Sika has released its 2022 financial report. According to the report, Sika performed well against an increasingly difficult economic backdrop with CHF 10.49 billion in sales. This corresponds to an increase of 15.8% in local currencies compared to the previous year. The currency effect came to -2.4%, with the softening U.S. dollar and the continued weak euro particularly impacting this development. The acquisition effect was 2.5%.
“In a market environment that proved extremely demanding, Sika achieved an impressive performance in fiscal 2022, posting sales in excess of CHF 10 billion for the first time in the company’s history,” said Thomas Hasler, chief executive officer. “This solid result was made possible thanks to our broad product portfolio, our ability to innovate with a focus on sustainable product technologies, and – in particular – our workforce around the globe, whose dedication and agility once again made outstanding achievements possible. On behalf of group management, I would like to thank our workforce of more than 27,500 people for the commitment they have shown over the past year and for their exceptional loyalty to our company.”
The EMEA region (Europe, Middle East, Africa) reported a sales increase in local currencies of 8.3% in 2022 (previous year: 16.1%). Sika’s distribution business, which includes product distribution via home improvement stores, builders’ merchants, and online platforms, saw a decline in volume.
The Americas region recorded growth in local currencies of 27.5% (previous year: 21.0%). Sika generated a large part of this growth from projects in the U.S. infrastructure segment, which saw significantly higher activity in 2022 compared to the previous year. Construction work focused on the modernization and expansion of subway lines, bridges, tunnels, and freeways. High demand also stemmed from investments in commercial construction projects, including stadiums and data centers. In addition, the United States is investing heavily in reshoring, which involves bringing industries back to the United States from Asia and constructing new manufacturing plants.
Sales in the Asia-Pacific region rose by 14.8% in local currencies (previous year: 19.4%). The distribution business in China benefited from a strong growth momentum, recording double-digit growth rates. However, the Chinese project business was heavily impacted by pandemic-related lockdowns in the first nine months of the year and again at the end of 2022 by a wave of COVID-19 across the country. Sika’s business activities in India continue to grow dynamically, and double-digit growth was achieved in challenging markets throughout Southeast Asia once the numerous lockdowns were lifted.
In global business, Sika achieved growth in local currencies of 22.3% (previous year: 4.3%), and thus grew much faster than the market. High demand for new vehicles and a normalization of supply chains have boosted business activity. For the automotive business, Sika is anticipating a recovery in the market over the medium term with continued growth stimuli from electromobility and alternative drive concepts in particular. For the 2022 fiscal year, Sika is anticipating record EBIT, and an EBIT margin of 15%.
For more information, visit: https://www.sika.com/.