GEBERIT AG 9M 2020 Results
Updated version from 29.10.2020; 08:45
Christian Buhl, CEO
Roland Iff, CFO
29 October 2020
Agenda
- Q3 2020 key figures
- 9 months 2020 results
- Outlook
SLIDE 2
9M 2020 RESULTS OCTOBER 29 2020
Q3 2020 - Strong net sales and EBITDA margin growth
Net sales growth (in CHF)
+5.3%
EPS growth (in CHF)
+11.6%
Net sales growth (currency adj.)
+8.5%
Share buyback (in CHF)
4 million
8'000 shares bought back in Q3
2020 (new buyback program)
EBITDA margin
33.2%
+250 bps vs PY
COVID-19 impact
- Catch-upeffects from lockdown in Q2
- Low marketing & administrative expenses due to COVID-19 related restrictions
SLIDE 3
9M 2020 RESULTS OCTOBER 29 2020
Q3 2020 - Net sales development by regions and product areas
Net sales in million CHF | Variance to PY in CHF | Variance to PY in c.a. | |
Geberit Group | 794 | +5.3% | +8.5% |
By region | |||
Europe | 726 | +6.9% | +9.6% |
Far East / Pacific | 25 | -12.4% | -7.1% |
America | 25 | -0.9% | +6.2% |
Middle East / Africa | 18 | -14.4% | -4.3% |
By product area | |||
Installation & Flushing Systems | 294 | +7.0% | +10.4% |
Piping Systems | 239 | +0.3% | +2.9% |
Bathroom Systems | 261 | +8.3% | +11.8% |
SLIDE 4
9M 2020 RESULTS OCTOBER 29 2020
Q3 2020 - Net sales development by markets
Europe
Inter-
national
Share of | Net sales, | |||||||
net sales | CHF million Net sales growth, % c.a. | |||||||
Total 8.5% | ||||||||
Germany | 33% | 255 | ||||||
12.4% | ||||||||
Switzerland | 10% | 80 | 6.8% | |||||
Eastern Europe | 9% | 75 | 8.4% | |||||
Nordics | 9% | 72 | 5.9% | |||||
Benelux | 7% | 57 | -3.5% | |||||
Italy | 7% | 57 | 24.1% | |||||
Austria | 7% | 53 | 12.8% | |||||
France | 6% | 44 | 11.4% | |||||
United Kingdom / Ireland | 3% | 28 | 3.2% | |||||
Iberia | 1% | 6 | 7.1% | |||||
America | 3% | 25 | 6.2% | |||||
Far East / Pacific | 3% | 25 | -7.1% | |||||
Middle East / Africa | 2% | 18 | -4.3% | |||||
SLIDE 5
9M 2020 RESULTS OCTOBER 29 2020
Key figures Q3 2020
CHF million | Q3 2020 | Q3 2019 | % YoY |
Net sales | 794 | 754 | 5.3% |
EBITDA | 264 | 231 | 14.1% |
Margin | 33.2% | 30.7% | |
EBIT | 227 | 195 | 16.4% |
Margin | 28.6% | 25.9% | |
Net income | 189 | 171 | 11.0% |
Margin | 23.9% | 22.6% | |
EPS (CHF) | 5.29 | 4.74 | 11.6% |
Free cashflow | 280 | 241 | 15.9% |
Margin | 35.2% | 32.0% |
- Negative currency translation effect
- EBITDA margin improvement of 250 bps
- Acceleration of margin improvement in Q3 driven by
- Operating leverage from volume growth
- Lower raw material prices
- Low marketing and administrative expenses due to COVID-19 restrictions
- Higher tax rate due to corporate tax reform in Switzerland and positive one-time effect in PY
SLIDE 6
9M 2020 RESULTS OCTOBER 29 2020
Agenda
- Q3 2020 key figures
- 9 months 2020 results
- Outlook
SLIDE 7
9M 2020 RESULTS OCTOBER 29 2020
9M 2020 - Net sales decrease driven by currencies and improved profitability
Net sales growth (in CHF)
-5.0%
EPS growth (in CHF)
-5.5%
Net sales growth (currency adj.)
-0.4%
Share buyback (in CHF)
120 million
270'000 shares bought back in
9M 2020
EBITDA margin
32.1%
+130 bps vs PY
COVID-19 impact
- Negative impact since 2nd half of March, improvement since mid-May
- Catch-upeffect in Q3
- Intact supply chain
- No restructuring or material short-time work
SLIDE 8
9M 2020 RESULTS OCTOBER 29 2020
Net sales 9M 2020 - Substantial negative currency effect
In CHF million
Total variance: CHF -119 million (-5.0%)
2′381
9
110
2′262
Net sales | Growth | Currency | Net sales |
9M 2019 | in local currency | effect | 9M 2020 |
-0.4% | -4.6% |
SLIDE 9
9M 2020 RESULTS OCTOBER 29 2020
9M 2020 - Net sales by regions and product areas
Net sales in million CHF | Variance to PY in CHF | Variance to PY in c.a. | |
Geberit Group | 2'262 | -5.0% | -0.4% |
By region | |||
Europe | 2'079 | -3.8% | +0.7% |
Far East / Pacific | 65 | -20.1% | -14.5% |
America | 73 | -6.0% | -1.5% |
Middle East / Africa | 47 | -26.0% | -18.8% |
By product area | |||
Installation & Flushing Systems | 851 | -5.0% | -0.1% |
Piping Systems | 687 | -6.0% | -1.6% |
Bathroom Systems | 725 | -4.0% | +0.6% |
SLIDE 10
9M 2020 RESULTS OCTOBER 29 2020
9M 2020 - Net sales decline in countries with severe COVID-19 lockdown
Europe
Inter-
national
Share of | Net sales, | ||||||||
net sales | CHF million Net sales growth, % c.a. | ||||||||
Germany | 33% | 749 | Total -0.4% | 5.8% | |||||
Switzerland | 10% | 230 | 2.7% | ||||||
Nordics | 10% | 221 | 3.3% | ||||||
Eastern Europe | 10% | 218 | 3.7% | ||||||
Benelux | 8% | 187 | -0.9% | ||||||
Italy | 6% | 139 | -11.0% | ||||||
Austria | 6% | 135 | 4.8% | ||||||
France | 5% | 120 | -10.4% | ||||||
United Kingdom / Ireland | 3% | 64 | -22.1% | ||||||
Iberia | 1% | 16 | -12.9% | ||||||
America | 3% | 73 | -1.5% | ||||||
Far East / Pacific | 3% | 65 | -14.5% | ||||||
Middle East / Africa | 2% | 47 | -18.8% | ||||||
SLIDE 11
9M 2020 RESULTS OCTOBER 29 2020
Key figures 9M 2020 - Operational profitability above PY level
CHF million | 9M 2020 | 9M 2019 | % YoY |
Net sales | 2'262 | 2'381 | -5.0% |
EBITDA | 726 | 732 | -0.9% |
Margin | 32.1% | 30.8% | |
EBIT | 613 | 626 | -2.1% |
Margin | 27.1% | 26.3% | |
Net income | 504 | 536 | -6.0% |
Margin | 22.3% | 22.5% | |
EPS (CHF) | 14.06 | 14.88 | -5.5% |
Free cashflow | 454 | 498 | -9.0% |
Margin | 20.1% | 20.9% |
- Negative currency translation impact
- EBITDA margin increase despite COVID-19 driven sales decline
- Fast and targeted cost containment measures
- High flexibility in production and logistics
- Lower raw material prices
- Sales price increases
- Higher depreciation due to increased investments in previous years
- Increased tax rate due to corporate tax reform in Switzerland and positive one-time effect in PY
- Decline of free cashflow mainly driven by base effect
SLIDE 12
9M 2020 RESULTS OCTOBER 29 2020
EBITDA margin 9M 2020 - Increase of margin by 130 bps
+0.1%
32.1%
-0.2%
+1.8%
30.8%
-0.4%
EBITDA | Volume and | Price effects, | Other cost | Currency effect | EBITDA |
margin 9M 2019 | product mix effect | net | effects | margin 9M 2020 |
- Negative volume effect due to COVID-19 driven volume decline
- Positive net price effect due to lower raw material prices and price increases
- Positive other cost effects despite substantial sales decline due to fast and targeted cost containment measures and increased flexibility in operations
- Only minor negative currency effect due to effective natural currency hedge
SLIDE 13
9M 2020 RESULTS OCTOBER 29 2020
Agenda
- Q3 2020 key figures
- 9 months 2020 results
- Outlook
SLIDE 14
9M 2020 RESULTS OCTOBER 29 2020
Outlook Geberit 2020
- The outlook is based on the assumption of no second lockdown wave
- Net sales in local currencies 2020 slightly below 2019
- Full year EBITDA margin 2020 above previous year
SLIDE 15
9M 2020 RESULTS OCTOBER 29 2020
Disclaimer
While Geberit is making great efforts to include accurate and up-to-date information, we make no representations or warranties, expressed or implied, as to the accuracy or completeness of the information provided in this handout and disclaim any liability for the use of it.
The statements in this presentation relating to matters that are not historical facts are forward-looking statements that are not guarantees of future performance and involve risks and uncertainties, including but not limited to: future global economic conditions, foreign exchange rates, regulatory rules, market conditions, the actions of competitors and other factors beyond the control of the company.
All financial information included is unaudited and is prepared under the same recognition and measurement principles applied for the audited annual financial statements.
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9M 2020 RESULTS OCTOBER 29 2020
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Geberit AG published this content on 29 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 October 2020 09:14:02 UTC
