Despite 1.7% increase, Geberit sales suggest an organic decline

21 Aug 2024 CW Team

Swiss plumbing materials supplier Geberit has forecasted flat organic sales for 2024, citing weak construction activity in Europe, a projection that falls short of market expectations. The company's shares dropped by 3.9% as of 0941 GMT; making it one of the worst performers on Europe's STOXX 600 index.

Geberit, whose products are used in both new builds and renovation projects, anticipates an overall decline in the construction industry in 2024, with the most significant downturns expected in Northern Europe, Germany, and Austria. Germany's property sector, currently in its third year of decline, is experiencing its most severe slump in decades.

The company's sales forecast suggests an organic decline in the second half of the year, despite a 1.7% increase in the first half when adjusted for negative currency effects. CEO Christian Buhl highlighted that the outlook is clouded by uncertainties regarding wholesalers' inventory levels and a higher comparison base in the fourth quarter of the previous year.

Geberit also projected that its core profit (EBITDA) margin for the year would be around 29%, a decrease from 29.9% in 2023. This margin guidance and the flat sales outlook were both below consensus expectations, which had anticipated organic growth of 1.1%.

For the first half of the year, Geberit's EBITDA fell by 1.6% to 518 million Swiss francs ($599 million), resulting in a margin of 31.6%. The company expects this margin to decline in the second half due to typical seasonal factors. The combination of record-breaking inflation and higher interest rates in Geberit's core markets has led both consumers and companies to delay construction projects in an effort to conserve cash. This trend has similarly impacted other construction sector suppliers, including Heidelberg Materials and Holcim, which have recently reported lower sales figures. (ET)

Resources

03 Jun 2026

Jyoti Structures Launches Heat Safety Drive Across Sites

Jyoti Structures (JSL) has strengthened heat safety measures across its project sites and manufacturing facilities as temperatures rise across India. The company has implemented a Summer Safety Plan covering all transmission line projects to address risks related to heat stress, dehydration and worker fatigue.The initiative includes rescheduling work away from peak afternoon temperatures, provision of drinking water, ORS and lemon-salt solutions, and installation of rest shelters near work areas. Daily toolbox talks, worker health monitoring, first-aid preparedness, emergency transport arrange..

MHADA Declares 82 Buildings Most Dangerous in Central and South Mumbai

The Maharashtra Housing and Area Development Authority (MHADA) has declared 82 buildings as most dangerous across Central and South Mumbai and has appealed to residents to vacate immediately. The list, prepared after structural assessments by the authority, identifies buildings judged to pose imminent risk to occupants and to passersby. Local civic bodies have been asked to coordinate evacuations and to make arrangements for temporary shelter and rehabilitation for displaced households. Officials said the authority prioritised buildings with visible structural distress, severe cracking, tiltin..

Damage Reported At Halwara Airport Terminal After First Rains

Severe damage was reported at the terminal of Halwara Airport during the first major rain spell of the season, prompting immediate concern among aviation and local authorities. Images from the site showed water ingress and visible deterioration of the terminal interior, affecting passenger areas and ancillary services. The airport authority suspended certain operations temporarily to assess structural safety and ensure passenger wellbeing. Preliminary inspections have prioritised electrical systems and roof seals to prevent further water ingress. State aviation officials ordered a formal inqui..