Geberit Group has achieved a currency-adjusted increase in net sales of 2.5% in 2024, despite a significant decline in the European building construction industry. The company's net sales totalled CHF 3,085 million, almost the same as the previous year, as unfavourable currency developments offset the growth. The increase was driven by higher volumes, especially due to inventory rebuilding at wholesalers in the first half of the year and the strong performance of new products. The company also expanded its market position during this period. In terms of EBITDA margin, Geberit anticipates a slight decrease compared to 2023.
Photo: Geberit.
In the fourth quarter of 2024, net sales were CHF 685 million, reflecting a decline of 1.3% compared to the same quarter in the previous year. However, after adjusting for currency effects, sales increased by 0.7%, despite a strong comparison period in 2023.
Across European markets, the sanitary industry continued to face difficult conditions, but currency-adjusted net sales still rose by 1.9%. The strongest growth occurred in Eastern Europe (+7.1%), Italy (+6.2%), Benelux (+3.8%), and Germany (+3.2%), despite a sharp drop in market demand. Switzerland's sales remained stable at -0.1%. However, Western Europe (-2.6%) and Northern Europe (-4.2%) saw declines, with Northern Europe particularly impacted by the sale of Geberit's shower enclosure business. Outside of Europe, positive growth was recorded in the Middle East/Africa (+17.1%), America (+3.0%), and the Far East/Pacific (+0.2%), although growth in the Far East was dampened by declines in China.
In terms of product areas, currency-adjusted net sales increased by 4.8% in Installation and Flushing Systems, 1.3% in Piping Systems, and 1.1% in Bathroom Systems.
Geberit's operating profitability in 2024 is expected to be slightly lower than the previous year, despite volume growth and lower direct material costs. This is largely due to the impact of wage inflation in many countries and significant investments in strengthening the company's market position, including growth initiatives in selected developing markets, marketing for new product launches, celebrations for the company's 150th anniversary, and digitalisation projects. As a result, Geberit expects an operating cash flow (EBITDA) margin slightly below the previous year.
Looking ahead to 2025, Geberit expects a stabilisation of demand in the building construction sector, following sharp declines since mid-2022. In Europe, the number of building permits declined slightly by 1% in the first nine months of the previous year, although demand for new construction, particularly in Germany, Austria, and the Nordic countries, is still expected to decline.
The renovation market, which makes up around 60% of Geberit's business, is expected to show stable to slightly positive growth. Outside Europe, demand is expected to remain high in India and the Gulf Region, while declines are anticipated in China due to weak new residential construction. Geberit will focus on strategic initiatives in 2025, including expanding its piping business with new products, growing the shower toilet segment, pursuing growth outside Europe, and specialising its ceramics plants.
More information:
Geberit
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