Sanitary Equipment

Market trends

The business development of the Sanitary Equipment Division was gratifyingly positive in the reporting year. Revenue increased from CHF 143.8 million in the previous year to CHF 145.0 million, which corresponds to a growth of 0.8%. When adjusted for currency, this resulted in a revenue growth of 4.0%. At CHF 17.0 million, EBITDA without one-time effects was 12.2% above that of the previous year (CHF 15.1 million). There were no one-time effects in the reporting year. In the previous year, EBITDA with one-time effects amounted to CHF 14.7 million and EBIT with one-time effects amounted to CHF 9.0 million. The EBIT without one-time effects was CHF 11.0 million in the reporting year and was thus 16.1% above the previous year (CHF 9.5 million).

Despite the COVID-19 pandemic, the division managed the exceptional year 2020 very well. Using its sophisticated ERP systems, it was able to keep the supply chain and internal processes stable. As a result, the division was even able to improve its earnings situation compared to the previous year.

While countries especially such as France, as well as Belgium and Austria, experienced considerable adverse effects from the COVID-19 pandemic due to partial closures of construction sites, the division's domestic markets in particular – Germany and Switzerland – proved surprisingly robust. Only the temporary closure of several plumbing exhibitions of the wholesale trade and the cancelled industry trade fairs hindered the normal course of business. The capacity utilisation in the plumbing trade, which is still very high, also had a limiting effect.

In this environment, the division held its own very well thanks to its broad-based strategic initiatives, such as intensive support for key accounts and project business, as well as the expansion of international business with a focus on Southern and Eastern Europe. Kermi Duschdesign launched an export offensive for this purpose, taking into account a country-specific adaptation and expansion of the product range. The division also placed special focus on the continuous expansion of its service offering. The reorganisation of service in Germany bore its first fruits and led to increased efficiency and even greater customer proximity. In Switzerland as well, the service offering is being continuously expanded, with a special focus on assistance and support for architects.

Digitisation was also a high priority in the reporting year. The division launched a project to introduce modern PIM software in order to more efficiently meet customers' significantly increased requirements for data quality and data volume. This naturally includes the comprehensive provision of BIM data. In addition, the division prepared the changeover to a cloud-based CRM software solution of the latest technology for target-oriented sales and property management. In addition, it successfully converted the central ERP system from "SAP R/3" to the more powerful "SAP S/4HANA" platform. Against the backdrop of the in-person trade fairs which were cancelled due to COVID-19, there was increased investment in digital marketing formats. Koralle, for example, provides a digital exhibition on its homepage in which the world of showers and bathtubs can be experienced virtually.

Cost effects that were achieved contributed to the positive division result: starting with internationally coordinated purchasing, through the positive effects of past investments in production and processes, to a high level of cost discipline and consistent implementation of a plan of measures. In the reporting year, groundbreaking investments were also initiated which further advanced the automation and process optimisation of production.

Products, technology, and innovation

Kermi Duschdesign presented the "White Line" birthday edition to mark its 44th shower stall anniversary. These are four walk-in models in a new, fresh white, soft look with modern sandblasted decors, among other things. In addition, innovative "LIGA" series models were introduced: The customer has a new choice regarding the arrangement of the fixed panel in the "LIGA" swing doors. In addition, Kermi introduced a floor-level, walk-in sliding version to the market which allows absolutely free access to the shower stall without any threshold.

Koralle also presented a number of new products, including the addition of the Koralle "S800", the free-standing side panel of the "X88 Free" series, and the extension of the Koralle "T400" cast mineral bathtub. September 2020 saw the sales launch of the new double series "SL510/SL515". With these new products, Koralle created innovative shower solutions and doors with numerous variations in a partially framed or frameless design, perfectly combining aesthetics with functionality.

This year, Kermi Duschdesign and Koralle were also delighted to receive several design awards.

Future-oriented innovations were established in the Bekon-Koralle product range. These were the newly introduced "S500Plus" and "S505Plus" series for frameless and partially framed sliding door solutions. These impress technically, functionally, and aesthetically with their high quality and score points with aboveaverage comfort.

At Bekon-Koralle, gluing competence plays an important role: "Koralle gluetech" is a new, seamless fastening technique that enables customised designs for many building situations – with or without a profile. The glass or the profile of the shower partition is glued securely and precisely to the wall and floor without drilling.

The "Modde 1" series from Baduscho offers convincing shower solutions for today's bathroom architecture. The purist design and architectural lines with emphasis on the horizontal ensure that the sliding doors with innovative magnetic guidance fit perfectly into any room concept.

The challenges of the COVID-19 pandemic also prompted the Sanitary Equipment Division to develop variable real glass protective partitions under the name "KermiPROTECT" or "Koralle SW100" and to launch them on the market to great acclaim. In addition to use in offices or public authorities, for example, these can also be used in retail stores or restaurants and are distinguished from conventional Plexiglas variants by their high stability and permanent resistance to cleaning agents.

In the reporting year, Kermi Duschdesign implemented a new configurator for its domestic markets (DACH), which allows users to put together their own shower stall. In just a few steps, users can find their optimal shower enclosure by individually selecting the installation situation, door functionality, series, and design. After the final configuration, a data sheet with all important information can be sent to the customer. In addition, an order tracking system went live at both Bekon-Koralle and Kermi Duschdesign as a result of successful project work in the reporting year. Baduscho established a news flash in order to reach customers even faster with information and news.

To support the installation of shower stalls and provide information, the division is increasingly making installation films and product videos available on YouTube. In addition, the Kermi homepage was completely revised and refreshed at the end of 2020 in order to meet customer requirements even better.

The information centre at the Plattling (D) site was significantly modernised in the reporting year and features an inviting customer reception in a pleasant atmosphere. The new world of experience houses over 60 exhibits for viewing. Over 850 square metres, Kermi has laid the foundation for further successful events with comprehensive equipment, state-of-the-art technology, and new training rooms. As part of a recently completed sanitary hall, the "DuschCenter", a showroom for showers, was also equipped for conducting target group-specific customer training.

At the Dagmersellen (CH) site, Koralle created modern working environments and sufficient space with the construction of the "Shower Centre". The opening took place in September 2020. The spacious and customer-friendly showroom and the associated training rooms are an important part of the premises. The associated inauguration of the competence centre for architects, wholesalers, installers, and end customers was another milestone in the successful development of Bekon-Koralle. By investing in state-of-the-art machinery, Bekon-Koralle also furthered the modernisation of its entire manufacturing facilities.

Personnel were added to the Baduscho field service in Austria. The organisation was revised and processes were optimised in order to be able to respond even faster and better to customer requirements. This especially concerns individual consulting and the further service offering.