(Reuters) – Saint-Gobain posted higher-than-expected first-quarter sales on Thursday, driven by the resilience of its renovation business.
While the real estate market has suffered from the interest rate hikes implemented by the world’s central banks to fight against high inflation, Saint-Gobain is counting on its renovation activity to compensate for the moderate slowdown in the construction market new this year.
“In an environment that remains inflationary, the group continues to serve and support its customers as well as possible, while managing the evolution of energy and raw material costs,” Saint-Gobain said in a press release.
The group confirmed its forecast of an operating margin of between 9 and 11% for the whole of the year, in line with its “Grow & Impact” plan. The quarterly turnover of the French building materials giant amounted to 12.4 billion euros, up 4.7% at constant scope compared to the same period in 2022, exceeding 12.15 billion euros predicted by analysts in a consensus compiled by the company.
The renovation activity supported Saint-Gobain’s performance in the Southern Europe, Middle East and Africa region, which became the group’s main market during the quarter, with nearly 70% of sales made in the region.
Northern Europe, which accounted for 31.2% of revenue in 2022, recorded only a 1% annual increase in sales, with renovation activities accounting for 55% of sales in the region, amid strong slowdown in new construction.
(Report Luca Fratangelo and Enrico Sciacovelli, Augustin Turpin, edited by Jean-Stéphane Brosse)
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