Organic growth at 3.4% for the nine-month period, 2019 objectives confirmed.
- Organic growth at 3.4% for the nine-month period and at 3.1% in Q3
- Volumes up 1.4% for the nine-month period and up 1.7% in Q3
- Prices up 2.0% for the nine-month period and up 1.4% in Q3 in a less inflationary cost environment
- Positive currency impact of 0.7% for the nine-month period and of 1.0% in Q3; positive Group structure impact of 0.2% for the nine-month period and of 0.3% in Q3
- 8.5 million shares bought back at the end of September 2019
Consolidated sales for the first nine months of 2019 were €32,471 million compared to €31,130 million for the first nine months of 2018.
The currency impact was positive at 0.7% over the nine-month period and 1.0% in the third quarter, resulting mainly from the appreciation of the US dollar against the euro, despite the depreciation of the Nordic krona.
The Group structure impact added 0.2% to growth over the nine-month period and 0.3% in the third quarter, reflecting the integration of acquisitions in new niche technologies and services (Kaimann in technical insulation), in Asia and emerging countries (Join Leader in adhesives), and to consolidate our strong positions (Hunter Douglas in specialty ceilings). The acceleration in our divestment program is only partially reflected in the nine-month period given the deconsolidation dates, in particular for the Pipe business in Xuzhou, China, the silicon carbide business, glazing installation operations in the UK and glass processing in Sweden and Norway. After the recent finalization of new divestments, the Group is deconsolidating its Distribution business in Germany, Optimera in Denmark and K par K in France for the fourth quarter of 2019.
Like-for-like sales rose 3.4% over the nine-month period and 3.1% in the third quarter. Despite a less supportive market overall, volumes were up 1.4% in the nine-month period, including a rise of 1.7% in the third quarter with a positive 1.5% calendar impact. Prices contributed 2.0% to growth over the nine-month period and 1.4% in the third quarter in a less inflationary environment for raw material and energy costs and with a higher prior-year comparison basis.
The acceleration in the Group’s transformation within the scope of its new organization continues apace:
Divestments completed or signed by Saint-Gobain to date in order to enhance its growth and profitability profile represent sales of over €3.1 billion. The Group is continuing its divestment program even though the initial target of over €3 billion in sales divested by the end of the year has already been met. The full-year operating margin impact is more than 40 basis points, ahead of the target of the “Transform & Grow” program of a gain of 40 basis points in the operating margin.
The program to unlock €250 million in additional cost savings by 2021 thanks to the new organization is producing results faster than initially expected, allowing for an accelerated timetable: over €80 million in cost savings for 2019 (versus an initial target of over €50 million), of which €35 million in first-half 2019, and overall savings of €150 million in 2020 (versus €120 million initially).
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