Geberit Surpasses Q2 Forecasts Driven by Sales Growth and Cost Efficiencies
Geberit’s Second Quarter Performance and Outlook
Strong Q2 Results Amid Market Challenges
ZURICH, Aug 19 (Reuters) - Geberit reported better-than-expected second quarter results on Wednesday as the Swiss plumbing materials supplier overcame higher raw material costs with price increases and cost cuts.
EBITDA and Sales Growth
The company, whose products include bathroom ceramics and piping, said its earnings before interest, tax, depreciation and amortization (EBITDA) rose 3.9% to 246.1 million Swiss francs ($303.5 million).
The figure beat forecasts for 238 million francs in a poll of analysts gathered by Visible Alpha. Sales rose 6.6% to 838 million francs, ahead of forecasts for 810 million francs.
Managing Raw Material Costs
Geberit said it had faced a "significant" increase in raw material costs, particularly for plastics and metal, which it is offsetting with price increases, raised efficiencies and higher sales volumes.
Market Response
The company's shares were indicated 2.9% higher in premarket activity in Zurich.
Full-Year Outlook and Market Expectations
In its first detailed full-year outlook, Geberit said it expected sales to rise by 5% to 6% when measured in local currencies, and a profit margin similar to 2025 levels.
The company said it still expected slight growth in the European construction market this year but no widespread recovery yet.
Additional Information
($1 = 0.8109 Swiss francs)
(Reporting by John RevillEditing by Ludwig Burger)
