The Swiss group’s net sales increased by 1.4% from January to September 2022. The growth rate slowed due to the decline in the third quarter.
Despite a 7.5% decline in the third quarter of 2022, the Swiss sanitaryware giant Geberit closed the first nine months of the year on a positive note with net sales of CHF 2.73 billion, an increase of 1.4% compared to the same period in 2021. Adjusted for highly negative currency effects, the increase was 8.2%, driven exclusively by sales price increases as volumes remained stable with respect to the all-time record level reached in the prior year.
Currency-adjusted prices for raw materials and energy rose by 21% and 131%, respectively, in the first nine months of 2022 which resulted in additional costs of CHF 210 million. Due to the multi-level distribution channel seen in the sanitary industry, adjustments to the sales price can only be implemented with a delay, meaning it was not yet possible to fully compensate the higher raw material and energy prices during the period in question. ù
EBITDA fell by 14.2% from its record level in 2021 to CHF 767 million (corresponding to an EBITDA margin of 28.1%), while net income declined by 17.1% to CHF 541 million. All European markets recorded positive growth rates in the first nine months of 2022 (+7.8% after currency adjustments). Double-digit growth was posted in Italy (+16.7%), the Iberian Peninsula (+14.7%), Eastern Europe (+14.2%) and United Kingdom/Ireland (+12.7%). Pleasing growth rates were also experienced in Switzerland (+6.7%), the Nordic countries (+6.4%), Germany (+6.0%), France (+5.5%), Austria (+4.4%) and the Benelux countries (+4.1%). The Middle East/Africa region continued to grow very strongly at +29.5%. Growth was also achieved in America (+5.8%) as well as in the Far East/Pacific region (+7.3%) which was negatively affected by lockdowns and the slowdown of building construction activity in China.
All three business units performed well: Installation & Flushing Systems grew by 7.2%, Bathroom Systems by 4.2% and Piping Systems by 13.6%.
While the ongoing geopolitical risks, soaring inflation and the uncertainties in relation to the Covid-19 pandemic suggest the need for a prudent outlook, the group’s management is forecasting mid to high single-digit net sales growth in local currencies and an EBITDA margin of around 27% for the full year 2022.