Sika has released a financial report detailing its performance in a volatile economic environment. According to the report, Sika achieved another record result in the first nine months of fiscal year 2022. Sales increased to CHF 7,998.5 million (an increase of 16.6%), corresponding to growth of 18.5% in local currencies. The currency effect amounted to -1.9%. The acquisition effect was 3.4%, corresponding to organic growth of 15.1% in the reporting period.

Thomas Hasler, chief executive officer, said, “In the first nine months of the current fiscal year we achieved impressive results under continued demanding conditions. With our broad-based business model and global geographic presence, we have proven to be crisis-resistant and continued to grow strongly. It is our goal to reach sales of CHF 10 billion for the first time in 2022 and to increase our operating profit by an over-proportional amount.”

Raw Material Costs

Sharp rises in raw material costs led to a lower material margin of 49.3% in the first nine months (previous year: 52.6%). The operating profit margin was maintained at a high level, at 15.4% (previous year: 15.4%). Operating profit (EBIT) thus amounts to CHF 1,231.5 million (previous year: CHF 1,054.0 million), corresponding to a year-on-year increase of 16.8%. EBIT includes a profit of CHF 168 million resulting from the divestment of the European industrial coatings business. It also contains expenses of CHF 39 million incurred in connection with the planned acquisition of MBCC. Net profit increased to CHF 885.9 million (previous year: CHF 765.1 million).

Outlook For 2022

For fiscal year 2022, Sika expects sales in local currencies to increase by over 15%, with an over-proportional increase in EBIT. Sika confirms the strategic fit of the MBCC acquisition. Unconditional approval has been received from the authorities in most countries, among them Japan, China, Brazil, South Africa, Saudi Arabia, Turkey, and Thailand. The acquisition is significantly value enhancing, and Sika confirms annual synergies of CHF 160–180 million. A suitable buyer is being sought for part of the MBCC admixture business. The completion of this acquisition is targeted for the first half of 2023.

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