Sika has registered a strong start to 2018, with the first quarter financial result of year showing double-digit sales growth and a new sales record of CHF 1,554.0 million. This equates to an increase of 11.0% in local currencies as against 10.7% the previous year. A positive currency effect (0.9%) led to robust sales growth in Swiss francs of 11.9%. Sika’s growth was also positively impacted by the consolidation of the seven companies acquired last year (acquisition effect: 6.3%).

According to Paul Schuler, CEO of Sika, “The good development of business in the first quarter indicates that we will be able to grow strongly once again in 2018, and to further implement our strategic targets for 2020. We are looking to increase sales by more than 10% for the year as a whole, and thereby break through the CHF 7 billion sales mark for the first time.”

The company has reported growth from all regions. In the EMEA region (Europe, Middle East, Africa) its sales increased by 10.2% (previous year: 12.4%). The newly formed Americas region generated growth of 12.2% (previous year: 14.0%), of which 5.5% was achieved through acquisitions. Growth in the Asia/Pacific region amounted to 3.9% (previous year: 7.1%). The highest growth rates were recorded by India, Australia and New Zealand. The new Global Business segment recorded a growth rate of 20.9% (previous year: 3.3%).

The strong start to the year supports the target for the 2018 financial year – namely an increase in sales of more than 10% to reach CHF 7 billion for the first time. However, according to the company, the volatile and rising raw material prices continue to pose a challenge. For the year as a whole, Sika foresees, EBIT and net profit to rise once again at a disproportionately high rate. The growth strategy will be continued in 2018 with the opening of eight new factories and the founding of more national subsidiaries. In addition, Sika will seek to fully exploit the business potential offered by acquisitions through enhanced distribution channels, expanded product portfolios and improved prospects for market access.