Ad Hoc Announcement Pursuant to Article 53 of the SIX Exchange Regulation Listing Rules
SIKA ON TRACK TO SET RECORDS AFTER FIRST NINE MONTHS – STRONG GROWTH IN SALES AND EBIT
- Sales up by 18.1% in local currencies, sales of
CHF 6,862.7 million (+18.2% in CHF) - Operating profit (EBIT) at
CHF 1,054.0 million (+32.2%), EBIT margin at 15.4% - 7 acquisitions realized to date: Kreps (
Russia ), DriTac (USA ), BRMassa (Brazil) , Hamatite (Japan ),American Hydrotech (USA ), Bexel (Mexico ), and Landun (China ) - Change in Group Management with
Patricia Heidtman as new Chief Innovation and Sustainability Officer - Outlook for 2021 confirmed
- Expected growth in local currencies: 13–17%
- Over-proportional increase in EBIT, EBIT margin to reach 15% for the first time
- Confirmation of 2023 strategic targets for sustainable, profitable growth
Despite the persistently strong impact of the coronavirus pandemic and the associated bottlenecks in the procurement of raw materials, Sika was 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
RISE IN RAW MATERIAL COSTS, HIGH OPERATING LEVERAGE, INCREASED EBIT MARGIN
The sharp rise in raw material costs led to a lower gross margin of 52.6% in the first nine months (previous year: 54.6%). Economies of scale were realized thanks to higher volume, an increase in prices, and targeted efficiency gains in production workflows. The operating profit margin increased significantly to 15.4% (previous year: 13.7%) with operating profit (EBIT) rising to a new record of
DOUBLE-DIGIT GROWTH IN ALL REGIONS
The coronavirus pandemic continues to have a strong impact on business performance in all regions. Renewed lockdowns in parts of
The EMEA region (
The
Sales in local currencies in the
In the Global Business segment Sika achieved growth in local currencies of 9.9% (previous year:
-16.1%). In the first nine months of the year, the automotive industry suffered from major bottlenecks in the electronic-component supply chain. Whereas 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, 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, thanks to various support programs in a number of countries.
REINFORCEMENT OF STRATEGIC PILLARS INNOVATION, SUSTAINABILITY, AND OPERATIONAL EFFICIENCY
Sika will reinforce its strategic pillars 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. The following management changes are effective as of
SUCCESSFUL GROWTH STRATEGY – CONFIRMATION OF OUTLOOK 2021
Sika confirms its strategic targets 2023. The organization will continue to be aligned for sustainable, long-term success, and profitable growth. By targeting 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 until 2023. As of 2021, the company is aiming for a higher EBIT margin of 15%–18%. Projects in the areas of operations, logistics, procurement, and product formulation should result in an annual improvement in operating costs equivalent to 0.5% of sales. Sika's overriding sustainability goal is to reduce CO2 emissions per ton sold by 12% until 2023. In addition, the company aims to make all product innovations even more sustainable while at the same time increasing product performance.
For the 2021 fiscal year, Sika continues to expect sales growth in local currencies of 13%–17% as well as an over-proportional EBIT increase. The EBIT margin will reach 15% for the first time, despite a challenging raw material price development and supply chain restrictions.
KEY FIGURES FOR THE FIRST NINE MONTHS OF 2021
in CHF mn | 1. 1.2020 - | 1. 1.2021 - | Change in % |
Net sales | 5,805.5 | 6,862.7 | 18.2 |
Gross result | 3,169.7 | 3,608.8 | 13.9 |
Operating profit before depreciation (EBITDA) | 1,071.4 | 1,327.5 | 23.9 |
Operating profit (EBIT) | 797.1 | 1,054.0 | 32.2 |
Net profit | 561.5 | 765.1 | 36.3 |
NET SALES BY REGION
in CHF mn | Year-on-year change (+/- in %) | ||||||
in CHF | In local currencies1 | Currency effect | Acquisition effect2 | Organic growth3 | |||
By region | |||||||
EMEA | 2,613.7 | 3,097.8 | 18.5 | 17.6 | 0.9 | 1.6 | 16.0 |
1,513.4 | 1,773.8 | 17.2 | 19.3 | -2.1 | 2.3 | 17.0 | |
1,224.0 | 1,493.3 | 22.0 | 20.7 | 1.3 | 0.0 | 20.7 | |
Global Business | 454.4 | 497.8 | 9.6 | 9.9 | -0.3 | 0.0 | 9.9 |
Net sales | 5,805.5 | 6,862.7 | 18.2 | 18.1 | 0.1 | 1.3 | 16.8 |
Products for the construction industry | 4,769.4 | 5,653.5 | 18.5 | 18.4 | 0.1 | 1.6 | 16.8 |
Products for industrial manufacturing | 1,036.1 | 1,209.2 | 16.7 | 16.7 | 0.0 | 0.0 | 16.7 |
1 Growth in local currencies including acquisitions. 2 Share of sales of acquired companies not including post-combination growth. The sales growth of the acquired companies since initial consolidation is included in organic growth. 3 Growth adjusted for acquisition and currency effect. The sales growth of the acquired companies since initial consolidation is included in organic growth. |
Webcast on |
A webcast will take place today focusing on the results for the first nine months of the year. Please log in 5 minutes prior to the start of the event. |
www.sika.com/9months-webcast |
This link will allow you to participate in the webcast with |
A recording of the webcast will be made available in the Investors section of the Sika website. |
FINANCIAL CALENDAR | |
Net sales 2021 | |
Media conference/analyst presentation 2021 results | |
Net sales first quarter 2022 | |
54th Annual General Meeting | |
Half-Year Report 2022 | |
Results first nine months 2022 |
CONTACT
Corporate Communications &
Investor Relations
+41 58 436 68 21
slappnig.dominik@ch.sika.com
Sika is a specialty chemicals company with a leading position in the development and production of systems and products for bonding, sealing, damping, reinforcing, and protecting in the building sector and motor vehicle industry. Sika has subsidiaries in 100 countries around the world and manufactures in over 300 factories. Its 25,000 employees generated annual sales of
The media release can be downloaded from the following link:
Media Release
Shareholder Letter 9 months 2021_EN.pdf
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