GEBERIT AG MEDIA RELEASE
First information on the year 2016
Very strong fourth quarter
Geberit AG, Rapperswil-Jona, 17 January 2017
The Geberit Group's sales development in 2016 was shaped by a positive environment in the construction industry and the integration of the ceramics business. Overall, net sales increased by 8.3% to CHF 2809.0 million. Adjusted for currency effects and in organic terms, net sales rose by 6.4%. In terms of results, Management expects an adjusted operating cashflow margin of around 28.5 percent for the entire year. The financial statements and annual report for 2016 will be released at the analyst and media conference on 14 March 2017.
Consolidated net sales
In 2016, net sales for the Geberit Group increased by 8.3% to CHF 2809.0 million. This increase includes positive currency effects of CHF 18 million. Adjusted for currency effects, this corresponds to an organic* increase of 6.4%. This sales growth was attributable to convincing developments in many markets and a reduction in order backlogs in the shower toilet business that particularly took effect in the third quarter. The situation in the construction industry was also better in several markets compared to the previous year. The sales growth was additionally supported by sales synergies from the integration of the ceramics business that were achieved earlier than expected.
Net sales in the fourth quarter reached CHF 636.6 million, which is equivalent to an increase of 2.5%. In local currencies and in organic terms, growth amounted to 6.3%.
Net sales by market and product area
Currency-adjusted and in organic terms, Europe, the largest region, posted growth of 6.8%. Double-digit growth rates were recorded in Austria (+12.3%), the Nordic Countries (+11.1%) and Central/Eastern Europe (+10.4%), with all other European markets/countries also posting substantial growth: the Benelux Countries by +7.9%, the Iberian Peninsula by +6.5%, Switzerland by +6.4%, the United Kingdom/Ireland by +5.4%, France by +4.8%, Germany by +4.7% and Italy by +3.9%. Sales development for the non-European regions Middle East/Africa (+3.5%), America (+0.2%) and Far East/Pacific (+4.3%) - although slightly improved compared to the end of the third quarter - were below average.
In the product areas, Sanitary Systems posted stronger currency-adjusted growth with 9.2% than Piping Systems with 2.5%. Sanitary Ceramics improved by 4.9% for the year as a whole.
Operating margins up on previous year
In the 2016 financial year, the acquisition, divestment and integration costs and income relating to the Sanitec acquisition - although much lower compared to the previous year - will once again have an impact on the Geberit Group's results. To improve comparability, adjusted figures are provided and commented on. Due to synergies from the integration of the Sanitec business, volume growth and lower prices for raw materials, Management expects an adjusted operating cashflow margin (EBITDA margin) of around 28.5 per cent for the year as a whole - a figure that is significantly up on the previous year.
Please visit our website www.geberit.com/en for additional information. The complete financial statements and annual report for 2016 will be released at the analyst and media conference in Zurich on 14 March 2017.
* Organic: adjusted for the net sales from January 2016 from Sanitec and the net sales from the second half of 2015 from the sold Koralle Group (net CHF 32 million)
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