Saint-Gobain's market cap, dividends, sales and earnings in 2020-2021

  •   DEHOUI Lionel

The Saint-Gobain Group is one of the world's leading manufacturers and distributors of building materials. These are used in the construction, mobility, industry and health sectors. The company operates in 72 countries and employs over 167,000 people worldwide. Here are the key points to remember about its annual results for the financial year 2020.

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Saint-Gobain's market cap, dividends, sales and earnings in 2020-2021
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Fiscal 2020 revenue

In the first half of 2020, Saint-Gobain's sales fell sharply by 12.3%. In the second half of the year, the Group recovered with a remarkable improvement in all segments. This led to a 4.8% growth in turnover (on a like-for-like basis) in the second half of the year.

In April, the company saw a drop in sales, with a level of activity of 60% compared to the previous year. From June onwards, sales gradually rebounded with a return to normal in most countries. In H2-2020, volumes increased by 3.4%.

This half-year was also marked by a good price dynamic with an increase of 1.4%. In addition, over the twelve months of FY2020, Saint-Gobain's annual sales reached €38,128 million, compared with €42,573 million in 2019. It therefore fell by 10.4% year-on-year.

For the year as a whole, volumes fell by 4.7%. However, a good dynamic continued to be observed at the level of prices with a growth of 0.9%.

 

Group business review by segment

The High Performance Solutions (HPS) segment showed an improvement in the financial year 2020. In the second half of the year, its sales decreased by 1.9%. In the last quarter alone, it grew by 0.8%. For the year as a whole, the division's turnover fell by 10.1%.

In the second half of the year, this division benefited from a recovery in most industrial markets. As a result, the operating margin was 11.1% in H2-2020, compared to 12.5% in the same period last year. For the full year, it was 9.4%, compared to 12.7% in 2019.

In H2-2020, Mobility revenues were flat. In the fourth quarter, it grew on an easier comparison basis. However, for the year as a whole, revenues were down sharply. This is due in particular to the 17% drop in volumes recorded in the second quarter.

In the second half of the year, sales in Europe were down. In contrast, sales to China and the Americas grew strongly. In addition, the Mobility business continued to drive the automotive market throughout the year. The market was particularly exposed to products for electric cars.

Industry revenues were down in the second half of 2020. However, it improved compared to the first half. The consumables business showed a gradual rebound (particularly in the DIY markets). They regained good momentum in emerging countries.

For their part, the activities serving the construction industry showed good resistance throughout 2020. Their turnover remained almost stable. They also recorded slight gains in market share. The second half of the year was marked by a recovery, particularly in external thermal insulation solutions.

The fourth quarter was prolific with double-digit growth. In addition, for the full year 2020, the Life Sciences segment continued its growth momentum in the medical and pharmaceutical sectors.

 

Performance of other financial indicators in 2020

For the full twelve months of 2020, Saint-Gobain recorded operating income of €2,855 million, compared with €3,390 million in the previous year. It therefore fell by 15.8% (at actual exchange rates) over the year. On a like-for-like basis, the result was down by 12.3%.

The operating margin was 7.5% in 2020, compared to 8.0% the previous year. It should be noted that in the second half of the year, it grew by a record 10.0%. For the year under review, the group generated a net current result of €1,470 million, compared to €1,915 million in 2019, a year-on-year decline of 23.2%.

The downward trend was also observed in the company's Ebitda. 4,415 million in 2020. 4,870 million a year earlier. 4,870 million, a year-on-year decline of 9.3%.

 

Financial structure at the end of 2020

Saint-Gobain recorded a strong increase in free cash flow for the full year 2020. The latter reached a record level, amounting to €3,044 million, compared with €1,857 million at the end of December 2019. 1,857 million at the end of December 2019. This represents a clear increase of 63.9% over the one-year period.

1,343 million in 2020, compared to '297 million a year earlier. As for divestments, they amount to 2,567 million euros in 2020, compared to 1,052 million euros the previous year.

In addition, the group's net debt was significantly reduced. 7.2 billion at 31 December 2020, compared to

 

Saint-Gobain dividend and market capitalisation

The Saint-Gobain group is also one of the companies that pays a coupon to its shareholders. At the Annual General Meeting held on 3 June 2021, the Board of Directors of the company proposed the payment of a cash dividend of 1.33 euros per share for the financial year 2020. 1.33 per share in respect of the 2020 financial year. The dividend was paid on June 9, 2021.

Saint-Gobain is also active in the equity markets. The company is listed on the Paris stock exchange. It is also a component of the French CAC 40 stock market index. In November 2021, its market capitalisation is estimated at more than 30 billion euros.

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