Half Year 2024 Compagnie de Saint Gobain SA Earnings Call Transcript
Key Points
- Compagnie de Saint-Gobain SA (CODGF) achieved a record operating margin of 11.7% in H1 2024, surpassing the previous record of 11.3% in H1 2023.
- The company reported strong recurring net income of EUR 1.7 billion and record levels of free cash flow at EUR 2.5 billion, up 12% from the previous year.
- Strategic repositioning towards high-growth markets and construction chemicals has been successful, with significant acquisitions in North America, Asia, and emerging markets.
- The acquisition of FOSROC is expected to add EUR 2 billion in sales and EUR 450 million in EBITDA after synergies, enhancing the company's construction chemicals platform.
- Compagnie de Saint-Gobain SA (CODGF) has maintained a strong balance sheet with a net debt to EBITDA ratio of 1.4 times, even after recent acquisitions.
- Sales volumes were impacted by weakness in new construction in Europe, although there was growth in the Americas and Asia Pacific.
- The European new construction market remains down, with France experiencing significant declines, although the renovation market is resilient.
- Latin American markets remain down, although there was stabilization in Q2 with flat volumes.
- The company expects a smaller price-cost spread in H2 compared to H1 due to a tougher comparison basis.
- The mobility segment faces potential challenges due to a slowdown in the automotive market, although the company expects stable performance.
Good morning, everyone. It's my pleasure today to present our H1 2024 results, together with Sreedhar, our Group CFO. Two main takeaways on our first half. Once again, we delivered very strong results in H1 with regard operating margin. And second important point, we successfully achieved significant milestones in our strategic reposition.
Before I start, let me share with you a few recent examples of our light and sustainable solutions. Let's start, of course, with residential newbuild with the landmark project of the Olympics Athletes Village, where we have delivered 14 Saint-Gobain innovative sustainable solutions. It is today as you know, we are an official sponsor, so I cannot miss the great opportunity we are so proud of having delivered on this landmark job site.
Our solutions also bring many benefits in non-residential applications such as enhanced guest comfort in hotels also acoustic and light solutions for offices. On renovation some of you have visited our world-class testing
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