Net sales increased by 24.9% compared with the first half of 2020 and by 16.9% compared with the same period in 2019
Geberit, a European leader in the field of sanitary products and bathroom ceramics, closed the first half of 2021 with net sales up 24.9% to CHF 1.83 billion. When compared with the first half of 2019 – and thus with net sales before the COVID-19 pandemic – an exceptionally strong growth of 16.9% after currency adjustments was also seen.
This growth was achieved thanks to the strong increase of net sales in the second quarter: +37.8% compared to the same quarter in 2020 (the largest quarterly increase since the IPO in 1999) and +20.4% respect to the second quarter in 2019. According to the management, it was also mainly due to the outstanding performance and flexibility of the production plants and in logistics.
Despite significant challenges on the raw material markets, where prices have risen considerably since the end of 2020, Geberit’s results and margins also saw significant double-digit increases at all levels: operating cashflow (EBITDA) increased by 35.5% to CHF 626 million, due to volume growth; operating profit (EBIT) grew by 41.7% and net income was up 46.1% to CHF 460 million.
All geographic markets posted exceptionally strong results for the first half of 2021. Europe, which represents 92% of Geberit’s sales, grew by 21.8%, thanks to above-average growth in Italy (+52%), United Kingdom/Ireland (+46.9%), the Iberian Peninsula (+31.7%), France (+29%), Austria (+43.8%), Eastern Europe (+31%), and double-digit growth in Switzerland (+14.2%), the Benelux Countries (+12.8%), the Nordic Countries (+10.1%) and Germany (+15.6%), which is Geberit’s largest market with a 32% share on total group’s sales. Very positive results were also achieved in Middle East/Africa (+53.3%), Far East/Pacific (+39.4%) and America (+12.1%).
All three product areas developed positively in the first six months of the year: the “Installation and Flushing Systems” division grew by 23.9%; “Piping Systems” by 22.4% and “Bathroom Systems” by 21.3%.
In the first half of 2021, Geberit’s investments in property, plant and equipment tot up CHF 54 million (corresponding to 2.9% of net sales), mainly used for capacity expansions and modernisations - thus laying the foundations for further improvements in production efficiency – and for new products. R&D expenses amounted to CHF 39 million (2.1% of net sales).
For 2021 as a whole, Geberit’s Management expects a low double-digit growth in net sales and an EBITDA margin at the upper end of the medium-term target range of 28% to 30%.