The Geberit Group has reported "convincing results in the first six months of 2025 despite the continuing challenging environment," with growth in volumes, stable operating margins and solid cashflow underpinning performance.
© Geberit
Net sales rose by 1.7% to CHF 1,665 million, or 3.9% adjusted for currency effects. Operating cashflow (EBITDA) stood at CHF 514 million, representing a margin of 30.9%. The decline of 70 basis points was "almost entirely due to the aforementioned one-off costs" relating to the closure of a German ceramics plant. Earnings per share decreased by 2.7% to CHF 10.28; excluding these one-off costs, they would have increased by 1.0%.
Management continues to forecast "growth in net sales in local currencies of around 4% and an EBITDA margin of around 29%" for the full year.
Regional performance
Across Europe, currency-adjusted sales increased by 3.1%. Strong gains were recorded in Austria (+9.8%), Germany (+5.9%) and Benelux (+5.8%), with additional growth in Italy (+2.6%), Eastern Europe (+1.8%) and Northern Europe (+1.3%). Switzerland (-2.5%) and Western Europe (-2.8%) saw declines. Outside Europe, growth was strongest in the Middle East/Africa (+24.8%) and America (+9.5%), while the Far East/Pacific region contracted (-4.8%) due to weakness in China despite growth in India.
By product area, currency-adjusted net sales rose in Bathroom Systems (+5.7%), Installation and Flushing Systems (+3.4%) and Piping Systems (+2.9%).
Margins and results
Operating results were weighed down by "negative currency developments." However, Geberit emphasised that "operating margins were only slightly affected by the currency effects due to the long-term currency strategy, in which costs should be incurred in the same currencies as sales whenever possible."
The one-off plant closure costs amounted to EUR 17 million, equivalent to a 60-basis-point impact on EBITDA margin. While wage inflation, higher energy costs and investment in digitalisation reduced profitability, these were partly offset by lower material costs and strong volume growth.
Net income declined by 3.3% to CHF 339 million, representing a return on sales of 20.3% (previous year 21.4%). Excluding one-off costs, net income would have been CHF 352 million with a margin of 21.1%. Free cashflow improved strongly, increasing by 13.9% to CHF 247 million.
Solid financial base
Geberit's balance sheet strengthened, with net debt reduced by CHF 173 million to CHF 1,167 million and the equity ratio rising to 34.5% (previous year 32.9%). The ongoing share buyback programme saw around 106,000 shares repurchased in the first half of 2025.
Outlook
Management cautioned that "geopolitical risks and the associated macroeconomic uncertainties have increased further." While European new construction activity is expected to decline slightly, renovation, which represents 60% of Geberit's sales, is forecast to remain resilient. Outside Europe, demand is expected to remain strong in India and the Gulf region, while China continues to face headwinds.
Regardless of market conditions, Geberit confirmed its focus for 2025 will include expansion of piping systems, growth in shower toilets, the roll-out of the Duofix installation element, international market development and optimisation of ceramics plants.
The company concluded: 'Management sees Geberit as being well positioned to further expand its market position. This assessment is based on the stable and long-term strategy, the proven business model with strong customer relationships and the industry-leading financial stability.'
More information:
Geberit
[email protected]
www.geberit.com
