Saint-Gobain's turnover inflated by rising prices and building recovery

Saint-Gobain announced a higher turnover than expected by analysts in the third quarter, driven by the rise in material prices and the recovery of the construction sector and the economy around the world after the pandemic.

In the third quarter of 2021, Saint Gobain achieved sales of 10,8 billion euros, up 6,7% compared to the equivalent three months of 2020, bringing the total to 32,9 billion euros. sales over the first nine months, a jump of 18,1% compared to the equivalent period of 2020.

The consensus of Factset analysts was expecting a quarterly turnover of 10,67 billion.

The group "confirms the very strong increase in its operating income to a new all-time high" in 2021, indicates the group.

Saint-Gobain maintained the upward revision of its energy and raw material costs for 2021 due to inflation in the sector, i.e. around 1,5 billion euros over the year, instead of 1,1 billion announced at the end of July.

But carried above all by the increase in its own selling prices, it says it is "confident in its ability to compensate for inflation" over the year as a whole, "given the sharp acceleration in price increases to +8,7 , 2020% in the third quarter compared to the equivalent period of XNUMX ".

In Northern Europe, its main market, sales rose 12% for the quarter to 3,8 billion euros, more than expected by analysts, thanks to a "sharp acceleration in price increases ".

The Nordic countries recorded "solid growth", particularly in lightweight construction solutions in the "buoyant" renovation market.

The pace of growth in Germany has decelerated given the impact of the decline in the automotive market on demand for glass, even if modular construction remains "well oriented", the statement said.

In the UK, growth has been driven "exclusively by price" in a market "disrupted by supply chain difficulties".

In Southern Europe (which includes the Middle East and Africa), the group's sales amounted to 3,15 billion euros, almost as much as analysts expected (3,17 billion euros ).

In France, Saint-Gobain continued to observe "good trends", supported by the renovation market, and above all the incentives for energy renovation driven by the economic recovery plan. 400.000 public aid applications (MaPrimeRenov ') have been filed in France since the start of the year, indicates the group, which is counting on the renovation of public buildings in 2022.

Asked by analysts about the continued rise in material prices by the end of the year, the group's CEO Benoit Bazin replied that it was a "priority" for the group, which enjoys good "acceptance" from its customers.

The title Saint Gobain, listed on the CAC40, rose 0,89% Thursday to 60,89 euros, in a market up 0,75%.