Sika Achieves Record Sales in 2019
In a challenging market environment, Sika reports that its growth in all regions was stronger than the market in 2019.
Sika recently announced that it recorded double-digit growth and achieved a sales record of CHF 8.11 billion (approximately $8.3 billion) in the 2019 business year. This reportedly equates to an increase of 16.3% in local currencies, with the acquisition effect accounting for 13% and organic growth for 3.3%. Sales growth in CHF amounted to 14.4% (a negative 1.9% currency effect).
“With strong sales growth of 16.3% we exceeded our sales target for fiscal 2019 with a sales figure of CHF 8.11 billion,” said Paul Schuler, CEO. “We are also anticipating record figures for the operating result and profit. We will maintain our positive growth dynamic over the coming years. With our new Strategy 2023 we are moving the performance of our organization to the next level, and by consistently pursuing this strategic path we will be able to further exploit the business potential of our markets and generate sustainable, profitable growth. This latest record result was achieved thanks to the great dedication of our global workforce of more than 24,500 employees and their identification with Sika—I would like to thank them all.”
In a challenging market environment, Sika reports that its growth in all regions was stronger than the market. The EMEA region (Europe, Middle East, Africa) reported a sales increase in local currency of 11.5% in 2019 (previous year: 14.2%), with double-digit growth rates in Africa and high-single-digit growth in Eastern Europe. In Belarus, Sika acquired Belineco, a specialist manufacturer of polyurethane foam systems, while in Romania it has agreed to acquire Adeplast. Closing is expected in the first quarter of 2020. Production capacity was expanded in Egypt, Qatar, Serbia, Senegal, Cameroon, and Ethiopia, and new factories opened for concrete admixtures and mortars.
According to Sika, the Americas region has focused its business activities more strongly on the largest markets and urban centers, generating sales growth of 19.3% (previous year: 12.6%) in 2019. Growth momentum was particularly strong in North America. In Latin America, political tensions in countries such as Mexico, Chile, and Ecuador are also leaving their mark on local construction industries. Brazil, Colombia, and Peru are showing strong growth rates. In Canada, the acquisition of King Packaged Materials in the reporting period brought a concrete repair systems producer into the group.
Growth in the Asia-Pacific region amounted to 35.1% (previous year: 5.4%), a figure that includes a significant acquisition effect of 30.3%. The highest growth rates were recorded in the Philippines, India, and China. In China, Sika took over Crevo-Hengxin, a manufacturer of silicon-based sealants and adhesives. In addition, a new factory in the Bekasi district on the outskirts of Jakarta commenced operations in Indonesia in the reporting period. Sika now produces concrete admixtures and mortar products for the local construction market in three factories.
The Global Business segment recorded a growth rate of 3% (previous year: 29.2%). Sika generated further growth in the automotive area in 2019, despite the global stagnation in the automotive sector and the sharp decline in production figures. The megatrends in modern automotive construction, which are dominated by electro-mobility and lightweight construction, are opening up new avenues with long-term growth potential for Sika due to new lighter platforms with multi-material designs and new adhesive technologies, as well as heat management in modern battery technologies for electric vehicles. Sika recently received the Swiss Technology Award for a new adhesive technology used in the automotive and transport industry.
Additional details are available at www.sika.com.