Geberit AG (0QQ2) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Thank you for the introduction and good morning ladies and gentlemen. Welcome to our Q1 results conference call. Geberit had a successful start into the year with strong results. Let me start with the key statements for Q1. First, we achieved the mid single digit net sales growth despite one working day less. And second, We kept operating margins stable on all levels of the P&L, excluding one-time costs for the closure of our ceramics plant in Wesel, announced in January this year. We booked in the first quarter 14 million Swiss francs one-time costs for this site closure, 12 million on OPEX and 2 million on depreciation level. Let me now comment on our net sales development in more detail. Net sales grew by 5%, both in Swiss franc and local currencies, to 878 million Swiss francs. This growth was fully driven by volume and a slightly negative price effect on net sales price level. The small negative price effect on net sales level was caused by two factors. First, the technical reason. We increased sales prices as of April as announced. However, we increased customer bonuses already as of January this year as this is regular market practice. This difference in timing led to a slight negative price effect on net sales level in Q1. Secondly, we selectively adjusted prices for selected product categories in Switzerland this year due to the appreciation of the Swiss rank over the last years. The strong volume growth in Q1 was driven by a the strong development of new products and b pre-buying by wholesalers in anticipation of the April sales price increase. We come now to the regional development. All growth figures refer to growth in local currencies. In Europe, net sales increased by 5%. Net sales increased in all sub-regions except Western Europe, which was negativel...