Geberit achieved 9.8% less sales and earned 13.9% less in the first half of the year. All 3 categories did worse. Regionally, business was only stable in Switzerland with sales of CHF 149.8 million. But even in the main market of Germany, sales only fell by 3.2% to CHF 494.6 million. The operating margin before depreciation (EBITDA) improved from 30.8 to 31.5% at the group level. Cost-cutting measures, flexibility in production and logistics, lower costs for raw materials and price increases all helped.
The results have exceeded market expectations and show that the business model is crisis-proof. The financing is also solid. The group has cash and cash equivalents of CHF 350 million and, if necessary, can fall back on a loan of CHF 500 million. Acquisitions are not planned, but a new share buyback program is to be launched in the second half of the year. Almost all construction sites have been back in operation since May, and demand is picking up.
Should Investors Sell Right Now? Or is it worth joining Geberit?
The outlook was correspondingly confident. The Group expects the construction industry to normalize further, but nevertheless expects slightly lower sales in the second half of the year than in the previous year. The EBITDA margin will also not quite reach the previous year’s record of 29.3%. Because normalization goes hand in hand with rising personnel and marketing costs.
Should Geberit investors sell immediately? Or is it worth getting started?
How will Geberit develop further now? Is your money safe in this stock? You will find the answers to these questions and why you need to act now in the current analysis of the Geberit share.
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