Geberit profit falls on higher costs, outlook unclear
Reuters
Published Mar 08, 2023 06:11
Updated Mar 08, 2023 09:01
ZURICH (Reuters) -Swiss plumbing supplier Geberit on Wednesday reported a drop in 2022 results as higher raw materials costs weighed, and said a challenging global backdrop made its outlook for this year uncertain.
The maker of bathroom ceramics and piping saw shareholders' annual profit drop to 706 million Swiss francs ($749 million)from 756 million francs a year earlier.
That figure beat analyst forecasts for 668 million francs as it cut investments in property, plant and equipment, but operating profit (EBIT) of 755 million francs missed forecasts of 767 million.
At 0830 GMT, its shares were down 1.75%.
Geberit's raw materials costs rose 19% last year and its energy bill doubled. It partly offset that by raising prices four times during 2022.
With the construction industry's challenging prospects and supply chains still disrupted, the company's objectives for 2023 were "strategic stability and operational flexibility", it said.
"As a result of the ongoing geopolitical uncertainties and macroeconomic risks, it is very difficult to provide an outlook".
Analysts at Zuercher Kantonalbank said that while the company had reaffirmed its mid-term targets of sales growth of 4-6% and an EBITDA margin of 28-30%, "it is unclear if these also apply to the current year".
In January Geberit reported a 2% dip in annual sales. The company, whose products are used in new-build and renovation projects, had also previously warned of a challenging European market in 2023 as a home improvement trend wanes.
Baader Helvea Equity Research said investors had "probably been hoping for an outlook" for 2023 from Geberit.
Gaining market share across its business also remained a priority, it said on Wednesday.
($1 = 0.9430 Swiss francs)
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Written By: Reuters
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