Convincing sales growth
Cumulative sales in 2014 increased by 4.9% to CHF 2,404.4 million. With a growth of 6.4% in local currencies, the increase is slightly above the medium-term growth expectation of 4 to 6%. The total growth figure is made up of a volume effect of +5.0%, a price effect of +1.4% and a negative foreign currency effect of 1.5%.
In spite of the decline in sales experienced between 2008 and 2011, average annual growth for the last ten years in Swiss francs was 2.3%.
The following changes in sales figures refer to local currencies.
Growth in all regions
Europe recorded a currency-adjusted increase in sales of 5.9%, with all markets reporting increases. Double-digit growth was posted in the United Kingdom/Ireland (+19.8%) and Central/Eastern Europe (+11.7%). Switzerland (+6.6%) and Germany (+6.0%) also reported satisfying sales growth. Increases were also recorded in the Benelux Countries (+4.0%), France (+3.0%), the Iberian Peninsula (+3.0%), Italy (+2.7%), Austria (+2.5%) and the Nordic Countries (+2.4%). Despite the ongoing unfavorable conditions in the public sector – an area of importance to Geberit in this region – America posted growth of 6.4%. The Middle East/Africa (+21.2%) and Far East/Pacific (+12.8%) regions reported significant sales growth.
Slightly stronger growth in Sanitary Systems
Sales for the Sanitary Systems product area amounted to CHF 1,364.3 million, corresponding to growth of 6.7%.
Sales for the Installation Systems product line, at 36.5% of Group sales the most important product line, rose by 7.5% in local currencies. Drywall elements and – with double-digit growth rates – designer actuator plates made a decisive contribution to this above-average success. Growth of 7.2% was posted by the Cisterns and Mechanisms product line, which accounts for 11.1% of total sales. Sales were largely boosted by the strong growth of the AquaClean shower toilet – with the newly introduced AquaClean Sela model selling very well in particular – and the Monolith sanitary module for WCs, which is succesful in more and more markets. Sales of filling and flush valves recovered from the slump experienced in the previous year, mainly because of the good performance of the generally volatile OEM business. In contrast, sales of traditional exposed cisterns stagnated as a consequence of Geberit’s efforts over many years to convert to concealed solutions. Sales for the Faucets and Flushing Systems product line, which accounts for 5.1% of total sales, increased by 3.3% in 2014. The trend reversal compared with the previous year was attributable to a slight recovery of the market conditions experienced by the US subsidiary Chicago Faucets in business with schools and hospitals, as well as the positive sales growth of urinal flush controls. Sales for the Waste Fittings and Traps product line rose slightly by 2.9%. The share of total Group sales came to 4.0%. Positive growth rates were seen in shower drains and traps for urinals and WCs, while bathtub drains and traps for washbasins and bidets stagnated.
Sales for the Piping Systems product area were CHF 1,040.1 million. The increase was 6.0%, meaning growth was slightly below that of Sanitary Systems – unlike in the previous year.
The Building Drainage Systems product line posted the strongest growth of all product lines at 9.1% in local currencies. The share of total sales reached 14.6%. The Silent-PP and Silent-db20 sound-absorbing drainage systems did well and the business with PE drainage systems also picked up again after having slumped in the previous year. The Supply Systems product line posted 4.5% growth. The contribution of this product line, which is the second largest measured by Group sales, came to 28.7%. The Mapress Stainless Steel and Copper product ranges delivered convincing sales increases in particular. On the other hand, Mapress Carbon Steel and the Mepla multilayer piping system experienced below-average growth.