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2023 Annual Results

• Good resilience in sales, down 0.9% like-for-like despite a difficult environment in new construction in Europe
• Record operating margin of 11.0% (up in all Regions) and record operating income at constant exchange rates
• Record free cash flow of €3.9bn, with a cash conversion ratio of 62%
• 34% reduction in CO2 emissions vs 2017 (scope 1 and 2)
• Total shareholder return (TSR) of 51% in 2023, with €1.6bn of share buybacks and dividends. Dividend of €2.10 (+5%) recommended for 2023
• 2024 outlook: despite a context which remains difficult in certain markets, the Group expects a double-digit operating margin for the fourth consecutive year

 

2023 Annual Results

Benoit Bazin, Chief Executive Officer of Saint-Gobain, commented:
“In a difficult macroeconomic environment with lower volumes, Saint-Gobain once again demonstrated the strength of its “Grow & Impact” strategy and of its positioning as the worldwide leader in light and sustainable construction. Our cost actions and well-managed pricing helped drive an improvement in the operating margin and in free cash flow generation, which both reached all-time highs. Thanks to strict capital allocation in terms of both capex and acquisitions, the Group now generates almost two-thirds of its earnings in North America, emerging countries and Asia Pacific, and I am delighted with the strong contribution that our planned acquisition of CSR in Australia would bring. Supported by the impressive agility and dedication of our teams, Saint Gobain is outperforming and demonstrating its resilience in contrasting markets, benefiting from its proximity to customers and its unique range of comprehensive innovative solutions. Saint-Gobain is determined to remain at the forefront of sustainable construction with the launch of low-carbon solutions, while reducing its own CO2 footprint, which is now 34% lower than in 2017 (scope 1 and 2).

I am confident that 2024 will be another successful year for Saint-Gobain, thanks to good momentum in the fast-growing North American, Asian and emerging markets and to the seamless integration of our recent acquisitions, particularly in construction chemicals. In Western Europe, renovation will continue to show resilience, while new construction will remain difficult but will gradually reach a low point country by country, in a market that remains structurally healthy given its construction needs. In this context, in 2024 we expect a double-digit operating margin for the fourth consecutive year.