Geberit: EBITDA Margin Expected to Reach Upper End of its Guidance

Wide-moat Geberit expects to deliver an impressive 30% EBITDA margin for fiscal 2023, at the upper end of the 29%-30% guidance it previously provided. Geberit raised its prices by 8% during the year, underpinned by its brand reputation for reliability and close relationships with critical decision-makers for sanitary products, which has helped keep operating profit largely unchanged in fiscal 2023 in spite of a 5% decline in organic revenue. We expect the group’s EBITDA margin to improve marginally in fiscal 2024 from its impressive fiscal 2023 showing, due to higher volumes and further declines in raw material prices. Shares are trading in line with our CHF 510 fair value estimate, which we maintain.