Saint-Gobain announces record results in 2021 thanks to home insulation

The French group announced a turnover of 44,16 billion euros in 2021, up 15,8% compared to that of 2020.

Its net income quintupled to 2,5 billion euros against 456 million in 2020, and 1,4 billion in 2019.

The net current result is at a "historic record" of 2,8 billion euros. And, "for the first time", the group reached "a double-digit margin" (+10,2%), indicated its general manager Benoit Bazin during a conference call.

The group had a "very good year 2021", summarized Mr. Bazin who took the reins of the group in mid-2021, succeeding Pierre-André de Chalendar.

He attributes the results in particular to his local organizational model. This allows it to react as closely as possible to the demands of its customers, and in particular to resolve the supply problems which multiplied in 2021 with the logistical crisis which followed the confinements, taken advantage of by many people to renovate their interior or insulate their home.

"35 million buildings to renovate in Europe"

"There are 35 million buildings to renovate and insulate in Europe by 2030" to facilitate the energy transition, underlined Mr. Bazin, who is counting on the opening of the public building renovation market in France for 2022, and on the opening of support measures in energy renovation in Germany.

In France, last year, the group took advantage of the MaPrimeRenov' household support scheme, which represents some 2 billion euros distributed for more than 800.000 files.

He also benefited from "three to five million euros" in subsidies distributed as part of the recovery plan to invest in decarbonization projects linked in particular to the purchase of electric ovens, said Mr. Bazin.

Second explanation mentioned by the manager to explain the good results: a "rigorous and disciplined allocation of capital".

Clearly, the group shed assets last year deemed "underperforming" or not sufficiently in its strategic priorities, such as the French furniture chain Lapeyre, while it invested in acquisitions deemed "profitable ", particularly in the construction chemicals sector.

Finally, Saint Gobain also welcomed "strong progress" on social and environmental aspects. In particular, he said he was "in line" with his objective of reducing his greenhouse gas emissions by 33% (scope 1 and 2) by 2030, validated by the Science-Based target (SBT) organization. .

While wild waste collection centers linked to building waste continue to multiply in France, the group claims to have reduced the volume of its non-recovered waste by 24% since 2017.

He also pointed out that investments in Norway to make its Fredikstad factory the world's first carbon-neutral plasterboard factory "have progressed well".

The shareholders are rewarded: the board of directors on Thursday decided to pay a dividend of 1,63 euros per share, up 23% compared to that of 2020, which represents 30% of the net current result.

The group will also allocate "at least" 400 million euros to buy back its own shares in 2022 to continue to reduce the number of its shares in circulation. The purchase price will be raised from 80 to 100 euros per share.