GROHE grows strongly in Europe

Lixil

Japan: All business segments reported year-on-year growth in core earnings, supported by strong renovation demand, despite a decline of over 10% in new housing demand. The LHT segment benefited from increased sales of subsidy-eligible products; however, a sharp rise in aluminum prices in the second half, following a previously low base, negatively impacted fourth-quarter earnings.

International and Other Markets: In the LWT international segment, revenue remained largely stable year-on-year, while core earnings improved significantly due to a strategic shift toward higher value-added products in Europe and IMEA. Although housing markets in the Americas and China remained subdued, the Americas achieved core profitability in March, reflecting the positive impact of ongoing structural reforms.

Other income and expenses increased compared to the previous year, mainly due to additional costs associated with structural reforms. Meanwhile, finance costs rose year-on-year, driven by foreign exchange losses.

Europe: Housing demand remains subdued, primarily due to rising construction costs across key markets, although signs of gradual recovery are emerging through pent-up demand.

Future Initiatives: The focus is on enhancing product mix by increasing the share of high-value offerings, including premium color ranges and GROHE SPA. Additionally, efforts are underway to improve operational efficiency by streamlining the supply chain, particularly through optimization of the logistics network.

IMEA (Middle East, India, and Africa): Demand across the Middle East remains resilient, particularly in Saudi Arabia. While the ongoing situation in Iran has had a limited impact on revenues so far, it continues to be closely monitored.

In India, housing demand is rising, supported by rapid urbanization and a growing middle class, with strong performance observed in the project segment. Meanwhile, GROHE has delivered solid results across Africa, achieving notable growth driven by key markets such as Egypt and Morocco.

Future Initiatives: The strategy focuses on expanding showroom presence and strengthening project pipelines in priority markets, particularly Saudi Arabia and India, with an emphasis on core GROHE offerings and the premium GROHE SPA range.

Source: LIXIL