Half Year 2025 Geberit AG Earnings Call Transcript
Key Points
- Geberit AG (GBERF) achieved a net sales growth of 4% in local currencies despite challenging market conditions.
- Excluding one-time costs for the closure of the Basel ceramics plant, operating margins remained stable.
- Earnings per share (EPS) grew by 6% when excluding plant closure costs and negative currency effects.
- The company experienced strong sales growth in the Middle East and Africa region, with a 25% increase, and in America, with a 10% increase.
- Free cash flow increased by 40% to CHF247 million due to timing of tax payments and CapEx.
- Net sales were negatively affected by currency effects, resulting in a CHF37 million loss.
- The closure of the Basel plant incurred one-time costs of EUR17 million, impacting the operating result.
- EBITDA margin decreased by 70 basis points to 30.9%, primarily due to the Basel plant closure costs.
- Energy prices increased by 21%, contributing to cost pressures.
- Net income declined by 3%, resulting in a net income margin of 23%.
Good morning, ladies and gentlemen, and welcome to Geberit's half-year results conference call. Geberit achieved convincing results in the first half of the year. Let me start as usual with the three key statements for H1.
First, we achieved the net sales growth of 4% in local currencies, despite the continued challenging market environment. Second, excluding one-time costs for the closure of our ceramics plant in Basel, we kept operating margins stable. And third, we achieved an EPS growth of 6% if the plant closure costs and negative currency effects are excluded.
Let me begin our review with a few comments on the top line for the first half of the year. Net sales increased by 2% to CHF1.66 billion, negatively affected by currency effects. Negative currency effects led to a net sales loss of CHF37 million, or minus 2%. In local currencies, net sales increased by 4%, driven by growth in almost all countries in Europe and the continued strong development of new products.
The top line
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