Results

Convincing operating results

Results in 2024 were impacted by the unfavourable currency situation. However, after currency adjustments, the operating results and earnings per share developed positively. While net income was negatively impacted by the higher tax rate due to the OECD minimum taxation law, it still reached the previous year’s level in local currencies. Despite the extremely challenging market environment, operating margins were only slightly below the previous year’s level. The higher sales volumes and lower direct material costs compared to the previous year had a positive impact. In contrast, the high levels of wage inflation in many countries had a negative impact. Furthermore, investments were made in various projects to strengthen the company’s market position. These included growth initiatives in selected developing markets, marketing expenses for the launch of new products and for celebrating the 150th anniversary of the Geberit Group, plus various digitalisation and IT projects.

Overall, operating cashflow (EBITDA) fell by 0.9% to CHF 913 million. However, after currency adjustments this corresponded to an increase of 2.7%. The EBITDA margin decreased by 30 basis points to 29.6%; after currency adjustments, it reached the level of the previous year. Operating profit (EBIT) decreased by 0.9% to CHF 762 million (currency-adjusted +3.2%), corresponding to an EBIT margin of 24.7% (previous year 24.9%). Net income decreased by 3.2% to CHF 597 million (currency-adjusted -0.2%), corresponding to a return on net sales of 19.4% (previous year 20.0%). The reason for the marked decline in net income compared to the operating results was the significantly higher tax rate, which was primarily driven by the OECD minimum taxation law in force since 2024. In terms of earnings per share, the positive effects of the share buyback programmes led to a smaller decline compared to the development of net income. Accordingly, earnings per share decreased slightly by 1.8% to CHF 18.06 (previous year CHF 18.39); in local currencies, this figure increased by 1.3%. 

Operating expenses shaped by efficiency and cost discipline

All items within operating expenses were positively affected by currency effects. The cost of materials decreased by -5.5% to CHF 838 million, with the ratio to net sales decreasing from 28.8% in the previous year to 27.1%. The prices of direct materials largely moved sideways in the reporting year and were generally lower than in 2023. Compared to the previous year, the impact of the price changes was -5.2% or CHF -47 million in local currencies. Mainly tariff-related salary increases resulted in an increase in personnel expenses of 4.8% to CHF 785 million, which equates to 25.5% of net sales (previous year 24.3%). Other operating expenses net increased by 4.4% to CHF 550 million. This was largely due to the increased maintenance and freight costs and higher marketing costs, which are included under this item. The latter rose, among other aspects, due to activities in connection with the 150th anniversary and the launch of the AquaClean Alba shower toilet. Depreciation decreased by 1.4% to CHF 131 million, while the amortisation of intangible assets remained at the previous year’s level at CHF 20 million.

The net financial result was CHF -24 million (previous year CHF -27 million). While a more positive financial result compared with the previous year and lower exchange rate losses had a positive impact, higher interest charges due to increased net debt and the generally higher interest rates had a negative impact. As previously mentioned, the significantly higher tax expenses were driven by the OECD minimum taxation law in force since 2024; these increased by CHF 16 million to CHF 140 million. This resulted in a tax rate of 19.0% (previous year 16.8%).

Free cashflow down slightly

Free cashflow decreased by 2.0% to CHF 613 million. The lower operating cashflow and a negative year-on-year development in net working capital were only partially compensated for by the lower investment volume (see also Consolidated financial statements Geberit Group, Note 27). The free cashflow margin reached 19.9% (previous year 20.3%). CHF 540 million, or 88% of the free cashflow, was distributed to shareholders during the reporting year as part of the dividend payment and the share buyback programme.