Geberit completes a share buyback and launches a new one

Geberit completes a share buyback and launches a new one
Geberit completes a share buyback and launches a new one

As announced on May 7, Geberit will begin a new share buyback program in the third quarter, lasting 2 years for a maximum amount of 300 million francs.

Geberit spent 600 million francs to buy back more than 1.26 million of its own shares, or 3.6% of the share capital of the sanitary installations specialist.

The repurchase was carried out on a separate trading line with a view to a capital reduction, said the Saint-Gallois group on Friday, which intends to cancel the repurchased securities. The operation, launched in June 2022, was planned for two years and provided with a maximum amount of 650 million francs.

As announced on May 7, Geberit will begin a new share buyback program in the third quarter, over a period of two years and for a maximum of 300 million francs. The operation will be carried out on a second trading line on SIX Swiss Exchange, again to reduce the company’s capital.

At the time, Stifel noted that this amount was less than half the previous one, while the company was operating in a difficult context, the rise in rates having halted or slowed down numerous construction sites in Europe.

Over the first three months of the year, Geberit’s turnover fell by more than 6% to 837 million francs, while net profit fell by 11% to 190 million francs.

Mirabaud recalls that “Geberit is committed to returning liquidity through share buybacks and dividends.” Here too, experts note that the new securities buyback program is less ambitious than the previous ones, but the latter were more important because the company aimed to increase the leverage on its balance sheet. This having reached a level deemed comfortable, the new program will follow the 100% distribution policy of the Rapperswil-Jona group.

Around 10:30 a.m., the stock lost 0.7% to 540.20 francs, in an SMI down 0.8%.

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