Sika reports higher sales, earnings in 2022

Sika reports higher sales, earnings in 2022

Company exceeded the CHF 10 billion sales mark for the first time with sales of CHF 10,491.8 million in 2022

  • By ICN Bureau | February 19, 2023
Sika performed well against an increasingly difficult economic backdrop and exceeded the CHF 10 billion sales mark for the first time with sales of CHF 10,491.8 million. This corresponds to an increase in Swiss francs of 13.4% year-on-year. The currency effect came to –2.4%. Operating profit (EBIT) increased by 13.5%, reaching a new record figure of CHF 1,579.7 million. This equates to an EBIT margin of 15.1%.
"We have achieved record results both in terms of sales and profit in a challenging market environment. For the first time in Sika’s history, we generated sales in excess of CHF 10 billion. In parallel, we have reduced our greenhouse gas emissions and will continue to deploy innovations on our path to net zero. We have and will generate value for our stakeholders by investing in our products and services, our innovation capabilities and most importantly in our people. Our more than 27,500 colleagues around the world have made a significant contribution to this success with great commitment, exemplary agility and a clear customer focus – for this I want to thank each and everyone." said Thomas Hasler, Chief Executive Officer, Sika AG.
Sika not only achieved an all-time high in sales in fiscal 2022; it also set a record in profit. Price increases, rigorous cost management, efficiency gains, and synergies from acquisitions allowed the company to largely offset the significant rise in raw material costs. A profit from the divestment of the European industrial coatings business came alongside expense relating to the MBCC acquisition. EBIT amounted to CHF 1,579.7 million (previous year: CHF 1,391.4 million) increasing by 13.5%. The EBIT margin expanded to 15.1% (previous year: 15.0%). Operating free cash flow came to CHF 865.2 million, and is therefore below the previous year’s level (CHF 908.4 million) due to increased investments in the maintenance and expansion of factories.
At the Annual General Meeting on March 28, 2023, the Board of Directors will propose to increase the gross dividend by 10.3% to CHF 3.20 (previous year: CHF 2.90) given the record high earnings of 2022. This is aligned with the Group profit increase of approximately 10%.
For 2023, Sika is confident that it can successfully continue its strategy built on sustainable and profitable growth even in a challenging economic environment. Thanks to its innovative technologies, Sika is the partner of choice for many customers in the construction and industrial sectors. In addition, the global construction industry is being shaped by the megatrend of climate change as well as by increasing automation, digitalization, and easy-to-apply products. With its broad product portfolio, Sika is well positioned to offer its customers solutions that allow them to reduce their carbon footprint while facilitating long-lasting, resource-saving construction. On top of this, Sika is benefiting from global, state-driven economic programs supporting infrastructure expansion and investments in climate protection. 
For fiscal 2023, Sika expects sales to rise by 6–8% in local currencies and anticipates an over-proportional increase in EBIT (excluding the impact of the MBCC acquisition). 

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