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Geberit share information
Share price performance in the year under review
As with the previous year, the price of the Geberit share benefited substantially from the favorable climate on the equity markets. Beginning the year at CHF 201.40, the share price mostly kept pace with the Swiss Market Index (SMI) in the first half of the year. The share price disproportionately increased from the end of June to mid-August, before dropping back by almost the same extent following the release of the half-year figures and unfulfilled market expectations. The share price subsequently recovered during the reminder of the second half of the year, performing well above average in comparison with the SMI. The Geberit share was boosted in particular by the very good third-quarter figures, allowing it to reach new all-time highs of above CHF 270.00. Despite a temporary drop in the markets, this level was maintained. At the end of 2013, the share closed at CHF 270.50, which corresponds to a rise of 34.3% compared with the end of the previous year. In the same period, the SMI advanced by 20.2%. Viewed over the past five years, the Geberit share posted an annual average increase in value of 19.1% (SMI: +8.2%). The Geberit Group’s market capitalization reached CHF 10,224 million at the end of 2013.
The Geberit shares are listed on the SIX Swiss Exchange, Zurich.
At the end of 2013, the free float as defined by SIX was 100%.
Given a normal market environment, Geberit can achieve solid free cashflows, which are either used to invest into organic growth, to pay back debts, applied toward any acquisitions or distributed to shareholders. The capital structure is prudently maintained and the company strives for a solid balance sheet structure with a buffer of liquidity. On the one hand, this policy guarantees the financial flexibility necessary to achieve growth targets, and on the other hand it offers investors security. Surplus liquid funds are distributed to shareholders. Geberit continued this shareholder-friendly distribution policy last year as well.
Over the last five years, around CHF 1.6 billion has been paid out to shareholders in the form of distributions or share buybacks. During the same period, the price of the Geberit share has risen from CHF 113.10 at the end of 2008 to CHF 270.50 at the end of 2013.
The Board of Directors will propose to the General Meeting of Geberit AG on April 3, 2014, a distribution of CHF 7.50, an increase of 13.6% over that of 2013. Unlike in previous years, the distribution will be paid entirely as a regular dividend. The payout ratio of 65.1% of net income is in the upper range of the 50 to 70% corridor, which was increased by the Board of Directors as a result of the reassessment of the use of liquid funds at the beginning of 2011. Subject to the shareholders’ approval, the distribution will be paid on April 10, 2014. Furthermore, the Board of Directors decided to initiate a share buyback program. Over a period of two years, shares amounting to a total of a maximum of 5% of the share capital recorded in the Commercial Register will be repurchased via a separate trading line, less withholding tax, and retired by means of a capital reduction. Based on the closing price of Geberit registered shares on March 6, 2014, the value of the shares to be bought back is approximately CHF 530 million.
The share buyback program launched by the Board of Directors of Geberit AG at the beginning of 2011 was concluded on December 20, 2012, earlier than planned. In total, 2,048,578 registered shares – in the amount of CHF 390,172,725 and corresponding to 5.28% of the share capital registered in the Commercial Register at that time – were repurchased as originally planned. The share buyback program was conducted via a second trading line set up especially for this purpose. The average purchase price per share was CHF 190.46.
The General Meeting of April 4, 2013 approved a capital reduction in the amount of the shares repurchased in 2012. The 1,022,578 shares were canceled with effect from June 2013 following expiry of a two-month deadline and the publication of three notices to creditors in the Swiss Official Gazette of Commerce. The total number of shares entered in the Commercial Register now stands at 37,798,427 shares. The shares repurchased in 2011 as part of the buyback program had already been canceled in 2012 by resolution of the General Meeting of April 4, 2012.
Geberit publishes current and comprehensive information simultaneously for all market participants and interested parties on the Internet (→ www.geberit.com), including ad-hoc announcements. Among other things, the current version of the investor presentation is available on the Internet at any time. In addition, interested parties may add their names to a mailing list (→ www.geberit.com/mailinglist) in order to receive the most recent information relating to the company.
CEO Albert M. Baehny, CFO Roland Iff and Head Corporate Communications & Investor Relations Roman Sidler are in charge of the ongoing communication with shareholders, the capital market and the general public. Contact details may be found on the Internet in the relevant sections. Information relating to Geberit is provided in the form of regular media information, media and analysts’ conferences as well as financial presentations.
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