Geberit Reports Flat Sales, Sees Stabilizing Demand

17 Jan 2025 CW Team

Swiss building materials supplier Geberit reported flat sales for the full year, maintaining 3.085 billion Swiss francs ($3.38 billion) despite a challenging construction market marked by higher interest rates and economic uncertainty.

The company’s sales matched the previous year’s level, aligning with analyst forecasts compiled by Visible Alpha, which predicted 3.08 billion Swiss francs. When measured in local currencies, sales grew by 2.5%, surpassing Geberit's guidance of 1%-2%.

Sales for the fourth quarter fell by 1.3% year-on-year, totaling 685 million francs. Geberit’s products, which serve both new construction projects and renovations, offer a snapshot of the broader health of the construction industry.

Looking ahead, the company anticipates a slight decline in the new construction market for 2025, but expects a "slightly positive development" in the renovation sector, which comprises about 60% of its business. Geberit also predicts weaker demand in China due to a slowdown in new residential construction.

After navigating an “extremely challenging market environment” in 2024, Geberit expects a marginal decline in its full-year EBITDA margin and operating profitability when it reports results on March 6, projecting a margin slightly below last year’s 29.5%.

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