![](/templates/proglobalmedia-main/images/globe-blue-whitebg.gif)
Gypsum industry news
Etex uses price rises to drive revenue in first half of 2023
05 September 2023Belgium: Etex’s Building Performance division drove revenue in the first half of 2023 through price rises despite a softening in gypsum wallboard sales volumes. The group’s total revenue grew by 4% year-on-year on a like-for-like basis to Euro2.02bn in the first half of 2023 from Euro1.79bn in the same period 2022. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 14% to Euro363m from Euro319m in real terms.
Bernard Delvaux, the chief executive officer of Etex, said “In the first half of 2023, Etex coped with an overall slowdown of the construction sector - both in new build and renovation - triggered by several elements leading to high volatility and uncertainty such as inflation that puts pressure on consumers’ buying power, higher interest rates and more restricted loan policies by banks. However, Etex managed to record improved sales compared to the first half of 2022 through swift adaptations to challenging market contexts and cost-to-price monitoring. While our volumes are slightly impacted, margins remain strong.”
Notable events so far in 2023 include Etex’s acquisition of UK-based Superglass Insulation in June 2023. It divested its two Russia-based units under its Ursa subsidiary in August 2023. It also acquired Betacon, a Romania-based company to secure raw material supply for wallboard activities in the country.
Wallboard sales drive GMS business in first quarter
31 August 2023US: GMS’ net sales grew by 4% year-on-year to US$1.41bn in the quarter to 31 July 2023 from US$1.40bn in the same period in 2022. Sales of wallboard increased by 10% to US$571m from US$522m. However, the company’s earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 2% to US$165m from US$169m.
John C. Turner, Jr, president and chief executive officer of GMS, said “We were pleased to deliver a solid start to fiscal 2024 with first quarter results that were in line with our expectations, continuing to demonstrate the resilience of pricing in wallboard, ceilings and complementary products, as well as the strength and stability that our balanced end markets provide.”
BNBM’s income and profits grow in the first half of 2023
30 August 2023China: Beijing New Building Materials (BNBM)’s operating income grew by 9% year-on-year to US$1.57bn in the first half of 2023, from US$1.44bn in the same period in 2022. Its net profit increased by 19% to US$251m from US$211m. The company said that it had a total gypsum wallboard production capacity of 3.4Bnm2/yr and that it was the world’s largest gypsum board group.
Parent company China National Building Material (CNBM) reported separately that its total sales of gypsum wallboard remained stable in the first half of 2023, at 1.09Bnm2. It said “The supply of gypsum board is stable, but affected by the weak operation of the real estate market. The demand is insufficient and the operation of the industry is under pressure.” It added that BNBM built four “nearly zero emission” gypsum board production lines in the reporting period.
Fletcher Building grows earnings for Building Products division in 2023 financial year
16 August 2023New Zealand: Fletcher Building has managed to grow its earnings for its Building Products division in its 2023 financial year despite a weakened residential market in the second half of the year, poor weather and rising input costs. It noted that “substantial cost increases were absorbed on gypsum, paper, resin and freight, partially offset by lower utility costs from the drop in electricity prices.” It combated this through cost management and ‘pricing discipline.’ Revenue from the group’s Building Products division fell slightly to US$863m in the financial year to 30 June 2023 from US$873m in the same period in 2022. However, earnings before interest and taxation (EBIT) rose by 4% year-on-year to US$120m from US$115m.
Ross Taylor, the chief executive officer of Fletcher Building, said “Our US$240m investment in Winstone Wallboards GIB plasterboard manufacturing and distribution facility in Tauranga has now commenced production and will be fully operational by the end of October 2023. The new plant’s state-of-the-art technology delivers more production capacity allowing for product innovation and future growth.”
Overall the group’s revenue dropped slightly to US$5.07bn from US$5.08bn and EBIT dropped by 29% to US$298m from US$420m. The large drop in earnings was mainly attributed to additional costs allocated to the New Zealand International Convention Centre and Hobson Street Hotel project. Adjusted for significant items the group’s EBIT rose by 6% to US$477m from US$452m.
Eagle Materials’ Light Materials division suffers from lower gypsum wallboard sales volumes in the first quarter
03 August 2023US: Eagle Materials’ sales revenue from gypsum wallboard fell in the first quarter of its 2024 financial year due to declining wallboard sales volumes. The revenue from its Light Materials division dropped by 2% year-on-year to US$242m in the quarter to 30 June 2023 from US$248m in the same period in 2022. The company blamed this on lower gypsum wallboard sales volumes, although it was partially offset by higher prices. Its wallboard sales volumes declined by 4% to around 71Mm2 from 74Mm2. However, its earnings from its Light Materials division rose by 12% to US$98.1m from US$87.9m. Overall, the company’s total revenue grew by 7% to US$602m driven by strong cement sales volumes and higher prices.
France: Saint-Gobain’s sales rose by 1.6% on a like-for-like basis to Euro25bn in the first half of 2023. This was driven by the group’s High Performance Solutions division, sales in Asia-Pacific and improved business in North America. Sales grew in all regions apart from Northern Europe. However, in real terms, sales fell by 2% year-on-year from Euro25.5bn in the same period 2022. The group’s earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 1.5% to Euro3.74bn from Euro3.68bn.
Benoit Bazin, Chief Executive Officer of Saint-Gobain, said that there had been a “moderate slowdown in its markets in the short-term.” He added “Over 60% of our earnings are now generated in North America, Asia and emerging countries, where trends are improving and the growth outlook is supported by demographics and rapid urbanisation. In Western Europe, renovation - our biggest market - continues to show good resilience as expected, with stimulus measures and regulations aimed at accelerating the path to carbon neutrality; structural demand for new construction is growing, even though additional financing costs are temporarily impacting the sector.”
US: Eagle Materials reported sales of US$2.1bn in 2022, up by 15% year-on-year from 2021 levels. The producer's earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 19% to US$782m. Its light materials sales, including gypsum wallboard, rose by 22% to US$981m. Sales volumes of gypsum wallboard rose by 4% to 87.8Mm3, while it raised prices by 17% to US$8.46/m3.
President and CEO Michael Haack said "Looking ahead, we anticipate continued attractive fundamentals in our markets, despite headwinds relating to higher interest rates and affordability constraints in single-family residential construction. Among the favourable demand factors we expect will affect our results in future periods are projected funding increases for infrastructure projects and healthy demand for heavy industrial projects and multi-family residential construction. We remain well-positioned to capitalise on these conditions, given our geographical footprint across the (Central) US Heartland and fast-growing Sun Belt (Southern US) and our financial strength and flexibility."
France: Saint-Gobain’s sales grew by 5% on a like-for-like basis by Euro12.4bn in the first quarter of 2023 from Euro12bn in the same quarter in 2022. In real-terms sales increased in each business segment apart from Northern Europe, where a “sharp” downturn in new construction was reported. Sales volumes fell by 6%, with volumes down in all business segments apart from High Performance Solutions. Particular sales growth was noted in Southern Europe - Middle East & Africa due to a resilient renovation market. Gypsum wallboard and insulation products were reported as driving sales in North America.
BNBM’s sales take a hit in 2022
14 April 2023China: BNBM’s operating income fell by 6% year-on-year to US$2.90bn in 2022 from US$3.07bn in 2021. Its net profit dropped by 11% to US$457m from US$511m. Parent company China New Building Material (CNBM) reported that its sales volumes of gypsum wallboard declined by 12% to 2.09Bnm2 from 2.38Bnm2. It noted that, despite prices for raw materials and energy increasing in 2022, the poor local real estate market had led to a decline in demand for wallboard. It added that performance in Tanzania had grown in the reporting year and that new projects in Uzbekistan and Thailand remained on track. The group said that its 50 gypsum wallboard production lines had achieved “nearly zero emissions” in 2022.
Etex increases sales and earnings in 2022
17 March 2023Belgium: Etex's sales were Euro3.74bn in 2022, up by 25% year-on-year from 2021 levels. Its building performance division, which includes gypsum wallboard, recorded revenues of Euro2.43m, 65% of the group total. Etex said that the division’s market positions and results 'evolved positively,' and 'demonstrated leadership' in the face of raw materials price rises. The group's recurring earnings before interest, taxation, depreciation and amortisation (REBITDA) totalled Euro645m, up by 13%.
During the year, Etex's Romania-based subsidiary Siniat commissioned its new Euro1m gypsum drying and micronisation plant at its Aghiresu gypsum wallboard plant in Cluj. The market yielded turnover growth of 17% year-on-year for Siniat, to Euro72.5m
Etex recycled 54% more gypsum than in 2018 across its operations, making it 'the most advanced gypsum recycler in Europe,' according to the company. Its absolute CO2 emissions fell by 20% over the same period.