Geberit Posts Growth and Profitability Amid 2024 Market Challenges
Switzerland: Geberit achieved better-than-expected results in the first three quarters of 2024, despite challenges such as a sharp decline in the building construction industry and unfavourable currency developments. The company reported a 0.4% increase in net sales to CHF 2.4 billion ($2.7 billion), or 3.1% in currency-adjusted terms. Operating cashflow (EBITDA) reached CHF 754 million ($846.2 million), marking a 0.7% increase (+4.6% adjusted) with an EBITDA margin of 31.4%, an improvement of 10 basis points. However, net income decreased by 3.1% to CHF 501 million ($562.3 million) due to higher tax rates driven by the OECD minimum taxation law introduced in 2024, though currency-adjusted net income rose by 1.3%.
In regional performance, Geberit achieved currency-adjusted sales growth of 2.2% in Europe, with strong gains in Eastern Europe (+9.9%), Italy (+6.3%), Benelux (+3.5%), and Germany (+3.3%). However, sales declined in Switzerland (-0.4%), Western Europe (-1.4%), and Northern Europe (-4.3%). Outside Europe, the company saw significant growth in the Middle East/Africa (+19.1%), followed by America (+3.3%) and the Far East/Pacific (+3.2%). Across product segments, all three business areas reported currency-adjusted growth, with Bathroom Systems growing by 1.7%, Piping Systems by 2%, and Installation and Flushing Systems by 5.1%.
While Europe’s new building sector is expected to see an overall decline in 2024, the renovations business, which accounts for 60% of Geberit’s sales, is experiencing robust growth. Globally, strong demand is anticipated in markets such as India, the Gulf Region, and Egypt, while China is expected to face a decline. For the full year 2024, Geberit forecasts 1-2% growth in net sales in local currencies, revised upwards from earlier expectations of stable sales, and an EBITDA margin of approximately 29.5%.
Geberit continues to strengthen its market position through investments in digitalization, IT projects, and product launches, while also celebrating its 150th anniversary. The company operates 26 production facilities, 22 of which are in Europe, and employs approximately 11,000 people in 50 countries. Listed on the SIX Swiss Exchange, Geberit generated CHF 3.1 billion ($3.5 billion) in net sales in 2023.
Source: Ceramic World Web