DYNAMIC GROWTH – NEW SALES RECORD IN FIRST QUARTER – ANNUAL TARGET RAISED
- Sales increase of 12.6% in local currencies
- Q1 sales of
CHF 1,998.6 million (+10.2% in CHF) - Negative currency effect of –2.4%
- Acquisition of Kreps (
Russia ), DriTac (USA ), and BRMassa (Brazil) - Outlook for 2021 fiscal year
- Double-digit sales growth in local currencies (previously: local currency growth 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
Despite the ongoing COVID-19 pandemic, Sika has had a dynamic start to the 2021 fiscal year, continuing its growth trajectory in the first quarter with a new sales record of
GROWTH IN ALL REGIONS – DOUBLE-DIGIT GROWTH IN EMEA AND
The first quarter of the 2021 fiscal year remained affected by the COVID-19 pandemic, and by logistical challenges in particular. Thanks to its strong market position and the rapid, targeted implementation of growth initiatives, Sika was able to achieve record results in all regions.
In the first quarter of 2021, the EMEA region recorded a sales increase in local currency of 13.2% (previous year: 13.3%). Business developed well in
In the period under review, Sika acquired
The
In the first quarter of 2021, Sika acquired the flooring adhesives business segment of DriTac, a US-based company with a particularly strong market position in the area of adhesive bonding for flooring systems. Furthermore, BR Massa, a manufacturer of mortar products in
Sales in local currencies in the
In the Global Business segment, Sika achieved growth in local currencies of 2.7% (previous year: –7.1%). In the first quarter of the current financial year, the automotive industry experienced major bottlenecks in the electronic parts supply chain. Not until March were vehicle production rates once again rising significantly in all regions. For the year 2021, the automotive industry is expected to grow by 10%. Sika is expecting long-term growth stimuli from the megatrends evident in modern automotive construction, which will continue to be dominated by electromobility and lightweight construction.
CONTINUATION OF SUCCESSFUL GROWTH STRATEGY – ANNUAL TARGET RAISED
Despite the coronavirus crisis 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 double-digit sales growth in local currencies (previously: sales growth in local currencies of 6%–8%) and an over-proportional increase in EBIT. The EBIT margin should for the first time reach 15%.
LIVE INTERNET BROADCAST OF THE ANNUAL GENERAL MEETING
The Annual General Meeting of
In CHF mn | Year-on-year change (+/- in %) | ||||||
In CHF | In local currencies1 | Currency effect | Acquisition effect2 | Organic growth3 | |||
By region4 | |||||||
EMEA | 810.7 | 914.7 | 12.8 | 13.1 | -0.3 | 3.5 | 9.6 |
485.7 | 481.0 | -1.0 | 6.2 | -7.2 | 0.0 | 6.2 | |
338.2 | 422.8 | 25.0 | 25.8 | -0.8 | 0.0 | 25.8 | |
Global Business | 179.0 | 179.1 | 0.1 | 2.7 | -2.6 | 0.0 | 2.7 |
Net sales | 1,813.6 | 1,997.6 | 10.1 | 12.6 | -2.5 | 1.5 | 11.1 |
Products for the construction industry | 1,428.9 | 1,591.8 | 11.4 | 13.9 | -2.5 | 2.0 | 11.9 |
Products for industrial manufacturing | 384.7 | 405.8 | 5.5 | 7.8 | -2.3 | 0.0 | 7.8 |
|
FINANCIAL CALENDAR
Half-Year Report 2021 | |
Results first nine months 2021 | |
Net sales 2021 | |
Media conference/analyst presentation on 2021 full-year results | |
Net sales first quarter 2022 | |
54th Annual General Meeting |
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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