Ad Hoc Announcement Pursuant to Article 53 of the SIX Exchange Regulation Listing Rules
RECORD RESULTS IN FIRST HALF OF 2021 – STRONG GROWTH IN SALES AND EBIT
- Sales increase of 23.5% in local currencies
- First-half sales at
CHF 4,448.7 million (+23.1% in CHF) - Operating profit (EBIT) at
CHF 685.9 million (+67.2%) - Record EBIT margin at 15.4%
- Operating free cash flow increase at
CHF 318.4 million (+26.4%) - Acquisition of Kreps (
Russia ), DriTac (USA ), BRMassa (Brazil) , and Hamatite (Japan ) - Outlook for 2021 fiscal year
- Growth in local currencies of 13%–17% (previously: double-digit sales growth in local currencies)
- Over-proportional increase in EBIT, EBIT margin to reach 15% for the first time
- Confirmation of 2023 strategic targets for sustainable, profitable growth
Sika once again posted record results in the first half of 2021, despite the COVID-19 pandemic continuing to seriously impact business in all regions. The company generated strong growth rates and continued its growth trajectory, with a new sales record of
INCREASED RAW MATERIAL COSTS, HIGHER OPERATING LEVERAGE, ENHANCED EBIT MARGIN
The increase in the costs of raw materials fueled by supply bottlenecks resulted in a lower material margin of 53.3% (previous year: 54.6%). Thanks to higher volume and improved efficiencies of production processes, operating leverage increased. With a margin of 19.5% (previous year: 16.4%), operating profit before depreciation and amortization (EBITDA) markedly increased.
Operating profit (EBIT) amounted to
DOUBLE-DIGIT GROWTH IN ALL REGIONS
The COVID-19 pandemic is still very much present in all regions. In
In the first half of 2021, the EMEA region recorded a sales increase in local currencies of 24.1% (previous year: 3.2%). As in 2020, growth in the distribution and renovation business was stronger than in the other business segments. The private residential sector in particular turned in a highly dynamic performance. Nearly all countries in the region achieved double-digit growth rates. The countries of southern
The
Sales in local currencies in the
In the Global Business segment, Sika achieved growth in local currencies of 27.6% (previous year: -23.1%). In the first half of 2021, the automotive industry experienced major bottlenecks in the electronic parts supply chain, and it was only toward the mid-point of the period under review that production rates for new vehicles recorded an uptrend in all regions. In particular, the transition from traditional drive systems to electromobility has picked up momentum during the pandemic, underpinned by various local support programs. Growth of 10% is forecast for the automotive sector for full-year 2021. Sika anticipates long-term growth stimuli from the megatrends evident in modern automotive construction – electromobility and lightweight construction.
SUCCESSFUL GROWTH STRATEGY – INFORMATION ON ANNUAL TARGETS
Despite the COVID-19 pandemic and its repercussions for operating results, Sika is confirming its 2023 strategic targets. The company is still clearly 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 sales growth in local currencies of 13%–17% (previously: double-digit sales growth in local currencies) 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.
KEY FIGURES HALF-YEAR 2021
in CHF mn | Change in % | ||
Net sales | 3,614.6 | 4,448.7 | 23.1 |
Gross result | 1,973.2 | 2,372.8 | 20.3 |
Operating profit before depreciation (EBITDA) | 593.6 | 867.0 | 46.1 |
Operating profit (EBIT) | 410.2 | 685.9 | 67.2 |
Net profit after taxes | 275.6 | 494.7 | 79.5 |
Undiluted earnings per share (in CHF) | 1.94 | 3.49 | 79.9 |
Diluted earnings per share (in CHF)1 | 1.76 | 3.12 | 77.3 |
Operating free cash flow | 251.8 | 318.4 | 26.4 |
Balance sheet total2 | 9,794.0 | 10,364.2 | |
Shareholders' equity2 | 3,288.0 | 3,673.8 | |
Equity ratio in % 2,3 | 33.6 | 35.4 | |
Return on capital employed (ROCE) in % 4 | 13.5 | 19.8 | |
1 Dilutive effect due to convertible bonds issued. 2 As of | |||
3 Shareholders' equity divided by balance sheet total. | |||
4 Capital employed = current assets, PPE, intangible assets less cash and cash equivalents, current securities, current liabilities (excluding bank loans and bond). |
NET SALES BY REGION
in CHF mn | 1.1.2020- | 1.1.2021- | Change compared to prior year (+/- in %) | ||||
In CHF | In local currencies | Currency impact | Acquisition effect | ||||
By region | |||||||
EMEA | 1,626.6 | 2,036.4 | 25.2 | 24.1 | 1.1 | 2.2 | |
950.5 | 1,100.5 | 15.8 | 19.5 | -3.7 | 0.5 | ||
759.9 | 960.8 | 26.4 | 26.0 | 0.4 | 0.0 | ||
Global Business | 277.6 | 351.0 | 26.4 | 27.6 | -1.2 | 0.0 | |
Net sales | 3,614.6 | 4,448.7 | 23.1 | 23.5 | -0.4 | 1.1 | |
Products for construction industry | 2,956.6 | 3,624.3 | 22.6 | 23.1 | -0.5 | 1.4 | |
Products for industrial manufacturing | 658.0 | 824.4 | 25.3 | 25.9 | -0.6 | 0.0 |
Webcast today, |
In connection with the publication of the half-year results a webcast call will be held today. Please join 10 to 15 minutes before the start at: www.sika.com/hy-webcast By clicking this link, you will be able to participate in the webcast with A replay of the webcast will be available on the Sika website in the “Investors” section. |
FINANCIAL CALENDAR: | |
Results first nine months 2021 | |
Net sales 2021 | |
Media conference / analyst presentation on full-year results 2021 | |
Net sales first quarter 2022 | |
54th Annual General Meeting | |
Half-year report 2022 |
CONTACT
Corporate Communications &
Investor Relations
+41 58 436 68 21
slappnig.dominik@ch.sika.com
SIKA CORPORATE PROFILE
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 protection in the building sector and automotive 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
Sika_Half-Year Report_2021_EN
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