Despite a sharp rise in interest rates with the corresponding negative impact on the construction industry, Sika performed well in the first nine months of fiscal 2023 as sales grew to CHF 8,449.2 million (+5.6%).
A key growth driver was the newly acquired MBCC, which was consolidated at the start of May. The integration is proceeding successfully, and the expected annual sales have now been increased from CHF 160-180 million to CHF 180-200 million.
Thomas Hasler, CEO, Sika said, “Thanks to its leading technologies, Sika is capable of delivering strong results even in challenging economic times. We are growing at a double-digit rate and have further increased our profitability. Overall, we are closing in on the margin level that we recorded before the strong rise in raw material prices over the last two years. Our success is based on our highly motivated workforce as well as our innovative products and solutions. They not only support our customers in effectively completing their projects but also in achieving their climate targets. For the upcoming years, we have set ourselves even higher goals: Our recently announced Strategy 2028 – ‘Beyond the Expected’ – lays the basis for further profitable growth in a way that brings added value for all stakeholders.”
In the current fiscal year, Sika has significantly increased its material margin to 53.1% year-on-year. Adjusted EBIT increased to CHF 1,250 million, and the adjusted EBIT margin advanced from 13.8% to 14.8%. When including the one-time effects from divestments and acquisitions, the company recorded EBIT of CHF 1,144.8 million.
In the Global Business segment, Sika achieved growth in local currencies of 13.3% (previous year: 22.0%). Growth in the automotive business surpassed that of the overall market. This is due to demand for new vehicles, particularly electric vehicles, along with normalization of the supply chains. However, the strike in the automotive sector in the United States had a negative impact on growth.
For fiscal 2023, Sika expects sales in local currencies to rise by over 15%, including the MBCC acquisition effects. At the same time, Sika is confirming an expected over-proportional rise in EBIT, excluding the MBCC acquisition. Operating free cash flow should reach over 10% of net sales for the year.