Geberit reports sales growth despite the crisis
The fresh growth in the fourth quarter of 2020 has enabled Geberit to post a year-end increase in sales after currency adjustments. EBITDA is expected to stand at around 31%.
Geberit Group, the Swiss sanitaryware and bathroom fittings giant listed on the SIX Swiss Exchange, posted 2020 sales revenues of CHF 2,986 million, down 3.1% on 2019 but up 1.3% net of negative currency effects of CHF 136 million. This result was partly due to further growth in sales in the fourth quarter of the year (an increase of 3.2% in Swiss francs and a currency-adjusted increase of 6.8%), following on from the 8.5% growth recorded in the third quarter.
The positive sales results, lower marketing and travel expenses and lower raw material prices have led to an improvement in operating cashflow margin with an expected EBITDA margin of around 31%.
The impact of the pandemic and the resulting restrictions on building activity in individual countries during the spring affected overall sales performance across the various markets. Sales performed well in Germany (+7.3%), Austria (+5%), Switzerland (+4.1%), Eastern Europe (+3.2%) and the Nordic countries (+2.9%). This contrasted with a fall in sales in the UK and Ireland (-15.7%), the Iberian Peninsula (-10.9%), Italy (-8.3%) and France (-6.9%), while the Benelux countries remained at 2019 levels. Sales also performed negatively in the Middle East/Africa (-14.1%) and Far East/Pacific (-7.2%), but made gains in America (1.7%).