Construction industryGeberit maintains sales at previous year's level in 2024
SDA
16.1.2025 - 07:36
Geberit was able to keep its sales constant in 2024. (archive image)
Keystone
The sanitary technology group Geberit is reporting virtually constant sales for the 2024 financial year. Adjusted for currency effects, however, the company achieved growth despite the sharp decline in the construction industry in Europe.
Keystone-SDA
16.01.2025, 07:36
16.01.2025, 08:29
SDA
At CHF 3.09 billion, net sales in 2024 were roughly on a par with the previous year, as Geberit announced on Thursday. In local currencies, the company recorded an increase in net sales of 2.5%.
Higher volumes
The growth was driven entirely by higher volumes, according to the press release. In addition to restocking in the wholesale business in the first half of the year, Geberit was also able to further expand its market position. In addition, various new products developed strongly.
The sales figures are roughly in line with analysts' expectations. On average, they had forecast annual sales of 3.08 billion, whereby they had expected growth in local currency to be somewhat weaker at 2.0%.
In the final quarter, net sales fell by 1.3% to CHF 685 million compared to the strong prior-year period. Adjusted for currency effects, however, there was a small increase of 0.7 percent.
Growth in Europe
In the European markets, Eastern Europe, Italy and Benelux, as well as Germany, recorded above-average growth, while there was a small increase in Austria. In the Swiss market, however, Geberit recorded a slight decline in sales (-0.1 percent).
However, there were clear declines in sales in Western Europe and in Northern Europe, where Geberit had sold a business. Outside Europe, the sanitary technology company grew in the Middle East/Africa and America. In Asia, strong business in India was offset by a decline in China.
According to the press release, operating profitability is likely to be slightly lower in 2024 due to the challenging market environment. The operating margin (EBITDA margin) is expected to be "slightly below the previous year" (2023: 29.9%).
Stable renovation market
For the new 2025 financial year, the sanitary technology group expects demand from the construction industry to stabilize overall over the course of the year. The new construction market in key markets such as Germany, the Nordic countries and Austria is still likely to decline. In contrast, the renovation market, which accounts for around 60% of Geberit's business, is expected to be stable to slightly positive.
Regardless of the market environment, the focus will remain on implementing various strategic initiatives in 2025. These include the further expansion of the piping systems business and the shower toilet business as well as the "specialization strategy" of the ceramics plants.
Plant closure in Germany
According to the documents, the ceramics plant in Wesel, Germany, is to be closed in 2026. The reasons given for this are an outdated infrastructure and limited growth potential. Around 300 employees are affected by the decision.
According to the information, the closure will result in costs of 40 million euros. The annual savings are estimated at 10 million euros per year.
In contrast, there are plans to build another logistics center in Ibbenbüren, Germany, with a view to expanding capacity in the long term. This is likely to require more than 100 additional employees. Operations are scheduled to start in 2029/30.