Geberit sales grow at fastest pace in 22 years on home improvement trend

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The logo of shower toilet and plumbing supplies manufacturer Geberit is seen at its headquarters in Rapperswil-Jona, Switzerland October 30, 2018. REUTERS/Arnd Wiegmann/File Photo

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ZURICH, Jan 13 (Reuters) – Geberit (GEBN.S) reported its strongest annual sales growth in 22 years on Thursday as customers stranded by the pandemic opted to upgrade their homes with its plumbing and bathroom products. bath.

The maker of ceramics, shower toilets and other building materials said annual sales rose 16% to 3.46 billion Swiss francs ($3.78 billion). Sales growth was the strongest since the company went public in 1999.

The company attributed the increase to people who upgraded their homes during the pandemic, as well as construction industry customers who restocked their inventory.

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Sales growth was helped by favorable comparisons to 2020, although annual figures were still 16.4% above pre-pandemic sales levels in 2019.

“The exceptionally good results seen since the second half of 2020 show that Geberit has emerged stronger from these difficult COVID-19 conditions and gained market share,” the company said.

“Despite considerable challenges along the supply chains, the group was able to ensure product availability.”

Geberit, whose products are used in new construction and renovation projects, is seen as an indicator of the health of the wider construction market.

During the fourth quarter, sales increased by 6.7% to 773 million Swiss francs. The Swiss company, which is due to report full-year results on March 9, said it expects an operating cash flow (EBITDA) margin of around 31%, the same level as a year earlier.

The construction sector has seen a recovery in 2021, helped by the return of demand which was suppressed last year, the reopening of construction sites and low interest rates supporting many programs.

Geberit is also struggling with higher raw material costs and introduced two additional price hikes last year to deal with them. The company uses metals like aluminum and copper, plastics and ceramics in its products. Read more

($1 = 0.9146 Swiss francs)

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Reporting by John Revill; Editing by Clarence Fernandez and Shounak Dasgupta

Our standards: The Thomson Reuters Trust Principles.

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