Saint-Gobain sales slip 6% in 1Q24

Saint-Gobain has reported total group sales of EUR11,356m in the first quarter of 2024, down 5.8 per cent from EUR12,406m in the same period a year earlier. According to the company, the decline was due to a contraction in new construction in Europe, but supported by growth in the Americas and Asia-Pacific. Volumes also fell, down 4.7 per cent YoY, while prices slipped 1.1 per cent. 

In northern Europe sales declined 11 per cent YoY in the 1Q24, coming in at EUR2779m. Volumes saw a 9.3 per cent contraction, while prices fell 1.7 per cent. The slowdown in new construction had a significant impact on the Nordic countries and Germany, while the UK benefited from a strong commercial sector. 

The southern Europe, Middle East and Africa region reported sales of EUR3617m, marking a 10.1 per cent YoY downturn. Volumes over the same period fell 7.7 per cent, while prices contracted by 2.4 per cent. While strong growth was seen in Turkey and Egypt on the back of recent investments, France saw a sharp decline in new construction. Spain and Italy reported increased volumes thanks to their resilient construction markets. 

A 5.9 per cent YoY improvement was seen in the Americas with sales in the 1Q24 expanding to EUR2349m. Volumes saw a 5.2 per cent YoY uplift, while prices advanced by 0.7 per cent, driven by the outperformance of North America. Sales in North America were up by 12.2 per cent, primarily due to a dynamic renovation market and with new construction having stabilised to a good level. 

Meanwhile, in Latin America, a 10.8 per cent contraction was seen, although volumes have now stabilised at the 4Q23 level. Brazil has seen certain macroeconomic indicators improve, while other countries in the region benefited from Saint-Gobain’s enhanced offering and mix, says the company. 

The Asia-Pacific region saw a 4.5 per cent YoY uptick in sales to EUR504m, with volumes improving by 8.5 per cent and prices advancing four per cent. India saw a double-digit rise in volumes, while in China the group continued to capture market share, despite a difficult new construction market. 

Saint-Gobain expects some of its markets to remain difficult in 2024, especially in the 1H due to a high comparison base, with new construction in Europe remaining a challenge. Construction is expected to hold firm in North America, while a recovery is expected in Latin America later in the year. The Asia-Pacific region is forecast to see growth growth in most countries.