SIKA AG

Record results for sales, operating profit, and net profit

Sika continued its success story in the 2018 financial year with record figures. Sales in local currencies increased by 13.6 % to CHF 7085.4 million. Operating profit (EBIT) rose by 5.5 % to CHF 945.9 million (previous year: CHF 896.3 million), while net profit grew by 5.9 % to CHF 687.1 million (previous year: CHF 649.0 million). The 16 strategic investments made during the year under review will continue to drive future growth. The Board of Directors is proposing to the 2019 Annual General Meeting a dividend increase of 10.8 %. The strategic goals for 2020 were confirmed.
 
Growth in all regions
In 2018, Sika generated sales of CHF 3167.3 million in the EMEA (Europe, Middle East, Africa) region (previous year: CHF 2735.7 million). This translates into growth of 14.1 % in local currencies. The core markets of Spain and the UK recorded high single‐digit growth, while double‐digit rates were achieved in Eastern Europe. In particular, the recently founded national subsidiaries contributed to double‐digit growth in Africa. All Sika’s target markets contributed to the good overall result with high single‐digit rates of organic growth.
Sales in the recently created Americas region grew by 11.7 % in local currencies to CHF 1820.5 million (previous year: CHF 1684.0 million). Investment in the country’s rapidly growing metropolitan areas was the driving force behind double‐digit growth in the United States. Business performance in Brazil and Colombia was higher than average. The organizational amalgamation of the two formerly separate North America and Latin America regions to form the Americas region resulted in improvements through various new initiatives in procurement, innovation, talent development, and operations.
Sales in the Asia/Pacific region increased by 5.5 % in local currencies to CHF 1177.2 million (previous year: CHF 1121.4 million). The region’s organic growth during the fourth quarter of 2018 reached 7.5 %, the highest quarterly figure for the past three years. India, Indonesia, and China recorded the strongest growth rates. The national subsidiary established by Sika in Bangladesh in 2017 has already made a name for itself as a leading supplier of high‐performance system solutions in major infrastructure projects such as expressways, railway lines, and energy supply facilities.
 
Outlook
Sika expects sales to increase by 6-8 % in 2019, in accordance with the Group’s 2020 growth strategy, and anticipates an over‐proportional rise in profits. Depending on when the Parex transaction is completed, sales are expected to exceed CHF 8 billion. Implementation of the growth strategy will continue in 2019 with the opening of seven to nine new factories and further acquisitions.

www.sika.com

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