Procurement

Supply chains stable, material prices still high

The Purchasing department at the Group is responsible worldwide for procuring raw materials, semi-finished and finished products, commercial products, and services. Besides minimising costs, the primary purpose of comprehensive supplier management is to safeguard the supply of all the necessary materials and services in the agreed quality and at the agreed time.

In the reporting year, freight costs were exposed to certain fluctuations. This was due to the tariffs connected to the political situation in the USA, which primarily affected individual routes in the Asian region. However, the availability of raw materials and components was good and delivery times remained at a normal level.

The prices of direct materials fell slightly in the reporting year and were generally lower than in 2024. Plastics profited from the drop in oil prices, while steel prices also fell thanks to high supply levels and low demand. Meanwhile, the prices of non-ferrous metals (particularly copper) increased. This was also the case for packaging materials. On the whole, purchase prices were still at a high level from a historic perspective. Compared to the previous year, the impact of the price changes on the income statement was -1.6% in local currencies or CHF -14 million.

Energy prices in the first six months of 2025 were significantly higher than in the previous year and remained above the previous year’s level on an annual average despite a slight easing in the second half of the year. Overall, energy prices rose by 9.7% year-on-year in local currencies.

Compliance with Code of Conduct for Suppliers checked

All of Geberit’s suppliers are obligated to maintain comprehensive standards. This applies to quality, socially responsible and healthy working conditions, human rights as well as environmental protection and the commitment to fair business practices. The basis for the cooperation is the Code of Conduct for Suppliers. This was fully revised and updated in the reporting year. It is aligned with the principles of the United Nations Global Compact and is available in 15 languages. As of the end of the reporting year, more than 95% of the direct purchasing volume was attributable to suppliers who had signed the code.

Corporate Purchasing and Sustainability jointly ensure that the standards found in the Code of Conduct are upheld by conducting regular EHS (Environment, Health and Safety) audits. The number of audits made and their content are defined with the help of a risk matrix. The goal of these audits is to check on site compliance with the Code of Conduct and local legal requirements regarding environmental aspects, occupational health and safety and social responsibility including human rights. The audits are carried out by an independent service provider. Appropriate measures are then initiated where required. During the reporting year, ten external EHS audits (previous year seven EHS audits) were carried out at suppliers in the area of procurement.

Supplier Integrity Line

Introduced in 2017, the Supplier Integrity Line from Geberit allows suppliers to anonymously report any violations of the guidelines set out in the Code of Conduct for Suppliers by Geberit employees or by competitors. The hotline is free of charge for users and is operated by an independent service company in a total of 30 languages. Violations can also be reported online via the Geberit Group website. No reports of violations were received during the reporting year.

The “Integrity Next” software was introduced in the reporting year to supplement the Integrity Line. This significantly simplifies and improves the monitoring of supplier responsibility and ensures higher levels of transparency in terms of compliance with the Code of Conduct. “Integrity Next” represents 85% of the purchasing volume for direct materials.

Due diligence obligations according to the Swiss Code of Obligations (CO Art. 964a ff.)

Part of risk management in procurement also involves checking adherence to the due diligence obligations described in the Swiss Code of Obligations, which are aimed at preventing child labour and the use of conflict materials. Geberit does not directly import conflict minerals (tin, tantalum, tungsten, gold) into the EU or Switzerland, nor does it process such materials. As a result, the company is not deemed to be an “importer” within the meaning of EU Regulation 2017/821 or Art. 964a ff. of the Swiss Code of Obligations. Furthermore, there were no suspicions of cases of child labour in the supply chain. For further information, see Governance matters – Performance 2025.