Sika reports record sales, up 7%, in 2023
Sika posted record sales of CHF11,238.6m, up 7.1 per cent with an increase of 14.5 per cent in terms of local currencies in 2023.
Operating profit adjusted for one-time M&A effects increased to CHF1680.6m, up 12.7 per cent YoY, resulting in an EBIT margin of 15 per cent (2022:14.2 per cent).
Net profit declined 8.6 per cent YoY to CHF1062.6m in 2023, resulting in a net profit margin of 9.5 per cent, down from 11.1 per cent in 2022.
The company also closed the largest acquisition in its history. Its acquisition of the MBCC Group enables it to move itself to the next strategic growth level, according to the company. MBCC brings annual sales of CHF2.1bn and 6000 employees to Sika.
Thomas Hasler, Sika CEO, said: “We are proud to have coped well with the challenges of difficult macroeconomic and geopolitical parameters in the last fiscal year, in addition to closing the MBCC acquisition. We are currently expecting market conditions to remain challenging in 2024, while we see good momentum in major construction and infrastructure projects that are either at the planning stage or about to be implemented in all regions. Sika is ideally positioned to benefit from the commercial potential of this international project pipeline. Our ambitions for the coming years build on our strengths, which are well anchored in our Growth Strategy 2028.“
Growth in all regions
The Europe, Middle East, Africa region reported a sales increase in local currencies of 14.8 per cent (previous year: 8.3 per cent). The countries of the Middle East and Africa recorded strong growth rates, while France, Spain, and Portugal likewise developed positively. Among other things, Sika benefited from economic subsidy programs and from investments aimed at saving energy in buildings as well as the booming area of e-mobility. Once again, business activity was subdued in Germany, Austria and northern Europe. The positive trend toward more infrastructure and commercial construction projects in the EMEA region continued in the fourth quarter. Distribution business was likewise up slightly on 2022.
In local currency terms, the Americas region achieved a 14.9 per cent increase in sales (previous year: 27.5 per cent). Rising rates of inflation, high interest rates,and an increasing shortage of specialised labour weighed on construction activity in many markets, with the corresponding negative impact on the wider construction economy. The growth in the region in 2023 is attributable to the MBCC acquisition. The US construction economy benefited generally from infrastructure projects, supported by state subsidy programmes and projects in the context of reshoring production facilities to the USA. Latin America also contributed to the rise in sales with solid growth.
Sales in the Asia/Pacific region advanced by 15.1 per cent in local currencies (previous year: 14.8 per cent). In China, Sika recorded double-digit growth in distribution business, while project business declined slightly. Sales in Japan increased, and double-digit growth rates were achieved in the growth market of India. Business in Indonesia, Thailand, and the Philippines was characterised by increasing positive momentum.
