Geberit AG (0QQ2) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning, ladies and gentlemen, and welcome to Gebreit's half-year results conference call. Gebreit achieved convincing results in the first half of the year. Let me start, as usual, with the three key statements for H1. First, we achieved a net sales growth of 4% in local currencies despite a continued challenging market environment. Excluding one-time costs for the closure of our ceramics plant in Wesel, we kept operating margins stable. And third, we achieved an EPS growth of 6% if the plant closure costs and negative currency effects are excluded. Let me begin our review with a few comments on the top line for the first half of the year. Net sales increased by 2% to 1.66 billion Swiss francs, negatively affected by currency effects. Negative currency effects led to a net sales loss of 37 million Swiss francs, or minus 2%. In local currencies, net sales increased by 4%, driven by growth in almost all countries in Europe, and the continued strong development of new products. The top line growth was fully driven by volumes. The sales price effect was around zero in H1, since the positive effect of the sales price increase in the second quarter was compensated by a technically driven negative price effect in Q1, and selective price adjustments in Switzerland due to the strengthening of the Swiss franc over the last years. This brings me to the regional net sales development. All growth makers refer to growth in local currencies. In Austria, net sales increased by 10% thanks to strong growth with our new products. In Germany, net sales grew by 6% with double-digit growth in bathroom systems. In Benelux, net sales grew 6% with growth in both countries, Belgium and Netherlands. In Italy, net sales were up by 3% in a softening new build market. Net sales in Eastern E...