Results

Convincing operating results

In a continuing challenging market environment, operating margins were slightly below the previous year’s level – this includes the one-off costs for the closure of a German ceramics plant, which was announced in January 2025, of EUR 18 million (60 basis points) at the EBITDA level and EUR 24 million at the EBIT level. Excluding these one-off costs, the EBITDA margin would have increased by 40 basis points. The pleasing volume growth, increases in efficiency and the slightly lower direct material costs compared to the previous year had a positive impact on margins. Wage inflation, higher energy prices, investments in growth initiatives in selected developing markets, various digitalisation and IT projects and negative currency developments had a reducing impact.

In total, the Geberit Group posted an operating cashflow (EBITDA) of CHF 931 million, corresponding to an increase of 2.0%; after currency adjustments, an increase of 5.3% was achieved. As a result of the aforementioned one-off costs, the EBITDA margin was slightly below the previous year’s level of 29.6% at 29.4%. Net income reached the prior-year level at CHF 598 million (+0.1%), corresponding to a return on net sales of 18.9% (previous year 19.4%). If the one-off costs were excluded, net income would amount to CHF 617 million, with a return on net sales of 19.5%. Compared to the developments recorded in net income, earnings per share recorded a more positive development of +0.5% to CHF 18.15 (previous year CHF 18.06) due to the positive effects of the share buyback programme; excluding the one-off costs and in local currencies, earnings per share would be CHF 19.59, corresponding to a significant increase of 8.5%.

Operating expenses again shaped by efficiency and cost discipline as well as one-off costs

All items within operating expenses were positively affected by currency effects. The cost of materials decreased by -0.5% to CHF 834 million, with the ratio to net sales decreasing from 27.1% in the previous year to 26.4%. The prices of direct materials fell slightly in the reporting year and were generally lower than in 2024. 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. Tariff-related salary increases and the one-off costs for the closure of a German ceramics plant resulted in an increase in personnel expenses of 6.2% to CHF 834 million, which equates to 26.4% of net sales (previous year 25.5%). Other operating expenses net increased by 2.7% to CHF 565 million. This was largely due to the increased outbound freight costs and higher energy, maintenance and administration costs, which are included under this item. Depreciation increased by 11.0% to CHF 145 million as a result of higher investments and the one-off costs for the closure of a German ceramics plant. The amortisation of intangible assets decreased by 9.0% to CHF 18 million.

The net financial result was CHF -33 million (previous year CHF -24 million). This decrease was due to strengthening of the Swiss franc. Tax expenses decreased by CHF 3 million to CHF 137 million; accordingly, the tax rate was slightly below the previous year at 18.6% (previous year 19.0%).

Substantial increase in free cashflow

Free cashflow developed positively, with an increase of 7.4% to CHF 659 million (previous year CHF 613 million). The main reasons for the increase were the higher operating cashflow and the lower investment volume compared to the previous year (see also Consolidated financial statements Geberit Group, Note 27). The free cashflow margin was 20.8% (previous year 19.9%). CHF 503 million, or 76% of the free cashflow, was distributed to shareholders during the reporting year as part of the dividend payment and the share buyback programme.