Q3 2024 Geberit AG Earnings Call Transcript
Key Points
- Geberit AG (GBERF) delivered strong top and bottom line results in Q3, with net sales growing by 6% in local currencies.
- The company achieved an EBITDA margin increase of 40 basis points, reaching 31.0%, despite wage inflation and less favorable material prices.
- Net sales in the Middle East Africa region increased by 45%, driven by strong growth in the Gulf region.
- The new share buyback program was launched successfully, with 18,000 shares bought back for CHF10 million by the end of Q3.
- Geberit AG (GBERF) reported double-digit sales growth for shower toilets in Europe, driven by new products like Alba.
- Currency impact negatively affected the top line by CHF10 million, or minus 1%.
- Net sales in the Far East Pacific declined by 2%, primarily due to market contraction in China.
- The piping systems segment showed relatively weaker development, with only a 1% increase, due to its higher exposure to the declining new build sector.
- Net income growth was slightly lower due to a significantly higher tax rate, influenced by the new OECD minimum taxation law in Switzerland.
- The European building construction market is declining, particularly in the new build sector, with building permits down by 15% last year.
Introduction and good morning. Ladies and gentlemen, welcome to Geberit nine month results conference call.
We will start with the third quarter figures then comment on the nine month development and finish as usual with an outlook favorite delivered strong top and bottom line results in Q3. Despite continued challenging market conditions, net sales grew in local currencies by 6% every day margin increased by 40 basis points despite the substantial wage inflation and less tailwind from lower direct material prices in Q3 EPS grew currently adjusted by 8% despite the significantly higher tax rate.
Let me now give you some comments on the sales development in the third quarter.
Net sales increased by 5% and reached CHF762 million.
The currency impact affected the top line negatively by CHF10 million or minus 1%.
Hence in local currencies group net sales increased by 6% all driven by volume volume benefited from a base effect due to wholesaler de stocking in the previous year and one additional working day.
However,
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