GEBERIT AG 9M 2023 Results
Christian Buhl, CEO
Tobias Knechtle, CFO
November 2, 2023
Agenda
- Q3 2023
- 9M 2023
- Outlook 2023
SLIDE 2
9M 2023 RESULTS NOVEMBER 2, 2023
Key figures Q3 2023 - Strong bottom-line results despite volume decline
Net sales growth (in CHF) | Net sales growth (c.a.) | |
-7.9% | -4.8% | |
EBITDA margin | EPS growth (c.a.) | |
30.6% | +13.8% | |
+450 bps vs PY | ||
CAPEX (in CHF) | Share buyback (in CHF) | |
47 million | 61 million | |
+7 million vs PY | 132'000 shares |
- Net sales decline in extraordinarily difficult market environment
- Strong negative currency development
- Strong profitability increase despite volume decline
- Double-digitgrowth of EBITDA, EBIT, net income and EPS in local currencies
- Continued share buyback program in Q3 2023
SLIDE 3
9M 2023 RESULTS NOVEMBER 2, 2023
Net sales Q3 2023 - By region
CHF million | Net sales | Variance to PY | ||||
% CHF | % c.a. | |||||
Geberit Group | 728 | -7.9% | -4.8% | |||
Central Europe | ||||||
− Germany | 217 | -11.0% | -9.9% | |||
− Switzerland | 80 | -10.6% | -10.6% | |||
− Italy | 55 | -7.9% | -6.7% | |||
− Benelux | 54 | -0.1% | +1.1% | |||
− Austria | 46 | +1.5% | +2.7% | |||
Western Europe1 | 70 | -4.2% | -2.8% | |||
Northern Europe | 64 | -9.1% | -3.0% | |||
Eastern Europe | 60 | +11.8% | +12.6% | |||
Middle East / Africa2 | 29 | -20.3% | +2.0% | |||
Far East / Pacific | 29 | -22.0% | -11.2% | |||
America | 24 | -13.5% | -5.5% | |||
- Net sales decline in local currencies
- Volume/mix effect: around -11%
- Price effect: around +6%
- Overall decline in European building construction mainly driven by
- Declining new residential buildings
- Declining sanitary renovation sector
- Decline in Far East / Pacific driven by China, partially offset by India
SLIDE 4 | 1 | UK/Ireland, France, Iberian Peninsula |
9M 2023 RESULTS | 2 | Turkey and a few other smaller countries reclassified from Europe to Middle East / Africa region |
NOVEMBER 2, 2023
Net sales Q3 2023 - By product area
CHF million | Net sales | Variance to PY | ||||
% CHF | % c.a. | |||||
Installation | ||||||
& Flushing | 254 | 35% | -11.3% | -8.1% | ||
Systems |
Piping | 257 | 35% | -1.4% | +1.1% |
Systems | ||||
Bathroom | 217 | 30% | -10.9% | -7.3% |
Systems | ||||
- Net sales decline in installation & flushing systems and bathroom systems
- Growth in piping systems driven by FlowFit
SLIDE 5
9M 2023 RESULTS NOVEMBER 2, 2023
Key figures Q3 2023 - Double digit growth of all bottom-line results (c.a.)
CHF million | Q3 2023 | Q3 2022 | Variance to PY | |||||||
% CHF | % c.a. | |||||||||
Net sales | 728 | 791 | -7.9% | -4.8% | ||||||
EBITDA | 223 | 206 | +8.1% | +13.4% | ||||||
Margin | 30.6% | 26.1% | ||||||||
EBIT | 181 | 170 | +6.8% | +12.8% | ||||||
Margin | 24.9% | 21.5% | ||||||||
Net income | 148 | 139 | +6.2% | +10.8% | ||||||
Margin | 20.3% | 17.6% | ||||||||
EPS (CHF) | 4.42 | 4.05 | +9.1% | +13.8% | ||||||
Free cashflow | 236 | 221 | +6.8% | n/a | ||||||
Margin | 32.4% | 27.9% | ||||||||
- Strong negative currency development
- Negative effect on all P/L items
- Limited margin impact due to strong natural hedge
- Strong profitability increase despite volume decline due to
- High operational flexibility and cost discipline
- Lower energy and raw material prices
- Consequent pricing management
- Double digit growth of EBITDA, EBIT, net income in local currencies
- Double digit growth of EPS supported by accelerated share buyback in H2 2022
SLIDE 6
9M 2023 RESULTS NOVEMBER 2, 2023
EBITDA margin Q3 2023 - Substantial margin increase despite volume decline
26.1%
30.6% | ||||
-0.4% | ||||
+2.2% | ||||
+6.0%
-3.3%
EBITDA | Volume and | Price effects, | Other cost | Currency effect | EBITDA |
margin Q3 2022 | product mix effect1 | net2 | effects3 | margin Q3 2023 |
- Negative operating leverage from volume decline mitigated by high operational flexibility
- Sales price increases compensating last year's raw material price inflation
- Positive other cost effect due to record-high energy prices last year partly offset by wage inflation
- Natural hedge mitigating currency effect on EBITDA margin
SLIDE 7 | 1 Only with respect to raw material costs | 2 Sales prices and raw material prices | 3 Incl. energy costs | ||||
9M 2023 RESULTS | |||||||
NOVEMBER 2, 2023 | |||||||
Agenda
- Q3 2023
- 9M 2023
- Outlook 2023
SLIDE 8
9M 2023 RESULTS NOVEMBER 2, 2023
Key figures 9M 2023 - Substantial margin growth despite volume decline
Net sales growth (in CHF) | Net sales growth (c.a.) | |
-12.3% | -7.9% | |
EBITDA margin | EPS growth (c.a.) | |
31.3% | +5.2% | |
+320 bps vs PY | ||
CAPEX (in CHF) | Share buyback (in CHF) | |
128 million | 184 million | |
+34 million vs PY | 379'000 shares |
- Net sales decline due to record high comparison basis and declining market environment
- Strong negative currency development
- Improved profitability despite strong volume contraction
- Growth of EBITDA, EBIT, net income and EPS in local currencies despite volume contraction
- Substantial increase of CAPEX due to strategic investments
- Continued share buyback program in 9M 2023
SLIDE 9
9M 2023 RESULTS NOVEMBER 2, 2023
Net sales 9M 2023 - By region
CHF million | Net sales | Variance to PY | ||||
% CHF | % c.a. | |||||
Geberit Group | 2'390 | -12.3% | -7.9% | |||
Central Europe | ||||||
− Germany | 702 | -16.5% | -13.4% | |||
− Switzerland | 253 | -5.8% | -5.8% | |||
− Benelux | 202 | -7.2% | -3.8% | |||
− Italy | 193 | -4.7% | -1.1% | |||
− Austria | 143 | -15.5% | -12.5% | |||
Western Europe1 | 241 | -5.9% | -1.4% | |||
Northern Europe | 209 | -14.9% | -7.5% | |||
Eastern Europe | 182 | -21.6% | -18.0% | |||
Middle East / Africa2 | 105 | -7.1% | +11.5% | |||
Far East / Pacific | 84 | -14.5% | -4.7% | |||
America | 77 | -6.5% | -1.3% | |||
- Record high volumes in previous year
- Net sales decline in local currencies
- Volume/mix effect: around -18%
- Price effect: around +10%
- Decline in Europe due to
- Base effect and destocking effect
- Declining building construction market
- Shift from sanitary to heating
- Strong result in Middle East / Africa
- Decline in Far East / Pacific due to China and Australia
SLIDE 10 | 1 | UK/Ireland, France, Iberian Peninsula |
9M 2023 RESULTS | 2 | Turkey and a few other smaller countries reclassified from Europe to Middle East / Africa region |
NOVEMBER 2, 2023
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Geberit AG published this content on 02 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 November 2023 06:02:52 UTC.
