Yves Brian Felix Bromehead's questions to COMPAGNIE DE SAINT GOBAIN (CODYY) leadership • Q3 2021
Question
Yves Brian Felix Bromehead of Exane BNP Paribas challenged the forecast of a negative price-cost spread in H2, noting peers reported positive spreads, and asked for the calculation and the outlook for H1 2022. He also inquired about the expected working capital outflow for the full year.
Answer
CFO Sreedhar N. clarified that while H1 had a positive spread, significant inflation acceleration in H2 would create a temporary negative spread despite achieving an 8.1% price increase in Q3. He expressed confidence in starting 2022 positively. COO, CEO & Director Benoit Bazin added that they are aggressively pushing further price increases in Q4 and are focused on rebuilding inventory to ensure customer service, which impacts working capital.