Sika's First-Half Net Profit Declined Amid Higher Sales

By Bingyan Wang

Specialty chemicals company Sika AG posted a 31% decline in its net profit for the first half of 2023, despite growth in sales, as expenses increased.

The Swiss company posted net profit of 411.9 million Swiss francs ($471.2 million), down 31% from CHF598.8 million a year earlier.

Net sales totaled CHF5.35 billion, compared with CHF5.25 billion, as almost all regions achieved growth in local currencies, despite challenging economic conditions, Sika said.

The company's recent acquisition of MBCC, also added to the top line. "Every region, except for Global Business, benefited from the acquisition," the company said.

Personnel expenses and operating expenses were higher in the first half of 2023, Sika said. This along with rising financial expenses due to higher interest rates, squeezed profits significantly in 1H.

"For the full 2023 fiscal year, Sika is expecting a sales increase in local currencies of above 15%, after factoring in the acquisition effect of the MBCC takeover, " Chief Executive Thomas Hasler said.

Write to Bingyan Wang at [e-mail]

(END) Dow Jones Newswires

08-04-23 0004ET