• Sequential improvement in volumes in Q1 2024 at comparable working days and positive price-cost spread
• Decisive strategic steps reinforcing the Group's worldwide leadership in light and sustainable construction, with targeted and disciplined capital allocations:
Geographically, with the announcement of the acquisitions of CSR Limited in Australia and Bailey in Canada
In construction chemicals, with six acquisitions announced or closed since the start of the year
• Confidence in the 2024 outlook: double-digit operating margin for the fourth consecutive year
Like-for-like sales were down 5.8%, impacted by the decline in new construction in Europe but supported by growth in the Americas and Asia-Pacific.
Group prices were down 1.1% but the price-cost spread was positive, thanks to well-managed pricing and the decrease in certain raw material and energy costs.
As expected, volumes were down by 4.7% in first-quarter 2024 – with a negative working day effect of 1.5% at Group level – an improvement at comparable working days on the fourth- quarter 2023 performance (down 4.5%).
On a reported basis, sales came in at €11.4 billion, with a negative currency effect of 0.5%. The negative Group structure impact of 2.2% reflects the optimization of the Group's profile, both in terms of disposals – mainly in distribution (UK), glass processing activities, foam insulation (UK), and railing and decking (US) – and in terms of acquisitions, mainly in construction chemicals (Izomaks, Adfil, Menkol Industries, Drymix, Technical Finishes, IDP Chemicals), in North America (Building Products of Canada, ICC in the US) and in Asia-Pacific (U.P. Twiga in India, Hume in Malaysia).
The acquisitions of CSR Limited and Bailey, leading players in light and sustainable construction in the high-growth Australian and Canadian markets, will reinforce the Group's profitable growth profile. The processes necessary for completion are underway.
Asia-Pacific: good sales momentum
The Region reported robust organic growth of 4.5% in the first quarter, notably driven by strong momentum in India.
India delivered another outperformance, with a double-digit rise in volumes, thanks to its comprehensive and innovative range of solutions. The Group is seeing the benefits of its numerous recent sustainability-driven initiatives: the production of very low-carbon plaster, the use of biogas, systems for recovering heat produced during manufacturing, and an increase in the proportion of recycled materials in production. In a difficult new construction market in China, the Group progressed and continued to capture market share owing to its reinforced positioning in the renovation market and to the attractiveness of its offer centred on performance and light construction along with circularity and service excellence. South-East Asia remained at a good level, led by Malaysia, Indonesia and Singapore, owing mainly to the diversification of its portfolio and strong innovation.
High Performance Solutions (HPS): good momentum in Construction Chemicals; lower sales on industrial markets
HPS reported like-for-like sales down 5.4% over the quarter owing to a high prior-year comparison basis.
• Businesses serving global construction customers saw sales decline 6.7%, due to the sharp decline in Adfors’ reinforcement solutions, which are exposed to new construction in Europe. Chryso and GCP reported further good momentum, driven by infrastructure projects and innovation for decarbonizing construction. During the quarter Saint-Gobain Construction Chemicals signed a partnership agreement with Fortera in additive technologies for low-carbon cement and concrete, and opened two new plants.
• Mobility sales stabilized (down 0.9%) against a high comparison basis following the rebound in sales in 2023, with further investments for innovation and the continued optimization of its industrial facilities with the announced closure of Avilès in Spain.
• Businesses serving Industry contracted 8.6%, affected by a decline in industrial markets, especially those linked to investment cycles.
2024 outlook
In a geopolitical and macroeconomic environment that remains challenging, in 2024 Saint- Gobain will once again demonstrate its resilience and its excellent operating performance thanks to its focused strategy and its proactive commercial and industrial initiatives, enabling it to outperform its markets.
Saint-Gobain expects some of its markets to remain difficult in 2024, especially in the first half of the year owing to a high comparison basis, with a contrasting situation between Europe and the rest of the world:
• Europe: resilience in renovation; new construction remaining difficult before gradually reaching a low point country by country;
• Americas: construction to hold firm in North America (new build and renovation); recovery expected during the year in Latin America;
• Asia-Pacific: good growth in most countries;
• High Performance Solutions: Construction Chemicals to see dynamic growth; Mobility to hold firm and a contrasting situation on industrial markets in terms of demand.
Despite a context which remains difficult in certain markets, in 2024 Saint-Gobain expects a double-digit operating margin for the fourth consecutive year
