Sika aims to grow by 6%–8% a year till 2023

The company remains aligned for long-term success and profitable growth.

The 2020 fiscal year was overshadowed by the COVID-19 pandemic, which had a number of severe effects for the construction and automotive sectors. Despite this difficult environment, Sika nonetheless achieved record results.

Sales increased by 3.4% in local currencies. Due to negative currency effects, this equates to a slight decline in sales in Swiss francs of -2.9% compared to the prior year. Operating profit (EBIT) grew by an over-proportional 7.1% to CHF 1,130.5 million – a new record result. In keeping with this development, new records were also set for net profit at CHF 825.1 million (+8.8% year-on-year) and operating free cash flow at CHF 1,259.4 million (+22.7% year-on-year).

"For our success in the challenging market environment of the last fiscal year, we must thank our employees in particular. Their strong customer focus and impressive dedication coupled with our successful business model made a significant contribution to the Group’s resilience in the face of the COVID-19 pandemic. Particularly crisis-resistant in 2020 were the distribution business and our refurbishment business. In the future, the strong growth in demand for environmentally-friendly products will make a further contribution to our positive business development. Sika is the global leader in solutions for sustainable construction and sustainable mobility. Already today, a large part of our sales is generated by technologies that provide sustainability benefits for customers, the environment, and society," Paul Schuler, Chief Executive Officer, said.

Despite the coronavirus crisis and its repercussions for operating results, Sika is confirming its 2023 strategic targets. The company remains 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 an increase in sales in local currencies of 6%–8%, along with an over-proportional rise in EBIT. The EBIT margin should for the first time reach 15%.