RECORD RESULTS FOR PROFIT AND CASH FLOW –
- Sales of
CHF 7,877.5 million (-2.9% in CHF, +3.4% in local currencies) - EBITDA increased to
CHF 1,497.6 million (+7.9%) - Operating profit (EBIT) increased to
CHF 1,130.5 million (+7.1%) - EBIT margin increased to 14.4% (previous year: 13.0%)
- Net profit up to
CHF 825.1 million (+8.8%) - Operating free cash flow increased to
CHF 1,259.4 million (+22.7%) - Reduction of CO2 emissions by 25.9% to 20 kg per ton sold (previous year: 27 kg per ton sold)
- 6 factories opened or extended, 1 company acquired and one expanded partnership
- Proposal for dividend increase of 8.7% to
CHF 2.50 (previous year:CHF 2.30 ) - From
May 1, 2021 :Thomas Hasler to succeed CEOPaul Schuler - Outlook for 2021 fiscal year
- Sales increase in local currencies of 6%–8%
- Over-proportional increase in EBIT, EBIT margin to reach 15% for the first time
- Confirmation of 2023 strategic targets for sustainable, profitable growth
The 2020 fiscal year was overshadowed by the COVID-19 pandemic, which had a number of severe effects for the construction and automotive sectors. Despite this difficult environment, Sika nonetheless achieved record results. Sales increased by 3.4% in local currencies. Due to negative currency effects, this equates to a slight decline in sales in Swiss francs of -2.9% compared to the prior year. Operating profit (EBIT) grew by an over-proportional 7.1% to
CORONAVIRUS PANDEMIC AND MEASURES TAKEN IN RESPONSE
In the majority of the 100 countries in which Sika is present, lengthy lockdowns have partially restricted construction activity. Furthermore, many customers in the automotive industry had to close their factories for a number of weeks. Thanks to its strong market position and swift, targeted implementation of measures, Sika was able to record very robust results despite this challenging environment.
The focus of the measures initiated was threefold. Employees, customers, and suppliers needed to be protected, operating activity was continued at a high level, and the Group’s strong customer focus was retained or even strengthened. Sika therefore enforced social distancing rules all around the world at a very early stage, introduced mask-wearing and protective clothing in production processes, and complied with rigorous travel restrictions. The emphasis was on working from home wherever possible, and meetings were held virtually. Sika's close contact with its customers even increased during the crisis. For example, more than 150,000 webinars were hosted in order to train customers worldwide.
SIKA – ENABLER OF SUSTAINABLE CONSTRUCTION AND ENVIRONMENTALLY-FRIENDLY MOBILITY
In addition to the pandemic, climate change poses significant long-term challenges to society. As part of its growth strategy, Sika has committed to reducing CO2 emissions by 12% until 2023, with the ultimate goal of being climate-neutral by 2050 at the latest. The interim target is to halve greenhouse gas emissions per ton of product sold by 2030 compared to the levels recorded in 2019. This is being achieved by increasing the energy efficiency of the production process, and obtaining an increasing proportion of the energy it requires from renewable resources (Scope 1+2). Already in the past fiscal year, Sika clearly exceeded its prescribed target of a three percent reduction in CO2 annually, reducing emissions by no less than 26%. Sika now releases 20 kg of CO2 per ton sold (previous year: 27 kg).
However, in its clear commitment to sustainability, Sika is looking not only to reduce its own CO2 emissions, but also to help customers reduce their CO2 footprint massively with innovative solutions and products. With its various technologies, Sika is in many ways an “enabler” with the expertise to achieve the goal of climate neutrality in the construction and automotive industries. Sika's admixtures facilitate low-emission and resource-saving construction, its facade systems allow for energy-efficient buildings, and Sika adhesives contributes to climate-friendly vehicles.
MARKET SHARE GAINS IN ALL REGIONS
In an environment characterized by widespread temporary lockdowns, Sika managed to grow more strongly than the market in all regions. Furthermore, the distribution business posted considerable gains in all regions.
The EMEA region (
The
Growth in the
Global Business recorded a sales decline of 11.4% in 2020 (previous year: 3.0%). In the same period, the automotive sector reported a global decline in output of 17%. Despite the pandemic-related decline in sales figures during the crisis year of 2020, Sika is convinced that the megatrends shaping modern automotive construction – which include e-mobility, further new drive concepts, and the trend toward lightweight construction – will help the Group to capture additional market share.
RECORD FIGURES FOR PROFIT AND CASH FLOW
The Group was able to post new records for both profit and cash flow in the fiscal year 2020. This proves that Sika can rapidly adapt to changing market conditions and work cost-efficiently even in a difficult year. The material margin recorded a year-on-year increase from 53.6% to 54.8%. Sika increased EBIT by 7.1% to
HIGHER DIVIDEND TO BE PROPOSED
Given the increase in net profit, the Board of Directors will be proposing an 8.7% increase in the gross dividend to
SIKA ENSURES CONTINUITY
On
CONTINUATION OF SUCCESSFUL GROWTH STRATEGY AND OUTLOOK
Despite the coronavirus crisis and its repercussions for operating results, Sika is confirming its 2023 strategic targets. The company remains aligned for long-term success and profitable growth. 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. From 2021, the company is aiming to increase its EBIT margin to 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.
For the 2021 fiscal year, Sika is expecting an increase in sales in local currencies of 6%–8%, along with an over-proportional rise in EBIT. The EBIT margin should for the first time reach 15%.
in CHF mn | as % of net sales | 2019 | as % of net sales | 2020 | Δ in % |
Net sales | 8,109.2 | 7,877.5 | –2.9 | ||
Gross result | 53.6 | 4,344.0 | 54.8 | 4,314.8 | –0.7 |
Operating profit before depreciation (EBITDA) | 17.1 | 1,387.6 | 19.0 | 1,497.6 | +7.9 |
Operating profit (EBIT) | 13.0 | 1,055.1 | 14.4 | 1,130.5 | +7.1 |
Net profit | 9.4 | 758.5 | 10.5 | 825.1 | +8.8 |
Net profit per share (EPS) in CHF | 5.30 | 5.82 | +9.8 | ||
Operating free cash flow | 12.7 | 1,026.1 | 16.0 | 1,259.4 | +22.7 |
Balance sheet total | 9,959.7 | 9,794.0 | –1.7 | ||
Shareholders' equity | 3,161.2 | 3,288.0 | |||
Equity ratio in % | 31.7 | 33.6 | |||
Net working capital | 18.1 | 1,471.2 | 16.9 | 1,329.5 | |
ROCE in % | 19.2 | 16.6 | |||
Number of employees | 25,141 | 24,848 | –1.2 |
The Annual Report and the media conference/analyst presentation on the 2020 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
Net sales first quarter 2021 | |
53rd Annual General Meeting | |
Half-Year Report 2021 | |
Results first nine months 2021 | |
Net sales 2021 | |
Media conference/analyst presentation on 2021 full-year results |
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
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