Geberit (GEBN) H2 2024 earnings summary

Executive summary

• Net sales grew 2.5% in local currency despite a challenging European construction market and negative currency effects, driven by new product launches and market share gains.

• EBITDA margin remained robust at 29.6% despite wage inflation and increased operational expenditures.

• CHF 540 million was distributed to shareholders in 2024 via dividends and share buybacks, representing 88% of free cash flow.

• Significant investments were made in customer engagement, digitalization, sustainability, and new product development.

Financial highlights

• Net sales in Swiss francs were CHF 3.09 billion, flat year-over-year due to currency effects; in local currency, sales rose 2.5%.

• EBITDA reached CHF 913 million, down 0.9% in Swiss francs but up 2.7% in local currency; margin was 29.6%.

• EBIT was CHF 762 million, down 0.9% in Swiss francs, with a margin of 24.7%; in local currency, EBIT rose 3.2%.

• Net income was CHF 597 million, down 3.2% reported, mainly due to a higher tax rate; EPS CHF 18.06, down 1.8% reported but up 1.3% in local currency.

• Free cash flow was CHF 613 million, with a margin of 19.9% and an EBITDA conversion ratio of 67.2%.

Outlook and guidance

• Building construction demand in Europe is expected to stabilize in 2025, with a slightly declining new build sector but a positive renovation market.

• Direct material prices are expected to remain stable in H1 2025, but wage inflation is forecast at around 4% and OPEX to increase by CHF 20 million.

• New product launches and operational initiatives, including digitalization and expansion in piping and shower toilet businesses, are planned.

• CapEx for 2025 is planned at around CHF 180 million, focused on modernization, capacity expansion, and automation.