Construction industry Geberit pays higher dividend for 2024 while keeping profits low
Geberit did not quite maintain the previous year's profit level in the 2024 financial year. Both operating profit and net profit fell slightly. Nevertheless, the dividend is to be increased slightly.
06.03.2025, 07:23
SDA
Operating profit (EBITDA) fell by 0.9% to CHF 913 million, as the sanitary technology group announced on Thursday. At the same time, the corresponding margin fell by 30 basis points to 29.6 percent, which is roughly in line with the figure announced in January.
The effects of the continuing high wage inflation and the Swiss franc's significant strengthening against most currencies were largely absorbed, Geberit said, referring to the slight weakening of the margin. Adjusted for the currency effect, operating profit would have been higher than in the previous year.
Net profit decreased by 3.2 percent to CHF 597 million. The reason for the somewhat sharper decline compared to the operating results was the significantly higher tax rate due to the OECD minimum taxation that has been in force since 2024.
Another dividend increase
The dividend is to be increased by 10 centimes to CHF 12.80 despite the decline in profit. This would be the fourteenth consecutive dividend increase. With the figures presented, Geberit has more or less met analysts' expectations.
Sales had already been announced in January: At 3.09 billion Swiss francs, it remained roughly at the previous year's level. The unfavorable currency development had a negative impact. In local currencies, the company recorded a net increase in sales of 2.5 percent.
Growth in local currencies was driven entirely by higher volumes. In addition to restocking in the wholesale business in the first half of the year, the market position was expanded. Various new products also performed strongly.
Geberit's outlook for the 2025 financial year is not yet very specific. The sanitary technology group expects demand from the construction industry to stabilize over the course of the year.
