Financial structure

Continued strong financial foundation

The positive developments in free cashflow and the continuing healthy levels of debt allowed the attractive dividend policy and the share buyback programme to be continued while also maintaining the strong financial foundation of the Group.

Total assets increased from CHF 3,429 million to CHF 3,556 million. Liquid funds increased from CHF 206 million to CHF 357 million. In addition, the Group had access to an undrawn, firmly committed operating credit line for the operating business of CHF 500 million. Debt increased from CHF 1,030 million in the previous year to CHF 1,321 million. Overall, this resulted in an increase in net debt of CHF 141 million to CHF 965 million at the end of 2023.

Net working capital decreased by CHF 41 million year-on-year to CHF 196 million. Property, plant and equipment increased from CHF 948 million to CHF 976 million, while goodwill and intangible assets fell from CHF 1,410 million to CHF 1,340 million.

The ratio of net debt to equity (gearing) increased from 55.0% in the previous year to 73.1%. The equity ratio decreased to 37.1% (previous year 43.7%). The ratio of net debt to EBITDA increased slightly to 1.0x (previous year 0.9x). Based on average equity, the return on equity (ROE) came to 44.6% (previous year 42.7%). Average invested operating capital, comprising net working capital, property, plant and equipment, goodwill and intangible assets, amounted to CHF 2,724 million at the end of 2023 (previous year CHF 2,715 million). The return on invested capital (ROIC) decreased to 23.6% (previous year 26.5%), mainly due to the positive one-off tax effect in the previous year.

The Geberit Group held 1,889,965 treasury shares on 31 December 2023, which equals 5.4% of the shares entered in the Commercial Register. Of these, 1,120,750 (3.2% of the shares entered in the Commercial Register) originate from the ongoing share buyback programme, while the remaining 769,215 are earmarked for participation plans. The total number of shares entered in the Commercial Register stands at 35,189,082 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. The General Meeting of 19 April 2023 approved a 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 cancelled shares – originally 826,251 registered shares, of which 141,000 were already cancelled in June 2021 – originated from the share buyback programme 2020–2022.

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 are to be repurchased. The registered shares will again be repurchased via a second trading line on the SIX Swiss Exchange for the purpose of a capital reduction. Since the start of the programme, a total of 1,120,750 shares had been acquired at a sum of CHF 524 million by the end of 2023.

In 2023, CHF 424 million was distributed to shareholders as part of the dividend payment. As part of the ongoing share buyback programme, a total of 493,150 shares were acquired at a sum of CHF 238 million in the reporting year. As a result, CHF 662 million, or 106% of the free cashflow, was distributed to shareholders during 2023 as part of the dividend payment and the share buyback programme.