16th July 2020
Olivier Aeschlimann, Senior Financial Analyst
Geberit, the specialist in sanitary installations, has reported much better than expected second quarter sales. The construction sector has suffered the consequences of measures taken by governments to stem the pandemic in several European countries. The cancellation of trade fairs and shows has slowed business development over the semester. However, after a sharp drop in activity in March, a clear recovery has started from mid-May, opening up better prospects for the third quarter. Since May, all of the group’s factories are opened again. In spite of the fall in sales, production capacities have not been reduced and long term investments have continued to be made. Nevertheless, production has been made more flexible thanks to temporary work. The CEO believes that demand has almost returned to its pre-crisis level, but that we should not celebrate too quickly as the situation is still uncertain, the greatest danger being a second lockdown.