Sika recently announced that it performed well in a challenging environment in 2021. Despite the ongoing COVID-19 pandemic and bottlenecks in the procurement of raw materials, sales rose by 17.5% to a record CHF 9.3 billion (approximately $10.1 billion).
“Sika has generated lasting added value in a challenging year,” said Thomas Hasler, CEO. “Our achievements are only possible because of the countless initiatives worldwide and the great dedication of all our employees. We will continue to develop innovative solutions that support a sustainable future for the benefit of our customers, the environment, and society. We will pursue our strong growth in all regions and we will continue to deliver impressive performance in the future.“
Sika reports that, in general, the economy in 2021 recovered more quickly than expected from the impact of the pandemic. The fast-growing construction sector played a considerable part in this. Sika was able to grow in all regions in 2021.
The EMEA region (Europe, Middle East, Africa) reported a sales increase in local currencies of 16.1%. As in 2020, growth in the distribution and refurbishment businesses outstripped growth in the other business segments. Nearly all countries in the region achieved double-digit growth rates. The UK and the countries in Africa, the Middle East, and Eastern Europe benefited from an upsurge in growth. In general, sales of Sika product solutions via e-commerce platforms saw an above-average increase.
The Americas region recorded growth in local currencies of 21%. In the U.S., Sika reports that it gained substantial momentum. Growth was driven by large-scale refurbishment and new-build projects in the area of distribution and data centers. Strong growth rates were achieved in Mexico, Colombia, Brazil, Peru, and Chile. In the Americas region, the strategic focus of business activities on big cities and metropolitan areas again paid off, as did the concentration on major infrastructure projects and the targeted realization of cross-selling potential.
Sales in local currencies in the Asia-Pacific region increased by 19.4%. China in particular benefited from the ongoing strong growth momentum with double-digit organic growth rates and successfully expanded its infrastructure and distribution business. India continued to see a dynamic development, while the countries in Southeast Asia recovered from the severe lockdowns in the last quarter of the year. The trend in Japan remains challenging, as investment activity in the country’s construction market is still subdued.
In the Global Business segment, Sika posted growth in local currencies of 4.3%. The automotive industry experienced major bottlenecks in the electronic parts supply chain. Whereas forecasts at the beginning of the year predicted a strong recovery in the volume of new vehicles manufactured compared with the previous year, particularly in the second half there was a sharp decline owing to the lack of availability of semiconductors.
Nevertheless, Sika anticipates continued strong growth stimuli from the megatrends evident in modern automotive production: electromobility and lightweight construction. In particular, the transition from traditional drive systems to electromobility gained momentum during the pandemic and is benefiting from various government support programs in a number of countries.
With its focus on the six strategic pillars—market penetration, innovation, operational efficiency, acquisitions, strong corporate values, and sustainability—Sika is seeking to grow by 6-8% a year in local currencies up to 2023. For fiscal 2022, Sika expects sales to rise by well over 10% in local currencies to surpass CHF 10 billion (~ $11 billion) for the first time.
Additional details are available at www.sika.com.