In the first quarter of 2022, Sika once again performed strongly in a challenging market environment. Despite supply shortages in raw materials and a highly inflationary environment, Sika significantly increased sales, posting a new record figure of CHF 2,398.2 million. This equates to an increase of 21.9% in local currencies compared to the previous year (CHF 1,998.6 million). All regions were able to tap into the dynamic momentum of the construction economy and contribute to the strong sales growth. Sales growth in Swiss francs amounted to 20.0%, which includes a negative currency effect of –1.9%. The acquisition effect was 4.3%. Organic growth in the first quarter amounted to 17.6%.

 

"In the first quarter of the current fiscal year, we were confronted by ongoing strong raw material price increases. In addition to solid volume growth, we were able to implement consistent price adjustments. With our environmentally-friendly and innovative solutions we are positioning ourselves as a sustainability champion, and together with our customers, making a key contribution to climate neutrality in the construction and transportation industries. This first and foremost benefits the environment as well as current and future generations." says Thomas Hasler, Chief Executive Officer, Sika AG.

 

The construction sector is benefiting from significant global economic support programs and is being shaped by the megatrend of climate change, which is ushering in a paradigm shift for the construction industry. Solutions for reducing CO2 emissions and conserving resources are becoming increasingly sought after in the world of construction. With its technologies, Sika is ideally positioned to offer its customers solutions that allow them to reduce their CO2 footprint, while at the same time enhancing longevity and minimizing the use of resources in construction. Thanks to the considerable demand for future-oriented, environmentally-friendly products, Sika was able to grow significantly in all regions in the first quarter of 2022.

 

Thanks to its innovative technologies, Sika is the partner of choice for many customers in the construction and industrial sectors. Government-supported investment programs running into the billions will provide further impetus for its business in the coming years. In addition, Sika is making targeted use of the megatrends that drive its key markets. 

 

Based on these expectations, 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 onwards, the company is aiming to achieve an EBIT margin in the range of 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 fiscal 2022, Sika expects sales to rise by well over 10% in local currencies – surpassing CHF 10 billion for the first time – and is anticipating an over-proportional increase in EBIT.