Despite the persistently strong impact of the coronavirus pandemic and the associated bottlenecks in the procurement of raw materials, Sika recently reported that it has been able to continue on its consistent growth trajectory, closing the first nine months of 2021 with record results. Sales rose sharply to a record figure of almost CHF 6.9 billion (approximately $7.5 billion), corresponding to growth of 18.1% in local currencies.

The currency effect was 0.1%. The acquisition effect after nine months was 1.3%, resulting in an organic growth in the reporting period of 16.8%.
 
The EMEA region (Europe, Middle East, Africa) reported a sales increase in local currencies of 17.6% for the first nine months. As in the previous year, growth in the distribution and renovation business outstripped growth in the other business segments. Almost all countries in the region achieved double-digit growth rates. Eastern Europe, including Russia, Romania, Serbia, and the Czech Republic benefited from a surge in growth, as well as the UK and countries in Africa. In general, purchases of Sika product solutions via e-commerce platforms saw an above-average increase.
 
The Americas region recorded growth in local currencies of 19.3%. Despite a challenging supply chain situation, the region returned to clear double-digit growth. Mexico, Colombia, Brazil, Peru, and Chile performed very strongly, while business in the U.S. gained momentum. Growth drivers were large-scale maintenance and new-build projects in the area of distribution and data centers. In the Americas region, the strategic focus of business activities on big cities and urban centers paid off, as did the concentration on major infrastructure projects and successful cross-selling.
 
Sales in local currencies in the Asia-Pacific region increased by 20.7%. China, in particular, enjoyed a strong continuous momentum, with double-digit organic growth rates due to a large number of infrastructure projects and strong sales in the distribution business. India continues its strong performance, while Southeast Asian countries (particularly Vietnam, Malaysia, and Thailand) are suffering from renewed lockdowns. The trend in Japan remains challenging. Its closed borders policy is increasingly affecting the construction industry, and new projects are being postponed. 
 
In the Global Business segment, Sika achieved growth in local currencies of 9.9%. In the first nine months of the year, the automotive industry suffered from major bottlenecks in the electronic component supply chain. At the beginning of the year, car manufacturers were still expecting the volumes of new cars built to substantially recover compared to the previous year. However, these declined sharply in the third quarter due to the limited availability of semiconductor components.

Given these circumstances, the automotive industry is expecting zero growth by the end of the year. Sika anticipates sustained growth stimuli from the megatrends evident in modern automotive production: electromobility and lightweight construction. Notably, the transition from traditional drive systems to electromobility picked up momentum during the pandemic due to various support programs in a number of countries.

Sika also announced that it will reinforce its strategic pillars of Innovation, Sustainability, and Operational Efficiency by separating Innovation and Sustainability from Operational Efficiency, Quality and EHS. Combining Innovation and Sustainability will allow Sika to accelerate its “Enabler” concept while simultaneously driving operational efficiency across the organization.
 
As a result, effective November 1, Patricia Heidtman succeeds Frank Hoefflin as a member of group management in the newly created position of chief innovation and sustainability officer. Heidtman joined Sika as a chemist in 1998. In 2000, she moved to the U.S., where she held various R&D positions in automotive and ultimately assumed the role of vice president R&D and head of innovation management. In 2019, she returned to Switzerland to take on the position of core technology head for thermoplastic systems. She graduated from ETH Zurich with a degree in chemistry.
 
Hoefflin will assume the newly created position of head Operations, Quality and EHS. In his new role, he will continue to report directly to the CEO but will step down from group management. 
 
Additional details are available at www.sika.com.