Sika sets new records for sales and profitability during the first nine months of the fiscal year. The company was also able to further accelerate organic growth, increasing the pace quarter-on-quarter this year. Sika gained additional market share once again in the third quarter and thus achieved a record CHF 8,914.9 million in sales during the first nine months (previous year: CHF 8,449.2 million), an increase of 9.1% in local currencies.
Sales growth in Swiss francs amounted to 5.5%, which includes a negative currency effect of -3.6%. In terms of profitability, Sika achieved a new EBITDA record of CHF 1,701.7 million (2023: CHF 1,502.7 million) corresponding to an increase of 13.2%. The EBITDA margin grew substantially to 19.1% (previous year: 17.8%).
Thomas Hasler, CEO: “Sika has been delivering solid results consistently for years and breaking record after record. We have once again achieved strong and highly profitable growth this year and gained additional market share, despite persistently challenging market conditions.
We are especially pleased that organic growth in the Americas region, where we have improved from quarter to quarter, is above four percent in the third quarter. This is mainly due to the large number of infrastructure projects, reshoring activities in the North American economy, and the strong demand for semiconductor plants and data centers. We are on track for a record year and in an excellent position to gain further market share and increase profitability in the future.”
MATERIAL MARGIN WITHIN 54-55% RANGE AND EBITDA UP OVER-PROPOTIONALLY
Sika managed to raise its material margin significantly to 54.7% (previous year: 53.1%), bringing it within the range of 54% to 55%. Efficiency gains and synergies from the MBCC acquisition have led to an EBITDA margin of 19.1% (previous year: 17.8%), despite inflationary cost pressure, equivalent to a 13.2% increase. Operating profit before depreciation, and amortization (EBITDA) in the first nine months were CHF 1,701.7 million, setting a new record.
With high operating free cash flow of CHF 849.5 million (previous year: CHF 896.5 million), Sika is well placed to further reduce the net debt incurred through the MBCC acquisition.
GROWTH IN ALL REGIONS
In the EMEA region (Europe, Middle East, and Africa), the positive trend towards more infrastructure and commercial construction projects continues. In the first nine months of 2024 the region recorded a sales growth of 9.0% in local currencies (previous year: 10.6%). Increased price stability, solid labor market figures, stabilizing purchasing power due to a recovery in real wages, and lower interest rates indicate that the economy in the region is picking up gradually.
At the local level, the countries in the Middle East, Africa, and Eastern Europe were able to generate further growth. Germany recorded initial positive growth development, but this has not yet lifted the country to a positive growth level. The automotive and industrial manufacturing sectors are facing declining volumes, due to the strong downturn in demand for new vehicles in Europe.
Sales in the Americas region increased by 12.2% (previous year: 14.5%) in local currencies during the reporting period. The USA, especially, had strong sustained growth over the year to date. The positive trend is being supported by government-funded infrastructure projects and the reshoring of production facilities. The business with roofing membranes and green roof systems has developed very well. Latin America also had solid growth that contributed to the positive trend in the region.
Sika successfully acquired Kwik Bond, a manufacturer of polymer systems for the refurbishment of concrete infrastructures in the USA. For over 30 years, Kwik Bond has specialized in the refurbishment of bridge decks. Furthermore, Sika acquired Vinaldom in the Dominican Republic, an established family-owned company with high-value product solutions for concrete construction. A state-of-the-art plant for producing macro-synthetic fibers for the reinforcement of concrete structures was commissioned in Lima, Peru. This innovative technology enables Sika to further expand its position as a leading supplier of the mining industry and strong partner for infrastructure projects.
The Asia/Pacific region increased its sales by 4.7% (previous year: 13.1%). In China, Sika managed to grow slightly in the distribution business despite sluggish markets, while the projects business declined. South-East Asia, on the other hand, gained growth momentum during the year, posting high single-digit growth figures. In the automotive sector, Sika further expanded its content per car with local and international automotive manufacturers in China and India.
In Liaoning, the largest province in Northeast China, Sika opened a highly efficient plant for producing mortars, tile adhesives and waterproofing solutions, enabling it to meet the growing demand in the distribution business. Furthermore, Sika has more than doubled the production capacity at the Bekasi plant, its biggest manufacturing facility in Indonesia.
OUTLOOK FOR 2024
Sika is confident that it can successfully maintain its sustainable and profitable growth strategy in 2024 as the economic environment slowly improves.
For 2024 Sika expects sales growth in local currencies of 6% to 9% and an over-proportional increase in EBITDA.
KEY FIGURES FOR FIRST NINE MONTHS OF 2024
| in CHF mn | 1/1/2023 – 9/30/2023 | 1/1/2024 – 9/30/2024 | Change in % |
| Net sales | 8,449.2 | 8,914.9 | 5.5% |
| Gross result | 4,487.9 | 4,876.9 | 8.7% |
| Operating profit before depreciation and amortization (EBITDA) | 1,502.7 | 1,701.7 | 13.2% |
| Operating profit (EBIT) | 1,144.8 | 1,294.7 | 13.1% |
| Profit after taxes | 736.5 | 922.6 | 25.3% |
NET SALES BY REGION
| in CHF mn | 1/1/2023 – 9/30/2023 | 1/1/2024 – 9/30/2024 | Year-on-year change (+/- in %) | |||||
| In CHF | In local currencies1 | Currency effect | Acquisition effect2 | Organicgrowth3 | ||||
| By region | ||||||||
| EMEA | 3,671.8 | 3,880.0 | 5.7% | 9.0% | -3.3% | 8.3% | 0.7% | |
| Americas | 2,857.7 | 3,125.3 | 9.4% | 12.2% | -2.8% | 9.9% | 2.3% | |
| Asia/Pacific | 1,919.7 | 1,909.6 | -0.5% | 4.7% | -5.2% | 5.2% | -0.5% | |
| Net sales | 8,449.2 | 8,914.9 | 5.5% | 9.1% | -3.6% | 8.1% | 1.0% | |
| Products for construction industry | 7,082.1 | 7,618.2 | 7.6% | 11.3% | -3.7% | 9.7% | 1.6% | |
| Products for industrial manufacturing | 1,367.1 | 1,296.7 | -5.1% | -2.1% | -3.0% | 0.0% | -2.1% | |
1 Growth in local currencies including acquisitions.
2 Sales contribution by acquired companies, without considering growth after business combination. Includes lost sales of discontinued operations. Sales growth of the acquired business since initial consolidation is included in organic growth.
3 Growth adjusted for acquisition, discontinued operations, and currency effect. Sales growth of the acquired business since initial consolidation is included in organic growth.
Webcast on October 25, 2024 at 3:00 p.m. (Central European Summer Time) |
A webcast will take place today focusing on the results for the first nine months of the year. Please log in five minutes prior to the start of the event.www.sika.com/9months-webcastThis link will allow you to participate in the webcast with Thomas Hasler (CEO), Adrian Widmer (CFO), Dominik Slappnig (Head of Corporate Communications & IR), and Christine Kukan (Head of Investor Relations).You will also be able to find a recording of the webcast in the “Investors” section of the Sika website. |
| FINANCIAL CALENDAR | |
| Net sales 2024 | Thursday, January 9, 2025 |
| Media conference / analyst presentation on full-year results 2024 | Friday, February 21, 2025 |
| 57th Annual General Meeting | Tuesday, March 25, 2025 |
| Net sales first quarter 2025 | Tuesday, April 15, 2025 |
| Half-year report 2025 | Tuesday, July 29, 2025 |
| Result first nine months 2025 | Friday, October 24, 2025 |
SIKA CORPORATE PROFILE
Sika is a specialty chemicals company with a globally leading position in the development and production of systems and products for bonding, sealing, damping, reinforcing, and protection in the building sector and the industry. Sika has subsidiaries in 103 countries around the world and, in over 400 factories, produces innovative technologies for customers worldwide. In doing so, it plays a crucial role in enabling the transformation of the construction and transportation industries toward greater environmental compatibility. With around 34,000 employees, the company generated sales of CHF 11.2 billion in 2023.
