Geberit reports decline in volumes but increase in profitability

After currency adjustments, the Swiss group reported a 7.9% decline in volumes and a 4% increase in EBITDA for the first nine months of 2023.

Considering the extraordinarily difficult environment with declining building construction in Europe, the Geberit Group posted better-than-expected results in the first three quarters of 2023. Although volumes declined significantly from the record levels of 2022 (CHF 2,390 million, a decrease of 12.3% or 7.9% after currency adjustments), profitability increased. This was made possible above all thanks to high operational flexibility, lower energy prices and selling price increases (+10%), which partly offset the decline in volumes. EBITDA fell by 2.4% to CHF 749 million (+4% after currency adjustments), while EBITDA margin rose from 28.1% to 31.3%. Net income declined by 4.6% to CHF 516 million (currency-adjusted +2.1%).

Currency-adjusted net sales in Europe decreased by 9.2% overall after nine months. Italy and Western Europe (United Kingdom/Ireland, France, Iberian Peninsula) were slightly down on the previous year with -1.1% and -1.4%, respectively. In contrast, Benelux (-3.8%), Switzerland (-5.8%) and Northern Europe (-7.5%) sustained more pronounced declines. Double-digit decreases were recorded in Austria (-12.5%), Germany (-13.4%) and Eastern Europe (-18.0%). Net sales declined further in the Far East/Pacific region (-4.7%) and in America (-1.3%), whereas the Middle East/Africa region posted growth (+11.5%).

In the product areas, currency-adjusted net sales decreased by 5.4% in Piping Systems, by 7.9% in Bathroom Systems and by 10.1% in Installation and Flushing Systems.

For 2023 as a whole, Geberit expects a decline in net sales of around 5% in local currencies and an EBITDA margin of 29% to 30%.