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Depreciation increased by only +0.8% to MCHF 84.5.
This was due to a lower depreciation expense at
Mapress and the basis effect of a one-time depreciation
charge of MCHF 11.6 in the prior year. With respect to
other operating expenses, an increase by +37.2% to
MCHF 188.0 mainly resulted from acquisition effects.
Amortization of goodwill and other intangible assets
rose to MCHF 63.4 based on the Mapress acquisition.
Increase in net income
In the year under review, Geberit generated a net income
of MCHF 193.3 (prior year MCHF 147.0). This corresponds
to a slightly under proportional increase of +31.5 %.
Net financial expenses increased by +28.2 % to MCHF
30.0, a result of the Mapress acquisition and currency
losses.
Tax expenses rose markedly from MCHF 34.1 to
MCHF 81.1. On the one hand, a positive non-recurring
effect was recorded in the prior year as tax provisions
of MCHF 11.3 had been released. On the other hand,
due to the Mapress acquisition, the taxable profit share
in Germany rose substantially in 2004. Furthermore,
also a result of the acquisition, the share of expenses
that are non-deductible for tax purposes increased.
Due to these effects, the Group’s effective tax rate increased
from 18.6 % to 29.5 % for the year under
review.
High cashflow level
In 2004, the net cashflow of MCHF 351.7 exceeded the
prior year figure by MCHF 80.4 (+29.7%). This corresponds
to a cashflow margin of 18.4 % (prior year 19.3 %).
The increase in net cashflow and the continued positive
effects of net working capital, led to a MCHF 67.4
(+32.7 %) free cashflow increase from a strong prior
year figure to MCHF 273.4. Out of this free cashflow, distributions
to shareholders of MCHF 69.6 were made
and funds were provided to finance the Mapress acquisition.
Sound equity base and balance sheet
structure
Thanks to the free cashflow, which was again at a very
high level, the Geberit Group’s balance sheet integrated
the Mapress acquisition very well as of year-end 2004.
The increase in debt of MCHF 238.1 to MCHF 535.3
was due to the funding of the acquisition. As a result,
net debt increased by MCHF 337.8 to MCHF 453.7.
Debt
(in MCHF)
12/04 12/03 12/02
Long-term debt 531.7 293.6 367.5
Total debt 535.3 297.2 432.0
Cash and cash equivalents 81.6 181.3 137.5
Net debt 453.7 115.9 294.5
Business and Financial Review 15