ZURICH, (Reuters) – Geberit faces “significant problems on the raw materials market”, according to the Swiss building supply company. Higher costs have impacted the profit growth in the third quarter.

In the three-months to September, the sales of the manufacturer of bathroom ceramics and piping rose 7.6% to 854.8 millions Swiss Francs ($935.5 Million).

Geberit stated that operating profit was only 1.5% higher at 230.7 million Francs due to an increase in raw material costs of 15.6%.

Another construction company has warned of higher raw materials costs impacting their profit, even though it sees a revival in building activity since the last year pandemic.

Geberit projects that raw material prices will increase by about 3% over the previous quarter. The company also anticipates that increases in the price of energy will have a negative impact.

Company results have been viewed as a proxy of wider construction industries. The company uses metals like zinc, ceramics, and plastics in their products. They are used in refurbishment and new-build projects.

($1 = 0.9137 Swiss francs)