Financial structure

Continued strong financial foundation

The continued healthy free cashflow – despite the downturn seen in 2022 – and low levels of debt allowed the attractive dividend policy and the share buyback programme to be continued while also maintaining the very healthy financial foundation of the Group.

Total assets decreased from CHF 3,772 million to CHF 3,429 million, among others as a result of currency effects. Liquid funds (including marketable securities and other short-term investments) decreased from CHF 511 million to CHF 206 million – not least due to the accelerated share buyback programme. In addition, the Group had access to undrawn operating credit lines for the operating business of CHF 722 million. Debt increased from CHF 784 million in the previous year to CHF 1,030 million. Overall, this resulted in an increase in net debt of CHF 551 million to CHF 824 million at the end of 2022.

Net working capital increased by CHF 80 million year-on-year to CHF 237 million. Property, plant and equipment decreased from CHF 956 million to CHF 948 million, while goodwill and intangible assets fell from CHF 1,493 million to CHF 1,410 million.

The ratio of net debt to equity (gearing) increased from 13.7% in the previous year to 55.0%. The equity ratio decreased to 43.7% (previous year 52.7%). The ratio of net debt to EBITDA increased to 0.9x (previous year 0.3x). Based on average equity, the return on equity (ROE) came to 42.7% (previous year 37.6%). Average invested operating capital, comprising net working capital, property, plant and equipment, goodwill and intangible assets, amounted to CHF 2,715 million at the end of 2022 (previous year CHF 2,824 million). The return on invested capital (ROIC) decreased slightly to 26.5% (previous year 27.1%).

The Geberit Group held 1,945,202 treasury shares on 31 December 2022, which equals 5.4% of the shares entered in the Commercial Register. Of these, 1,312,851 (3.7% of the shares entered in the Commercial Register) originate from the share buyback programmes, while the remaining 632,351 are earmarked for participation plans. The total number of shares entered in the Commercial Register stands at 35,874,333 shares.

The share buyback programme 2020–2022, started on 17 September 2020, was concluded on 16 June 2022. In total, 826,251 registered shares – equal to CHF 500 million and corresponding to 2.3% of the share capital entered in the Commercial Register at that time – were repurchased. The share buyback was conducted via a second trading line set up for the purpose of a capital reduction.

Following the conclusion of the share buyback programme 2020–2022, a new share buyback programme was launched on 20 June 2022. Over a period of two years, registered shares amounting to a maximum value of CHF 650 million will be repurchased. Based on the closing price of Geberit registered shares on 16 June 2022, this corresponds to around 1,400,000 registered shares. The registered shares will again be repurchased via a second trading line on the SIX Swiss Exchange for the purpose of a capital reduction. By 31 December 2022, 627,600 shares were acquired as part of the programme at a sum of CHF 286 million. The average purchase price per share was CHF 456.

In the reporting year, 1,109,452 shares were acquired in total at a sum of CHF 570 million. As a result, CHF 1,003 million, or 178% of the free cashflow, was distributed to shareholders as part of the dividend payment and the share buyback programme in 2022, which equates to a good 6% of Geberit’s market capitalisation as of 31 December 2022.

At the General Meeting of 19 April 2023, a proposal will be submitted for the reduction of the share capital to 35,189,082 registered shares at CHF 0.10 each through the cancellation of 685,251 treasury shares. The shares to be cancelled – originally 826,251 registered shares, of which 141,000 were already cancelled in June 2021 – originate from the share buyback programme 2020–2022.