Convincing currency adjusted net sales growth
Consolidated net sales in 2019 increased by 0.1% to CHF 3,083 million. This total growth comprised growth in local currencies of +3.4% and a negative foreign currency effect of -3.3%. The convincing currency-adjusted net sales growth was achieved in a challenging, yet generally positive environment in the construction industry – particularly as a result of successful market activities.
The currency exchange losses contained in net sales amounted to CHF 102 million. In 2019, 63% of net sales were generated in euros, 10% in Swiss francs, 5% in US dollars, 4% in British pounds and 18% in other currencies.
Net sales development 2010–2019
The following changes in net sales in the markets and product areas are currency-adjusted.
Mostly positive performance in the individual markets
Net sales in Europe, the largest region, rose by 3.4% in 2019 as a whole. Strong growth was achieved in the Benelux countries (+7.4%), United Kingdom/Ireland (+5.3%), Austria (+5.2%), the Iberian Peninsula (+4.9%), Switzerland (+3.9%) and Germany (+3.2%). Eastern Europe (+2.9%), the Nordic Countries (+2.6%) and Italy (+1.3%) also grew. On the other hand, France declined slightly (-0.4%). Outside Europe, the greatest net sales growth was recorded in the Far East/Pacific region (+9.0%), whereas the Middle East/Africa region expanded slightly (+1.3%) and America was only slightly higher than in the previous year (+0.5%).
Net sales by markets/regions in 2019
Piping systems with the strongest growth
In the product areas, net sales for Installation and Flushing Systems climbed by +4.5%. As in the previous year, this growth was driven by two factors: firstly, Installation and Flushing Systems saw accelerated growth in the European expansion markets as a result of synergies from the integration of the ceramics business. Secondly, Geberit was also able to gain market shares in Central European markets through the sale of higher-added-value products that had been launched in earlier years.
At +5.8%, Piping Systems was the product area with the greatest growth. This above-average performance was underpinned by Building Drainage Systems as well as Supply Systems, with the former particularly supported by the products that had been launched in recent years.
Net sales for the Bathroom Systems product area were unchanged over the previous year (+-0.0%). The shower toilet business continued to perform strongly. This product area suffered from the weak market environment in the Nordic Countries, which are a disproportionately important market for this product area, negative effects from the switch to the Geberit brand in local ceramic markets and the exit from low-margin ceramic business.