The Geberit Group has announced a solid financial performance for the first quarter of 2025, achieving a 4.9% year-on-year increase in net sales to CHF 878 million, despite ongoing macroeconomic headwinds and geopolitical uncertainties.
'The first three months of the year were marked by a significant increase in volumes and – excluding one-off costs for the closure of a plant – operating margins that remained at a high level,' the company reported. Adjusted for currency effects, net sales rose by 5.3%.
Robust regional and product performance
Growth was seen across all major product areas:
- Installation and Flushing Systems: +5.7% (currency-adjusted)
- Bathroom Systems: +5.2%
- Piping Systems: +4.8%
Regionally, Europe recorded a +5.0% increase in currency-adjusted net sales, with stronger performances in the Middle East/Africa (+14.9%) and America (+4.5%). Only the Far East/Pacific region saw a small decline of -0.8%, largely attributed to a weakening Chinese market.
Margin stability despite once-off costs
Operating cashflow (EBITDA) increased by 0.7% to CHF 277 million, reflecting a margin of 31.5%. This was down from 32.8% the previous year, 'entirely due to the aforementioned one-off costs' of CHF 14 million linked to the announced closure of a German ceramics plant.
'Excluding the one-off costs for the closure... operating margins remained at the high prior year level,' the report stated. These costs negatively affected EBITDA by 130 basis points and EBIT by 150 basis points.
While direct material prices remained stable year-on-year, wage inflation and rising energy costs exerted downward pressure on margins. Net income fell 1.6% to CHF 187 million, or CHF 199 million excluding one-off costs, maintaining a return on net sales of 22.7%.
Earnings per share were reported at CHF 5.69, a slight 0.7% decline. However, adjusted for the plant closure expenses, EPS would have increased by 5.6% to CHF 6.05. 'Compared to the developments recorded in net income, earnings per share recorded a smaller decrease... due to the positive effects of the share buyback programme.'
Cautious yet focused outlook
Geberit reaffirmed its strategic direction for 2025 amid a volatile global economic landscape. 'The geopolitical risks and the associated macroeconomic uncertainties have continued to grow,' the company noted, citing muted growth in Europe, the threat of new US tariffs, and potential inflation-driven adjustments to central bank interest rate policies.
Despite this, the company expects demand in the construction sector to stabilise in the latter part of the year. Core strategic initiatives remain in place, including:
- Expansion of piping systems (FlowFit, Mapress Therm, SuperTube)
- Growth in shower toilet business, led by AquaClean Alba
- Development in markets outside Europe
- Optimisation of ceramics production through a specialisation strategy
Geberit concluded, 'Regardless of the market environment, Geberit's focus in 2025 will again be on implementing various strategic initiatives.'
More information:
Geberit
www.geberit.com