Sika is confident that it can successfully maintain its sustainable and profitable growth strategy in 2024
Sika sets new records for sales and profitability during the first nine months of the fiscal year. The company was also able to further accelerate organic growth, increasing the pace quarter-on-quarter this year. Sika gained additional market share once again in the third quarter and thus achieved a record CHF 8,914.9 million in sales during the first nine months (previous year: CHF 8,449.2 million), an increase of 9.1% in local currencies.
Sales growth in Swiss francs amounted to 5.5%, which includes a negative currency effect of -3.6%. In terms of profitability, Sika achieved a new EBITDA record of CHF 1,701.7 million (2023: CHF 1,502.7 million) corresponding to an increase of 13.2%. The EBITDA margin grew substantially to 19.1% (previous year: 17.8%).
Thomas Hasler, CEO: “Sika has been delivering solid results consistently for years and breaking record after record. We have once again achieved strong and highly profitable growth this year and gained additional market share, despite persistently challenging market conditions. We are especially pleased that organic growth in the Americas region, where we have improved from quarter to quarter, is above four percent in the third quarter. This is mainly due to the large number of infrastructure projects, reshoring activities in the North American economy, and the strong demand for semiconductor plants and data centers. We are on track for a record year and in an excellent position to gain further market share and increase profitability in the future."
Sika managed to raise its material margin significantly to 54.7% (previous year: 53.1%), bringing it within the range of 54% to 55%. Efficiency gains and synergies from the MBCC acquisition have led to an EBITDA margin of 19.1% (previous year: 17.8%), despite inflationary cost pressure, equivalent to a 13.2% increase. Operating profit before depreciation, and amortization (EBITDA) in the first nine months were CHF 1,701.7 million, setting a new record.
With high operating free cash flow of CHF 849.5 million (previous year: CHF 896.5 million), Sika is well placed to further reduce the net debt incurred through the MBCC acquisition.
Sika is confident that it can successfully maintain its sustainable and profitable growth strategy in 2024 as the economic environment slowly improves.
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