Solid sales growth
Cumulative net sales in 2015 increased by 24.2% to CHF 2,593.7 million. Total growth comprised organic growth in local currencies of +2.7%, a foreign currency effect of -9.6% and an increase of +31.1% due to the Sanitec acquisition. The currency-adjusted organic growth of +2.7% comprised a volume effect of +2.8% and a price effect of -0.1%, the price effect being significantly influenced by the currency rebate introduced in the Swiss market at the beginning of 2015.
From the start of February 2015, Sanitec's product range contributed CHF 649 million to the Group's net sales. Over the entire year, Sanitec posted a decline in net sales in local currencies of 2.2%.
In spite of the decline experienced between 2008 and 2011, average annual net sales growth for the last 10 years in Swiss francs was 4.2%.
The currency losses contained in net sales amounted to CHF 201 million, corresponding to a minus of 9.6%. In 2015, 63% of net sales were generated in euro, 5% in each of British pounds, US dollars and Swedish krona and 4% in Polish zloty.
The following changes in net sales in the markets and in the product areas are in local currencies and – except for the explanations relating to the product lines bathroom ceramics and ceramics complementary products – relate to the original Geberit unit.
Currency rebate has severe negative impact on Swiss market
The biggest region, Europe, grew by 2.5% overall. All European countries/regions posted positive growth - with the exception of Switzerland. Strong rates of growth were achieved by the Iberian Peninsula (+14.2%), United Kingdom/Ireland (+8.3%), the Benelux Countries (+7.5%), the Nordic Countries (+5.5%) and Germany (+4.7%). Central/Eastern Europe (+2.7%), Italy (+2.0%), Austria (+1.4%) and France (+0.2%) also grew. Switzerland (-8.3%) suffered from the 10% currency rebate introduced at the beginning of February, in response to the strong Swiss franc. Outside Europe, the Middle East/Africa region grew by +16.2% and America by +7.1%. The Far East/Pacific region experienced a decline of -4.1% due to the very weak market environment in China.
Stronger growth in Sanitary Systems
Net sales for the Sanitary Systems product area amounted to CHF 1,145.9 million, corresponding to growth of 4.2%.
Net sales for the Installation Systems product line, at 28.0% of Group sales the most important product line, rose by 5.3%. The drywall elements and - with double-figure growth rates - the high-quality actuator plates made a major contribution to the strongest growth of all product lines. Growth of 0.6% was posted by the Cisterns and Mechanisms product line, which accounts for 8.5% of total net sales. The delivery problems caused by the major market success of the newly-launched Premium shower toilet AquaClean Mera, coupled with a lack of orders for the previous model, had a dampening effect. In contrast, as in the previous year the development of the Monolith WC module and the filling and flush valves was very pleasing, despite a downturn in the volatile OEM business. Net sales for the Faucets and Flushing Systems product line, which accounts for 4.5% of total net sales, increased by 5.1% in 2015. The growth was partly attributable to the positive market environment at US subsidiary Chicago Faucets in the business with schools and hospitals. Net sales for the Waste Fittings and Traps product line rose by 3.9%. The share of total Group net sales came to 3.2%. Positive growth rates were seen in shower drains and traps for urinals and WCs, while bathtub drains and traps for washbasins and bidets experienced a decline.
Net sales for the Piping Systems product area were CHF 798.8 million. The increase was 0.7%, meaning growth was below that of Sanitary Systems – as was the case in the previous year.
Building Drainage Systems grew by 3.9%. The share of total net sales reached 11.0%. The Silent-PP sound-absorbing drainage system and the PE drainage system experienced positive development. The Silent-DB20 drainage system, however, stagnated. At -0.9%, the Supply Systems product line was the only product line that posted a decline in net sales. The contribution of this product line, which is the second largest measured by Group net sales, came to 19.8%. A negative market environment in markets that are important for this product line, such as Norway and Italy, coupled with a negative trend on the heating market were responsible for this decline.
The product lines Bathroom Ceramics and Ceramics Complementary Products, which were consolidated for the first time in February 2015, accounted for 18.4% and 6.6% of Group net sales respectively in the 11 months since the Sanitec business was integrated.