(Reuters] – French construction material group Saint-Gobain reported record-breaking first-quarter sales on Thursday. However, the company highlighted higher energy and raw materials costs for 2022 in a complex geopolitical and supply chain environment.

Saint-Gobain manufactures and distributes material in a variety of industries, from automotive to security and health to food and drinks. The company also confirmed that it will achieve its original target of making a greater operating income for 2022 than in 2021 at the same exchange rate, despite good momentum in its primary markets.

According to the group, it does not expect accelerating inflation, which will raise energy and material costs by 2.5 billion euro in 2022. This is a contrast to 2021, where its bill totalled 1.5 billion Euros, or 3.3%.

In its quarterly earnings statement, it stated “This inflation concerns in particular electricity costs in Europe where The Group has hedged about 80% of their and electricity purchases until 2022.”

For the three months ending March 2013, the company made 12 billion euros (or $12.60 billion) in sales. These figures are 16.4% higher than the year before.

Saint-Gobain claimed it had prepared several plans for continuing its operations in Germany (sensitive to Russian gas supplies), Poland (sensitive to Russian gas supplies”), the Czech Republic and Poland (if Russia stopped the flow completely).

Sreedhar Natarajan Chief Financial Officer stated in a conference phone call that the company hopes to keep any potential impact below 2%.

According to the group, it continues its Russian manufacturing activities and has canceled all investment plans in Russia.

($1 = 0.9527 euros)