Saint-Gobain's turnover down 10,5% in the 3rd quarter, penalized by Northern Europe

“In the Nordic countries, the very marked decline in the new construction market, particularly in Sweden and Norway, is partially offset by our strong exposure to the renovation market,” the group specifies in a press release.

The trend affects the whole of Northern Europe (United Kingdom, Germany, Scandinavia), where “renovation (around 55% of sales) is holding up better” than construction.

“Germany continues to suffer in a difficult macroeconomic context which weighs on new construction”, while after volumes down sharply by around -15% in the first half, “Eastern Europe is improving in the third quarter,” the group said.

Over nine months, the drop in turnover now reaches 4,9% to 36,5 billion euros for the group.

In France, the group is resisting thanks to its “strong exposure to renovation, supported by a favorable regulatory context”.

Saint-Gobain also welcomed the announcement in October by the State of an increase in the MaPrimeRénov' system to help with the renovation of housing to bring it to 5 billion euros in 2024.

On the American continent, the group, which has recently made several acquisitions, is limiting the damage with a 1,4% decline in its sales.

“The completion of the acquisition of Building Products of Canada was faster than expected, as of September 1, 2023, and allows Saint-Gobain to strengthen its unique position as leader in Canada with a complete offering of interior and outdoors", indicates the group.

Given the growth prospects in this region, “investments in new capacities continue in North America,” the group said.

If Asia is also affected by a decline in turnover, the group assures that "growth in China remains dynamic, despite a more difficult market, thanks to market share gains in light construction and renovation with the successful start-up of new capacities in the center of the country".

In this contrasting context, Saint-Gobain is targeting “a new operating margin record for the year as a whole, in double digits for the third consecutive year”.