PDF (2.63 MB) - Geberit International AG

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To our Shareholders
Ladies and gentlemen,
2004 was the most successful year of our corporate
history. It fulfilled our high expectations and was marked
by an acquisition-related surge in growth combined
with strong organic sales growth.
In 2004, the Geberit Group generated consolidated sales
of CHF 1,906.8 million. This corresponds to an increase
of CHF 502.9 million or 35.8% above 2003 level, of
which 9.5% was organic and 26.3% was due to acquisition-related
growth. At constant exchange rates, the
organic growth rate was 8.9%.
The operating profit rose by 47.8% to CHF 305.1 million
and net income increased by 31.5% reaching a new
record level of CHF 193.3 million.
Following our Mapress acquisition, the Geberit Group
maintained both a strong financial and equity base
underscored by a solid balance sheet structure. The
2004 year end equity ratio was a sound 43%.
There are many reasons for the substantial growth and
high profitability of our activities. Major success factors,
in addition to the important contribution of the newly
acquired Mapress activities, were the company’s strong
innovation and market acceptance, most notably among
Geberit’s installation, flushing and supply systems. Once
again, the Company’s strong position in the European
renovation market proved its worth. Even though a
second half softening occurred when compared with
2003’s extraordinarily high figures, a significant annual
organic growth was recorded in almost all market regions.
Against the backdrop of the Company’s satisfactory
development, we would like to further increase our
shareholder distributions. The Board of Directors will
propose a dividend of CHF 22 per share at the general
meeting.
In addition, 2004 was also a year of important personnel
decisions. The generation change in the Group
Executive Board, which had been announced for some
time, occurred as planned. A competent, high-quality
and internationally experienced management team,
headed by new CEO Albert M. Baehny, took over as of
1 January 2005. This team combines profound internal
know-how with fresh external perspectives. Three
out of the four members of the Group Executive Board
were recruited from among our own ranks, thereby
safeguarding continuity.