Half Year 2024 Geberit AG Earnings Call Transcript
Key Points
- Geberit AG (GBERF) achieved a slight net sales growth in local currencies of 2% despite a challenging market environment.
- The company maintained a stable profitability with an EBITDA margin of 31.6%.
- Net sales in Eastern Europe increased by 11%, driven by a strong base effect.
- Free cash flow increased by 17% to CHF217 million due to better working capital development and lower CapEx.
- The share buyback program was completed successfully, with 1.267 million shares bought back for a total amount of CHF600 million.
- Net sales decreased by 1% to CHF1.64 billion, negatively affected by currency effects.
- The new OECD minimum taxation law in Switzerland significantly increased the tax rate.
- Net sales in Northern Europe decreased by 5%, impacted by the divestment of the Nordic shower business.
- The EBITDA margin decreased marginally by 10 basis points due to wage inflation and additional expenditures for IT and digitization.
- The company expects a challenging market environment for the full year 2024, with declining building construction market volumes.
And good morning, ladies and gentlemen, and welcome to our half year results conference call. Geberit achieved in a difficult market environment, convincing results in the first call of the year. Let me start with the three key statements for H1. First, slight net sales growth in local currencies of 2% despite a declining building construction market in Europe. Second, a stable profitability on very high level with an EBITDA margin of 31.6%. And thirdly, a significantly increased tax rate due to the new OECD minimum taxation law in Switzerland.
Let me begin our review with a few comments on the top-line. In the first half of the year. Net sales decreased by 1% to CHF1.64 billion, negatively affected by currency effect. Negative currency effect led to a net sales loss of CHF52 million or minus 3%. In local currencies, net sales increased by 2%, of which 1% came from volume growth.
The slight volume growth was driven by two factors which compensated for the declining end market demand, a positive base
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