Ad Hoc Announcement Pursuant to Article 53 of the SIX Exchange Regulation Listing Rules
RECORD RESULTS FOR SALES, CASH FLOW, AND ADJUSTED EBIT
Results 2023
- Record sales of CHF 11,238.6 million (+7.1%), sales increase in local currencies of +14.5%
- Operating profit (EBIT) adjusted for one-time M&A effects increased to CHF 1,680.6 million (+12.7%), resulting in an EBIT margin of 15.0% (previous year: 14.2%)
- Operating profit (EBIT) reported at CHF 1,549.1 million (previous year:
CHF 1,579.7 million ) - Record operating free cash flow up to
CHF 1,372.7 million (+58.7%) - Proposal for dividend increase to CHF 3.30 per share (previous year: CHF 3.20)
- Successful MBCC integration with synergies in the first 8 months of
CHF 41 million - 108 new patents and 188 new inventions registered
- Reduction of CO2eq emissions per ton sold by -4.4% (scope 1 and 2)
Outlook for 2024 fiscal year
- For the 2024 fiscal year, Sika is expecting sales growth in local currencies of 6–9%
- Over-proportional increase in EBITDA expected
Sika can look back on a historic year. In 2023, not only did the company set a course for a successful future with its new strategy “Beyond the Expected”, it also closed the largest acquisition in the company’s history. Thanks to the acquisition of
Overall, Sika maintained its profitable growth trajectory in 2023 even in a challenging economic environment, generating record sales despite high rates of inflation, rising interest rates, and strong currency depreciation. The total sales figure amounted to
STRONG IMPROVEMENT IN MATERIAL MARGIN AND ADJUSTED EBIT MARGIN – RECORD CASH GENERATION
Sika managed to expand its material margin significantly to 53.6% in 2023 (2022: 49.4%), taking a decisive step on the road to margin recovery. Profit at EBIT level was influenced by various one-time effects. In the prior-year period, Sika recorded an extraordinary book profit of
A significant increase was recorded in operating free cash flow, setting a new record of
DOUBLE-DIGIT GROWTH AND MARKET SHARE GAINS IN ALL REGIONS
All regions performed well and contributed to Sika’s further growth and the systematic expansion of market share. This enabled Sika to deliver organic growth in 2023, in contrast to a negatively developing market.
The EMEA region (
In local currency terms, the
Sales in the
In the Global Business segment, Sika achieved growth in local currencies of 10.0% (previous year: 22.2%). This increase is primarily due to robust demand for new vehicles, particularly electric vehicles, along with the normalization of supply chains. The US strike in the auto industry had a negative effect in the final quarter of last year, as did the decline in business not related to the automotive industry in this segment. Sika received a record number of new orders in the automotive business in 2023. The acquired supply orders will generate further sales growth in the medium term and ensure that the automotive business continues to generate a strong performance.
LAUNCH OF NEW GROWTH STRATEGY 2028 WITH AMBITIOUS TARGETS
In the fall Sika unveiled the new Strategy 2028 “Beyond the Expected”, which builds on the success of the previous growth model. The roadmap envisages leveraging Sika’s leading market position and innovative strength, setting the course towards even stronger company performance over the coming years. The annual growth target in local currencies has been lifted to 6–9%, with the profitability target increased to an EBITDA margin of 20–23%. The new growth strategy is based on the four pillars of Market Penetration, Innovation & Sustainability, Acquisitions, and People & Culture, and represents a balanced combination of financial and non-financial objectives.
DIVIDEND INCREASE AND NEW ELECTION TO THE BOARD OF DIRECTORS
In view of the good results, at the Annual General Meeting to be held on
OUTLOOK FOR 2024
For the current fiscal year, Sika is convinced that it will be able to successfully continue its strategy built on sustainable and earnings-oriented growth even in a challenging economic environment. With its innovative technologies, Sika is the partner of choice for many customers in the construction and industrial sectors. These sectors are being heavily shaped by the megatrend of sustainability, as well as by increasing automation, digitalization, and the rising demand for easy-to-apply products.
For the 2024 fiscal year, Sika is expecting sales growth in local currencies of 6–9% and again an over-proportional increase in EBITDA.
EBIT ADJUSTED FOR ONE-TIME M&A EFFECTS
in CHF mn | Change | ||
Reported operating profit (EBIT) | 1,579.7 | 1,549.1 | |
Divestment gain1 | -166.5 | 0.0 | |
M&A and integration cost2 | 78.3 | 131.5 | |
EBIT adjusted for one-time M&A effects | 1,491.5 | 1,680.6 | +12.7% |
EBIT margin adjusted for one-time M&A effects | 14.2% | 15.0% | +80 bps |
1 Divestment of European industrial coatings business. 2 Cost related to the acquisition of MBCC. |
KEY FIGURES 2023
in CHF mn | as % of net sales | 2022 | as % of net sales | 2023 | Δ in % |
Net sales | 10,491.8 | 11,238.6 | +7.1 | ||
Gross result | 49.4 | 5,179.8 | 53.6 | 6,024.8 | +16.3 |
Operating profit before depreciation (EBITDA) | 18.7 | 1,964.2 | 18.2 | 2,044.7 | +4.1 |
Operating profit (EBIT) | 15.1 | 1,579.7 | 13.8 | 1,549.1 | -1.9 |
Net profit | 11.1 | 1,162.5 | 9.5 | 1,062.6 | -8.6 |
Net profit per share (EPS) in CHF1 | 7.57 | 6.82 | -9.9 | ||
Operating free cash flow | 8.2 | 865.2 | 12.2 | 1,372.7 | +58.7 |
Balance sheet total | 11,319.2 | 15,050.7 | +33.0 | ||
Shareholders' equity | 4,967.1 | 5,933.2 | |||
Equity ratio in % | 43.9 | 39.4 | |||
Net working capital | 18.3 | 1,915.8 | 19.1 | 2,141.6 | |
ROCE in % | 21.6 | 16.3 | |||
Number of employees | 27,708 | 33,547 | +21.1 |
1 undiluted
The Annual Report and the media conference/analyst presentation on the 2023 financial year can be downloaded at www.sika.com.
Link to Annual Report: www.sika.com/annualreport
Link to live transmission of the media, investor, and analyst presentation of
FINANCIAL CALENDAR | |
56th Annual General Meeting Net sales first quarter 2024 Half-Year Report 2024 Capital Markets Day Results first nine months 2024 Net sales 2024 Media conference/analyst presentation on 2024 full-year results |
Sika is a specialty chemicals company with a globally leading position in the development and production of systems and products for bonding, sealing, damping, reinforcing, and protection in the building sector and automotive industry. Sika has subsidiaries in 103 countries around the world and, in over 400 factories, produces innovative technologies for customers worldwide. In doing so, it plays a crucial role in enabling the transformation of the construction and vehicle industries toward greater environmental compatibility. With more than 33,000 employees, the company generated sales of
CONTACT
Corporate Communications &
Investor Relations
+41 58 436 68 21
slappnig.dominik@ch.sika.com
The media release can be downloaded from the following link:
Media Release
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