Sika reports growth in sales despite Covid-19
Company's sales rose significantly to a record CHF 9.24 billion, corresponding to growth of 17.1% in local currencies
Sika AG performed well in a challenging environment in 2021, once again demonstrating the strengths of its business model. Despite the persistent COVID-19 pandemic and bottlenecks in the procurement of raw materials, sales rose significantly to a record CHF 9.24 billion, corresponding to growth of 17.1% in local currencies. The currency effect came to 0.2%. The acquisition effect was 2.0%, and organic growth amounted to 15.1%. Compared with the same period in 2019, the organic gain was 11.9%.
"2021 was expected to be a challenging year and it proved to be a very successful one for Sika. We are benefiting from a number of growth platforms and are in an ideal position to achieve long-term success. Thanks to our innovative technologies, we are the partner of choice for many customers in the construction and industrial sectors. We have solutions in place for all the development stages of construction markets, and government supported investment programs running into the billions will provide further impetus for our business. In addition, we are making targeted use of the megatrends that drive our key markets. There is huge demand for sustainable solutions. Our products and services enable our customers to reach their ambitious sustainability goals." said Thomas Hasler, Chief Executive Officer, Sika AG.
The company confirmed its 2023 strategic targets and the focus remains on 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. As of 2021, the company is aiming for a higher EBIT margin 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 the 2021 fiscal year, Sika is anticipating an over-proportional increase in EBIT and an EBIT margin of 15%.
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