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Business and Financial Review
Operating expenses under control
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As a result of the Mapress acquisition, sales deductions increased by +30.4% to MCHF 253.4. However, at 13.3% (prior year 13.8%), the percentage share of Group sales deductions slightly declined.
Total operating expenses in 2004 amounted to MCHF 1,348.3 (prior year MCHF 1,003.2), an increase of +34.4%. As a percentage of sales, operating expenses further declined from 71.5% in 2003 to a 2004 level of 70.7%. The absolute increase in operating expenses was mainly due to the acquisition of the Mapress Group. However, as a result of consolidating the Mapress expense structure, which slightly differed from that of Geberit, variations occurred within the individually consolidated operating expenses.
Cost of materials amounted to MCHF 570.9, a +43.9% rise against the prior year. As a percentage of sales (29.9%), cost of materials rose markedly above prior year levels of 28.3%. A major reason for the increase was the higher material content of the Mapress products. In addition, the first consolidation of the Mapress Group reflected a one-time charge of MCHF 11.0. Net of the effects of the Mapress acquisition, cost of materials as a percentage of sales amounted to 27.6%. The impact of rising raw material costs was largely controlled by fairly long-term agreements, global sourcing and selective price adjustments. Personnel expenses rose under proportionally, or by +27.6% to MCHF 441.5.
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. |
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| © 2005 Geberit AG - All rights reserved. Please read our legal information. |
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Jean Tinguely:
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