The Rapperswil-Jona company explains that it recorded low marketing and travel expenses due to Covid-19.
The bathroom supplier Geberit recorded revenue of CHF 2.99 billion in 2020, down 3.1%. Adjusted for currency effects, growth reached 1.3%. The finance director has announced his departure for the end of the year.
The performance goes beyond consensus expectations. The Rapperswil-Jona company was penalized by negative currency effects to the tune of 136 million francs, according to the press release released on Thursday.
In the first half of the year, the construction industry was hit hard by restrictions due to the pandemic, while the second saw catch-up effects, a restocking of wholesalers and government stimulus programs, “resulting in strong sales”. The latter have evolved according to the duration of the restrictions in the countries, underlines the Saint-Welsh group.
The performance was strong in Germany (+ 7.3%), Austria (+ 5.0%), Switzerland (+ 4.1%), in Eastern Europe (+ 3.2%) and in the Nordic countries (+ 2.9%). It has been stable in the Benelux. On the other hand, the closures of construction sites weighed on revenues in the United Kingdom and Ireland (-15.7%), in the Iberian Peninsula (-10.9%), in Italy (-8.3%) and in France (-6.9%).
The effects of the pandemic are also visible in the Middle East and Africa (-14.1%) as well as in the Far East / Pacific (-7.2%). In the Americas region, sales increased 1.7%.
CFO is retiring
By product, sales in local currencies increased for bathroom systems (+ 2.3%) and installations and drainage systems (+ 2.1%), while they declined for piping systems ( -0.8%) due to a limited number of new projects.
The recovery was noticeable in the fourth quarter, with revenues rising to 724 million francs, up 3.2% in francs and 6.8% excluding currency effects.
Management expects a gross operating margin (EBITDA) of around 31% in 2020, thanks to “positive sales development” and low marketing and travel expenses due to Covid-19.
In addition, Chief Financial Officer Roland Iff will retire at the end of the year, after 17 years in this post. The search for a successor is already underway.
Detailed results will be released on March 10.
Posted today at 07:29