Sika Achieves Record Sales Growth Amid Challenging Markets

Impressive Sales Growth Achieved by Sika in 2024

Sika has announced remarkable sales figures of CHF 11.76 billion for the fiscal year 2024. This reflects not only a solid revenue boost but also a significant growth rate of 7.4% when evaluated in local currencies. Despite facing challenging market conditions, the company's performance proves its resilience and strategic acumen.

Breakdown of Sales Performance

The increase in sales, when converted to Swiss francs, marks a growth of 4.7%. It's essential to note that this figure accounts for a foreign currency impact, which was mildly adverse at -2.7%. Overall, the organic growth saw a modest rise of 1.1%, with a more promising increase of 1.7% noted in the latter half of the year. This trajectory positions Sika as a formidable contender in its sector.

CEO Thomas Hasler's Remarks

Thomas Hasler, the Chief Executive Officer, expressed pride in the company's achievements over the past year. He highlighted the successful integration of MBCC while emphasizing that 33,000 dedicated employees played a critical role in driving these results. The combination of consistent performance, innovative product offerings, and a focused marketing strategy has positioned Sika well to capture more market share.

Robust Growth Across All Regions

Sika's sales growth was not confined to just one area; it spanned multiple regions. Notably, the EMEA region (Europe, Middle East, and Africa) recorded a 7.3% increase in sales in local currencies, although it was a slight decline from the previous year's performance. Despite tough competition and a tough economic environment, including the German market's struggles, Sika managed to secure positive growth throughout this region.

Success in the Americas and Strategic Acquisitions

In the Americas, Sika achieved remarkable success with an increase of 11.2% in sales, driven largely by its operations in the USA. Various state-supported infrastructure projects and commercial construction initiatives have supported this upward trend. The company also made notable acquisitions, including Kwik Bond, which specializes in polymer systems for bridge rehabilitation. Furthermore, Sika has expanded its reach into the Dominican Republic and Peru with strategic acquisitions to bolster its product offerings in the construction sector.

Developments in Asia/Pacific

The Asia/Pacific region, however, saw a more tempered growth of 2.4% in local currencies. Challenges in the Chinese construction market affected Sika's project and distribution operations. Nevertheless, Southeast Asia made up for this dip with impressive organic growth throughout the fiscal year, demonstrating Sika’s adaptability and ongoing commitment to market penetration.

Investments in Future Growth

Sika is making significant investments to ensure continued growth for the coming years, including opening new plants in Peru, China, and Indonesia. Such efforts are strategic to meeting rising local demands while expanding production capabilities.

Positive Outlook for 2024 and Beyond

Looking ahead, Sika remains optimistic about its trajectory, anticipating a disproportionate increase in EBITDA for the 2024 fiscal year. The company aims to live up to its strategic targets set for 2028, focused on sustainable and profitable growth. Detailed financial results will be provided to stakeholders in early 2025, but preliminary indicators suggest a strong ongoing recovery in the market.

About Sika

Sika operates as a leading specialty chemicals firm, offering innovative solutions across bonding, sealing, damping, and reinforcing sectors within the building and construction industries. With a robust global presence in 103 countries and over 400 production facilities, Sika plays a critical role in enhancing environmental compatibility in construction and transportation. In 2024, Sika’s commitment to innovation and sustainability shone through, as its workforce of approximately 33,000 delivered record results.

Frequently Asked Questions

What are Sika's total sales for 2024?

Sika reported total sales of CHF 11.76 billion for the fiscal year 2024.

How much did Sika's sales grow in local currencies?

Sales growth in local currencies increased by 7.4% for Sika in 2024.

What acquisitions did Sika make recently?

Sika made significant acquisitions including Kwik Bond, Vinaldom in the Dominican Republic, and Chema in Peru.

What is Sika's outlook for fiscal 2024?

Sika anticipates an over-proportional increase in EBITDA for the 2024 fiscal year.

Where does Sika operate?

Sika operates in 103 countries and has a production presence in over 400 factories worldwide.

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