Sika AG
Special announcement pursuant to Article 53 of the SIX Exchange Regulation Listing Rules
Further market share expansion – SIKA achieves record results in the first half of the year
First-half sales reached CHF 5,834.8 million (+9.2% in CHF)
Sales increased 12.8% in local currencies, while the impact of foreign exchange was negative 3.6%
Material margins to expand to 55.1% (H1 2023: 52.7%)
EBITDA margin increases to 18.7% (H1 2023: 16.5%)
Operating profit before depreciation and amortization (EBITDA) was CHF 1,092.9 million (previous year: CHF 881.1 million).
Successful integration with MBCC and increased full-year synergy guidance (CHF 100-120 million)
Acquisition of Kwik Bond in the US
New factories opened in Peru and China
Global employee survey confirms high engagement rate of 86%
Validating SBTi against Sika’s Net Zero Target
Outlook for 2024:
Local currency sales growth of 6-9%
Excessive EBITDA growth
Confirmation of 2028 strategic objectives for sustainable profitable growth
Sika successfully expanded its business activities in the first half of 2024 and achieved a record performance despite a challenging market environment. High growth rates and targeted market share expansion led to record sales of CHF 5,834.8 million (prior year: CHF 5,345.5 million). This corresponds to an increase of 12.8% in local currencies. Sales growth in Swiss francs reached 9.2%, including a negative currency effect of -3.6%, which was contained in the second quarter. At the profitability level, Sika significantly expanded its EBITDA margin to 18.7% (prior year: 16.5%). The integration of the MBCC acquisition is progressing well and made a significant contribution to the strong half-year performance.
CEO Thomas Hassler: “Our strong performance in the first half of 2024 shows that we are well positioned to gain market share, even in a challenging market. Furthermore, our short- and long-term emission reduction targets, aiming at net-zero emissions by 2050, have been validated by the Science Based Targets initiative (SBTi). This important achievement underlines Sika’s commitment to sustainability and its active role in the decarbonization of the construction and automotive industries. We also reached an important milestone in our Strategy 2028: our global employee survey carried out in the first half of the year showed an engagement rate of 86%, significantly exceeding the target of 80%. Sika has a strong company culture and there is no doubt that our employees have a deep sense of belonging to the company. Thanks to all our employees, we have once again achieved strong performance in the first half of 2024.”
The story continues
Significant increase in EBITDA
Sika achieved a strong margin of 55.1% in the first half of the year (previous year: 52.7%). This improvement, combined with efficiency gains and synergies from the MBCC acquisition, led to a significant increase in the EBITDA margin to 18.7% (previous year: 16.5%), despite rising costs in some areas. Operating profit before depreciation and amortization (EBITDA) reached a record high of CHF 1,092.9 million in the first half of the year.
A clear focus on cash generation enabled Sika to achieve a record operating free cash flow of CHF 401.3 million (previous year: CHF 322.5 million).
Growth and market share gains in all regions
All regions were successful and contributed to Sika’s growth and expansion of business activity. The company continued its organic growth in the first half of the year, further increasing its market share.
In the first half of 2024, sales in local currency in the EMEA region (Europe, Middle East and Africa) grew by 13.5% (previous year: 4.1%). Increasing price stability, solid employment statistics, a stabilization of purchasing power due to a recovery in real wages and a downward trend in interest rates point to an economic recovery in the region.
The positive trend towards an increase in infrastructure and commercial construction projects continued in the first half of the year. Sika also achieved growth in its distribution business. At regional level, countries in the Middle East, Africa and Eastern Europe achieved further growth. In the EMEA region, Germany, one of the most important markets for the construction industry, showed initial growth momentum. In contrast, the Automotive & Industrial business recorded a weaker performance in the first half of the year due to the decline in new vehicle production.
The Americas region achieved a sales increase of 15.1% in local currency in the reporting period (previous year: 12.0%). The United States in particular has recorded continued economic growth this year. Factors supporting this positive trend were state-financed infrastructure projects and those realized in the context of the return of production facilities to the United States. Latin America also contributed to the positive trend in the region with moderate growth. In the automotive business, Sika achieved a slight increase in sales. Compared to the reference period of the previous year, the company further increased its content per vehicle.
Sika has acquired Kwik Bond, a US manufacturer of polymer systems for the rehabilitation of concrete infrastructure. Kwik Bond has specialized in the rehabilitation of bridge decks for over 30 years. With this acquisition, Sika expands its portfolio of high-value systems for the rehabilitation of concrete structures.
In Lima, Peru, Sika has commissioned a state-of-the-art factory producing synthetic macro fibers for concrete components. This innovative technology further strengthens the company’s position as a leading supplier to the mining industry and a strong partner for infrastructure projects.
In Asia Pacific, sales increased by 8.0% (previous year: 9.9%). In China, despite a shrinking market, Sika achieved moderate growth in its distribution business, while project business clearly declined. In contrast, Southeast Asia gained growth momentum throughout the year, with high single-digit growth. In the automotive sector, Sika expanded its content per vehicle with domestic and international car manufacturers in China and India.
The company opened a new factory in Liaoning, the largest province in northeast China, in the first half of this year. Producing mortar, tile adhesives and waterproofing solutions, the ultra-efficient factory will enable Sika to meet growing market demand in the coming years while shortening distances and optimizing logistics operations.
Outlook for 2024
Sika is confident that it will be able to continue successfully implementing its strategy based on sustainable and profitable growth in a recovering economic environment in 2024. Around 34,000 dedicated employees around the world who strongly identify with the company’s goals make an important contribution. As an innovative leader in key markets, they play a key role in supporting Sika to drive the transformation of the construction and industry sector towards automation, digitalization and sustainability. Construction professionals, building owners, industrial companies and other stakeholders around the world trust in the premium quality, contribution to decarbonization and ease of use of Sika’s innovative solutions.
Sika forecasts revenue growth of 6-9% in local currencies in 2024 and a strong increase in EBITDA.
Key figures for the first half of 2024
CHF million
January 1, 2023 –
June 30, 2023
January 1, 2024 –
June 30, 2024
Rate of change(%)
Net Sales
5,345.5
5,834.8
+9.2
Overall Results
2,817.0
3,217.6
+14.2
Operating income before depreciation and amortization (EBITDA)
881.1
1,092.9
+24.0
Operating profit (EBIT)
660.4
822.2
+24.5
Profit after tax
411.9
577.1
+40.1
Basic earnings per share (CHF)
2.67
3.59
+34.5
Diluted earnings per share (CHF)
2.59
3.59
+38.6
Operating Free Cash Flow
322.5
401.3
+24.4
Balance Sheet Total1
15,049.2
16,134.4
Shareholders’ Equity1
5,933.2
6,425.2
Capital adequacy ratio (%1,2)
39.4
39.8
Return on invested capital (ROCE) (%3)
13.6
13.4
1 As of December 31, 2023/June 30, 2024
2 Shareholders’ equity divided by the balance sheet total.
3 Capital employed = current assets, property, plant and equipment, intangible assets less cash and cash equivalents, current securities, current liabilities (excluding bank borrowings and bonds).
Sales by region
CHF million
January 1, 2023 –
June 30, 2023
January 1, 2024 –
June 30, 2024
Year-over-year change
(+/- %)
Swiss
Fran
Locally
currency
currency
Impact
Acquisition
effect
By region
Europe, Middle East and Africa
2,322.2
2,565.3
10.5
13.5
-3.0
13.1
Americas
1,810.8
2,045.1
12.9
15.1
-2.2
13.9
Asia Pacific
1,212.5
1,224.4
1.0
8.0
-7.0
8.3
Net Sales
5,345.5
5,834.8
9.2
12.8
-3.6
12.3
Construction Industry Products
4,421.5
4,949.6
11.9
15.8
-3.9
14.9
Industrial Manufacturing Products
924.0
885.2
-4.2
-1.1
-3.1
0.0
Webcast on July 30, 2024 at 3pm CEST
A webcast will be held today in connection with the release of the half-year financial results.
www.sika.com/hy-webcast
Click on this link to join the webcast with Thomas Hasler (CEO), Adrian Widmer (CFO) and Dominik Slappnig (Head of Corporate Communications & Investor Relations).
A recording of the webcast will be made available on Sika’s website in the “Investors” area.
Financial Calendar
Results for the first nine months of 2024
Friday, October 25, 2024
Sales in 2024
Tuesday, January 14, 2025
Media conference/analyst presentation regarding full year 2024 results
Friday, February 21, 2025
The 57th Ordinary General Meeting of Shareholders
Tuesday, March 25, 2025
Sales in the first quarter of 2025
Tuesday, April 15, 2025
2025 Semi-Annual Report
Tuesday, July 29, 2025
SIKA Company Profile
Sika is a leading specialty chemicals company in the development and manufacture of systems and products for bonding, sealing, damping, strengthening and protecting in the building sector and industry. With subsidiaries in 103 countries and more than 400 plants, Sika produces innovative technologies for customers worldwide. This makes it a key enabler of the transformation towards a more environmentally friendly construction and transport industry. With around 34,000 employees, the company generated sales of CHF 11.2 billion in 2023.
contact
Dominic Slapnig
Corporate Communications &
Investor Relations
+41 58 436 68 21
slappnig.dominik@ch.sika.com
The media release can be downloaded from the following link:
Media Release
