A Swiss multinational group has posted very convincing results in an extremely challenging environment in the first three quarters of 2024. Despite the sharp decline in the building construction industry and unfavourable currency developments, it was possible for the Geberit Group to achieve volume growth and maintain operating profitability at a high level.
Photo: Geberit Group.
In Swiss francs, net sales increased by 0.4% to CHF 2,400 million, or 3.1% in currency-adjusted terms. Operating cash flow (EBITDA) reached CHF 754 million. The EBITDA margin increased by 10 basis points to 31.4%. Earnings per share fell by 1.4% to CHF 15.13; in local currencies, however, there was an increase of 3.1%—despite a significantly higher tax rate due to the OECD minimum taxation law. For 2024 as a whole, Management expects growth of 1 to 2% in net sales in local currencies and an EBITDA margin of around 29.5%.
Net sales
In the first nine months of 2024, net sales for the Geberit Group increased by 0.4% to CHF 2,400 million. Adjusted for negative currency effects of CHF 62 million, the increase came to 3.1%. This development was positively influenced by a weak prior-year period, the rebuilding of inventories at wholesalers in the first half of the year, and the strong development of various new products. However, demand and the corresponding sales volumes in the end markets continued to decline.
The European markets continued to suffer the most from the very challenging conditions for the sanitary industry. Nevertheless, currency-adjusted net sales in Europe increased by 2.2% in the first nine months of 2024. Above-average increases were achieved in Eastern Europe (+9.9%), Italy (+6.3%), Benelux (+3.5%), and Germany (+3.3%). Austria (+0.5%) also made slight gains. By contrast, net sales in Switzerland (-0.4%), Western Europe (-1.4%), and Northern Europe (-4.3%) were down on the previous year. Outside Europe, positive currency-adjusted increases were achieved in the Middle East/Africa (+19.1%), America (+3.3%), and the Far East/Pacific (+3.2%).
In the product areas, currency-adjusted net sales increased by 5.1% in Installation and Flushing Systems, 2.0% in Piping Systems, and 1.7% in Bathroom Systems.
Outlook full year 2024
Regardless of the challenging market environment, the objective for 2024 remains to further strengthen the company's market position. This should be achieved by the two guiding principles of strategic stability and operational flexibility. The aim is to overcome the challenges posed by the decline in market development without harming medium-term potential.
For 2024 as a whole, Management expects growth of 1 to 2% in net sales in local currencies and an EBITDA margin of around 29.5%. The EBITDA margin in the fourth quarter of the year is always significantly lower than in the first three quarters due to seasonal factors.
Management is convinced that it will emerge stronger from this challenging and declining market environment. This assessment is based on the stable and long-term strategy, the proven business model with strong customer relationships, and the industry-leading financial stability.
More information:
Geberit Group
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www.geberit.com