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

26 Jun 2026

G R Infraprojects Founder Vinod Agarwal Passes Away

Vinod Kumar Agarwal, Founder and Promoter of G R Infraprojects, has passed away. He had been associated with the company since its inception in 1995. His vision, determination and entrepreneurial acumen laid the foundation for the company and helped shape its growth into a leading name in India’s infrastructure sector.Agarwal served as Managing Director from 2008 to 2021 and later as Chairman and Whole-time Director from 2021 to 2025. He stepped down from the office of Director on 10 November 2025. During his leadership tenure, the company moved through significant phases of growth, operatio..

Centre Prioritising Energy Security With Coal Gasification

Union minister for Coal and Mines G Kishan Reddy said the Centre is prioritising energy security through a strategic shift to coal gasification and has announced incentives totalling Rs 460 billion (bn) to support the effort. He said more than 35 companies will start coal gasification activities in India within two months and that the government is encouraging firms that bring technology to close the domestic technology gap. The minister described the initiative as aimed at reducing import dependence and developing indigenous capacity. India has the fifth-largest coal reserve in the world, and..

BHEL and Coal India Invest Rs 250 bn in Odisha Gasification

Bharat Heavy Electricals (BHEL) and Coal India (CIL) are jointly investing Rs 250 billion in a coal gasification project in Odisha, with the Prime Minister laying the foundation stone in Jharsuguda. Union Coal and Mines Minister G Kishan Reddy described the initiative as a transformative shift in coal utilisation that will open industrial avenues for the state. The project moves coal beyond conventional power generation to industrial feedstocks. Coal gasification will convert coal into synthesis gas, a versatile feedstock for chemicals, fertilisers and synthetic fuels, and the technology is ex..