Latest news with #SIXExchangeRegulationListingRules
Yahoo
2 days ago
- Business
- Yahoo
UBS statement on regulatory proposals made by the Swiss government
ZURICH, June 06, 2025--(BUSINESS WIRE)--Regulatory News: UBS (NYSE:UBS) (SWX:UBSN): Ad hoc announcement pursuant to Article 53 of the SIX Exchange Regulation Listing Rules UBS supports in principle most of the regulatory proposals the Swiss Federal Council published today.1 However, UBS strongly disagrees with the extreme increase in capital requirements that has been proposed. These changes would result in capital requirements that are neither proportionate nor internationally aligned. The proposals would require UBS to fully deduct investments in foreign subsidiaries from its CET1 capital. UBS would also need to fully deduct deferred tax assets on temporary differences (TD DTAs) and capitalized software from its CET1 capital. Furthermore, the proposals would necessitate an increase in prudential valuation adjustments (PVAs). Based on published financial information from the first quarter of 2025, and given UBS AG's target CET1 capital ratio of between 12.5% and 13%, UBS AG would be required to hold additional estimated CET1 capital of around USD 24bn on a pro-forma basis, if the recommendations are implemented as proposed. This includes around USD 23bn related to the full deduction of UBS AG's investments in foreign subsidiaries. These pro-forma figures also reflect previously announced expected capital repatriations of around USD 5bn. The incremental CET1 capital of around USD 24bn required at UBS AG would result in a CET1 capital ratio at the UBS Group AG (consolidated) level of around 19%. At Group level, the proposed measures related to TD DTAs, capitalized software and PVAs would eliminate capital recognition for these items in a manner misaligned with international standards. This would reduce the CET1 capital ratio at UBS Group to around 17%, underrepresenting UBS's capital strength. Further information is available at The additional capital of USD 24bn would be in addition to the previously communicated incremental capital of around USD 18bn UBS will have to hold as a result of the acquisition of Credit Suisse in order to meet existing regulations. This includes about USD 9bn to remove the regulatory concessions granted to Credit Suisse and around USD 9bn to meet the current progressive requirements due to the enlarged size of the combined business. As a result, UBS would be required to hold about USD 42bn in additional CET1 capital in total. As none of the regulatory changes are expected to become effective before 2027, UBS Group AG maintains its target of achieving an underlying return on CET1 capital of around 15% and an underlying cost/income ratio of <70% by the end of 2026 (both on an exit rate basis). UBS will provide an update on its longer-term returns targets when there is more clarity on the timing of potential changes and when the likely final outcome becomes more visible. ________________________________ [1] The proposals are available on the website of the Swiss government at UBS also reaffirms its capital return intentions for 2025. These include accruing for an increase of around 10% in the ordinary dividend per share and repurchasing up to USD 2bn of shares in the second half of the year, for a total of up to USD 3bn. This plan continues to be subject to UBS Group maintaining a CET1 capital ratio target of around 14% and achieving its financial targets and is consistent with UBS's previously communicated plans and conservative approach. UBS will communicate its 2026 capital returns ambitions with its fourth quarter and full-year financial results for 2025. UBS will actively engage in the consultation process with all relevant stakeholders and contribute to evaluating alternatives and effective solutions that lead to regulatory change proposals with a reasonable cost/benefit outcome. UBS will also evaluate appropriate measures, if and where possible, to address the negative effects that extreme regulations would have on its shareholders. As the largest truly global wealth manager and leading bank in Switzerland, with competitive global investment bank and asset management capabilities, UBS brings financial stability, expertise, economic benefits and international know-how to its home country and to all its clients globally. UBS remains committed to its diversified business model and its unique regional footprint as well as successfully completing the integration of Credit Suisse in the best interest of all stakeholders. UBS is reviewing the substantial amount of information published today and will share its further assessment in due course. Cautionary Statement Regarding Forward-Looking Statements This news release contains statements that constitute "forward-looking statements," including but not limited to management's outlook for UBS's financial performance, statements relating to the anticipated effect of transactions and strategic initiatives on UBS's business and future development and goals or intentions to achieve climate, sustainability and other social objectives. While these forward-looking statements represent UBS's judgments, expectations and objectives concerning the matters described, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from UBS's expectations. In particular, the global economy may suffer significant adverse effects from increasing political tensions between world powers, changes to international trade policies, including those related to tariffs and trade barriers, and ongoing conflicts in the Middle East, as well as the continuing Russia–Ukraine war. UBS's acquisition of the Credit Suisse Group has materially changed its outlook and strategic direction and introduced new operational challenges. The integration of the Credit Suisse entities into the UBS structure is expected to continue through 2026 and presents significant operational and execution risk, including the risks that UBS may be unable to achieve the cost reductions and business benefits contemplated by the transaction, that it may incur higher costs to execute the integration of Credit Suisse and that the acquired business may have greater risks or liabilities than expected. Following the failure of Credit Suisse, Switzerland is considering significant changes to its capital, resolution and regulatory regime, which, if proposed and adopted, may significantly increase our capital requirements or impose other costs on UBS. These factors create greater uncertainty about forward-looking statements. Other factors that may affect UBS's performance and ability to achieve its plans, outlook and other objectives also include, but are not limited to: (i) the degree to which UBS is successful in the execution of its strategic plans, including its cost reduction and efficiency initiatives and its ability to manage its levels of risk-weighted assets (RWA) and leverage ratio denominator (LRD), liquidity coverage ratio and other financial resources, including changes in RWA assets and liabilities arising from higher market volatility and the size of the combined Group; (ii) the degree to which UBS is successful in implementing changes to its businesses to meet changing market, regulatory and other conditions; (iii) inflation and interest rate volatility in major markets; (iv) developments in the macroeconomic climate and in the markets in which UBS operates or to which it is exposed, including movements in securities prices or liquidity, credit spreads, currency exchange rates, residential and commercial real estate markets, general economic conditions, and changes to national trade policies on the financial position or creditworthiness of UBS's clients and counterparties, as well as on client sentiment and levels of activity; (v) changes in the availability of capital and funding, including any adverse changes in UBS's credit spreads and credit ratings of UBS, as well as availability and cost of funding to meet requirements for debt eligible for total loss-absorbing capacity (TLAC); (vi) changes in central bank policies or the implementation of financial legislation and regulation in Switzerland, the US, the UK, the EU and other financial centers that have imposed, or resulted in, or may do so in the future, more stringent or entity-specific capital, TLAC, leverage ratio, net stable funding ratio, liquidity and funding requirements, heightened operational resilience requirements, incremental tax requirements, additional levies, limitations on permitted activities, constraints on remuneration, constraints on transfers of capital and liquidity and sharing of operational costs across the Group or other measures, and the effect these will or would have on UBS's business activities; (vii) UBS's ability to successfully implement resolvability and related regulatory requirements and the potential need to make further changes to the legal structure or booking model of UBS in response to legal and regulatory requirements and any additional requirements due to its acquisition of the Credit Suisse Group, or other developments; (viii) UBS's ability to maintain and improve its systems and controls for complying with sanctions in a timely manner and for the detection and prevention of money laundering to meet evolving regulatory requirements and expectations, in particular in the current geopolitical turmoil; (ix) the uncertainty arising from domestic stresses in certain major economies; (x) changes in UBS's competitive position, including whether differences in regulatory capital and other requirements among the major financial centers adversely affect UBS's ability to compete in certain lines of business; (xi) changes in the standards of conduct applicable to its businesses that may result from new regulations or new enforcement of existing standards, including measures to impose new and enhanced duties when interacting with customers and in the execution and handling of customer transactions; (xii) the liability to which UBS may be exposed, or possible constraints or sanctions that regulatory authorities might impose on UBS, due to litigation, contractual claims and regulatory investigations, including the potential for disqualification from certain businesses, potentially large fines or monetary penalties, or the loss of licenses or privileges as a result of regulatory or other governmental sanctions, as well as the effect that litigation, regulatory and similar matters have on the operational risk component of its RWA; (xiii) UBS's ability to retain and attract the employees necessary to generate revenues and to manage, support and control its businesses, which may be affected by competitive factors; (xiv) changes in accounting or tax standards or policies, and determinations or interpretations affecting the recognition of gain or loss, the valuation of goodwill, the recognition of deferred tax assets and other matters; (xv) UBS's ability to implement new technologies and business methods, including digital services, artificial intelligence and other technologies, and ability to successfully compete with both existing and new financial service providers, some of which may not be regulated to the same extent; (xvi) limitations on the effectiveness of UBS's internal processes for risk management, risk control, measurement and modeling, and of financial models generally; (xvii) the occurrence of operational failures, such as fraud, misconduct, unauthorized trading, financial crime, cyberattacks, data leakage and systems failures, the risk of which is increased with persistently high levels of cyberattack threats; (xviii) restrictions on the ability of UBS Group AG, UBS AG and regulated subsidiaries of UBS AG to make payments or distributions, including due to restrictions on the ability of its subsidiaries to make loans or distributions, directly or indirectly, or, in the case of financial difficulties, due to the exercise by FINMA or the regulators of UBS's operations in other countries of their broad statutory powers in relation to protective measures, restructuring and liquidation proceedings; (xix) the degree to which changes in regulation, capital or legal structure, financial results or other factors may affect UBS's ability to maintain its stated capital return objective; (xx) uncertainty over the scope of actions that may be required by UBS, governments and others for UBS to achieve goals relating to climate, environmental and social matters, as well as the evolving nature of underlying science and industry and the possibility of conflict between different governmental standards and regulatory regimes; (xxi) the ability of UBS to access capital markets; (xxii) the ability of UBS to successfully recover from a disaster or other business continuity problem due to a hurricane, flood, earthquake, terrorist attack, war, conflict, pandemic, security breach, cyberattack, power loss, telecommunications failure or other natural or man-made event; and (xxiii) the effect that these or other factors or unanticipated events, including media reports and speculations, may have on its reputation and the additional consequences that this may have on its business and performance. The sequence in which the factors above are presented is not indicative of their likelihood of occurrence or the potential magnitude of their consequences. UBS's business and financial performance could be affected by other factors identified in its past and future filings and reports, including those filed with the US Securities and Exchange Commission (the SEC). More detailed information about those factors is set forth in documents furnished by UBS and filings made by UBS with the SEC, including the UBS Group AG and UBS AG Annual Reports on Form 20-F for the year ended 31 December 2024. UBS is not under any obligation to (and expressly disclaims any obligation to) update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise. View source version on Contacts UBS Group AG and UBS AG Investor contactSwitzerland: +41-44-234 41 00Americas: +1 212 882 57 34 Media contactSwitzerland: +41-44-234 85 00UK: +44-207-567 47 14Americas:+1-212-882 58 58APAC: +852-297-1 82 00
Business Wire
2 days ago
- Business
- Business Wire
UBS statement on regulatory proposals made by the Swiss government
UBS (NYSE:UBS) (SWX:UBSN): Ad hoc announcement pursuant to Article 53 of the SIX Exchange Regulation Listing Rules UBS supports in principle most of the regulatory proposals the Swiss Federal Council published today. 1 However, UBS strongly disagrees with the extreme increase in capital requirements that has been proposed. These changes would result in capital requirements that are neither proportionate nor internationally aligned. The proposals would require UBS to fully deduct investments in foreign subsidiaries from its CET1 capital. UBS would also need to fully deduct deferred tax assets on temporary differences (TD DTAs) and capitalized software from its CET1 capital. Furthermore, the proposals would necessitate an increase in prudential valuation adjustments (PVAs). Based on published financial information from the first quarter of 2025, and given UBS AG's target CET1 capital ratio of between 12.5% and 13%, UBS AG would be required to hold additional estimated CET1 capital of around USD 24bn on a pro-forma basis, if the recommendations are implemented as proposed. This includes around USD 23bn related to the full deduction of UBS AG's investments in foreign subsidiaries. These pro-forma figures also reflect previously announced expected capital repatriations of around USD 5bn. The incremental CET1 capital of around USD 24bn required at UBS AG would result in a CET1 capital ratio at the UBS Group AG (consolidated) level of around 19%. At Group level, the proposed measures related to TD DTAs, capitalized software and PVAs would eliminate capital recognition for these items in a manner misaligned with international standards. This would reduce the CET1 capital ratio at UBS Group to around 17%, underrepresenting UBS's capital strength. Further information is available at The additional capital of USD 24bn would be in addition to the previously communicated incremental capital of around USD 18bn UBS will have to hold as a result of the acquisition of Credit Suisse in order to meet existing regulations. This includes about USD 9bn to remove the regulatory concessions granted to Credit Suisse and around USD 9bn to meet the current progressive requirements due to the enlarged size of the combined business. As a result, UBS would be required to hold about USD 42bn in additional CET1 capital in total. As none of the regulatory changes are expected to become effective before 2027, UBS Group AG maintains its target of achieving an underlying return on CET1 capital of around 15% and an underlying cost/income ratio of <70% by the end of 2026 (both on an exit rate basis). UBS will provide an update on its longer-term returns targets when there is more clarity on the timing of potential changes and when the likely final outcome becomes more visible. UBS also reaffirms its capital return intentions for 2025. These include accruing for an increase of around 10% in the ordinary dividend per share and repurchasing up to USD 2bn of shares in the second half of the year, for a total of up to USD 3bn. This plan continues to be subject to UBS Group maintaining a CET1 capital ratio target of around 14% and achieving its financial targets and is consistent with UBS's previously communicated plans and conservative approach. UBS will communicate its 2026 capital returns ambitions with its fourth quarter and full-year financial results for 2025. UBS will actively engage in the consultation process with all relevant stakeholders and contribute to evaluating alternatives and effective solutions that lead to regulatory change proposals with a reasonable cost/benefit outcome. UBS will also evaluate appropriate measures, if and where possible, to address the negative effects that extreme regulations would have on its shareholders. As the largest truly global wealth manager and leading bank in Switzerland, with competitive global investment bank and asset management capabilities, UBS brings financial stability, expertise, economic benefits and international know-how to its home country and to all its clients globally. UBS remains committed to its diversified business model and its unique regional footprint as well as successfully completing the integration of Credit Suisse in the best interest of all stakeholders. UBS is reviewing the substantial amount of information published today and will share its further assessment in due course. Cautionary Statement Regarding Forward-Looking Statements This news release contains statements that constitute 'forward-looking statements,' including but not limited to management's outlook for UBS's financial performance, statements relating to the anticipated effect of transactions and strategic initiatives on UBS's business and future development and goals or intentions to achieve climate, sustainability and other social objectives. While these forward-looking statements represent UBS's judgments, expectations and objectives concerning the matters described, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from UBS's expectations. In particular, the global economy may suffer significant adverse effects from increasing political tensions between world powers, changes to international trade policies, including those related to tariffs and trade barriers, and ongoing conflicts in the Middle East, as well as the continuing Russia–Ukraine war. UBS's acquisition of the Credit Suisse Group has materially changed its outlook and strategic direction and introduced new operational challenges. The integration of the Credit Suisse entities into the UBS structure is expected to continue through 2026 and presents significant operational and execution risk, including the risks that UBS may be unable to achieve the cost reductions and business benefits contemplated by the transaction, that it may incur higher costs to execute the integration of Credit Suisse and that the acquired business may have greater risks or liabilities than expected. Following the failure of Credit Suisse, Switzerland is considering significant changes to its capital, resolution and regulatory regime, which, if proposed and adopted, may significantly increase our capital requirements or impose other costs on UBS. These factors create greater uncertainty about forward-looking statements. Other factors that may affect UBS's performance and ability to achieve its plans, outlook and other objectives also include, but are not limited to: (i) the degree to which UBS is successful in the execution of its strategic plans, including its cost reduction and efficiency initiatives and its ability to manage its levels of risk-weighted assets (RWA) and leverage ratio denominator (LRD), liquidity coverage ratio and other financial resources, including changes in RWA assets and liabilities arising from higher market volatility and the size of the combined Group; (ii) the degree to which UBS is successful in implementing changes to its businesses to meet changing market, regulatory and other conditions; (iii) inflation and interest rate volatility in major markets; (iv) developments in the macroeconomic climate and in the markets in which UBS operates or to which it is exposed, including movements in securities prices or liquidity, credit spreads, currency exchange rates, residential and commercial real estate markets, general economic conditions, and changes to national trade policies on the financial position or creditworthiness of UBS's clients and counterparties, as well as on client sentiment and levels of activity; (v) changes in the availability of capital and funding, including any adverse changes in UBS's credit spreads and credit ratings of UBS, as well as availability and cost of funding to meet requirements for debt eligible for total loss-absorbing capacity (TLAC); (vi) changes in central bank policies or the implementation of financial legislation and regulation in Switzerland, the US, the UK, the EU and other financial centers that have imposed, or resulted in, or may do so in the future, more stringent or entity-specific capital, TLAC, leverage ratio, net stable funding ratio, liquidity and funding requirements, heightened operational resilience requirements, incremental tax requirements, additional levies, limitations on permitted activities, constraints on remuneration, constraints on transfers of capital and liquidity and sharing of operational costs across the Group or other measures, and the effect these will or would have on UBS's business activities; (vii) UBS's ability to successfully implement resolvability and related regulatory requirements and the potential need to make further changes to the legal structure or booking model of UBS in response to legal and regulatory requirements and any additional requirements due to its acquisition of the Credit Suisse Group, or other developments; (viii) UBS's ability to maintain and improve its systems and controls for complying with sanctions in a timely manner and for the detection and prevention of money laundering to meet evolving regulatory requirements and expectations, in particular in the current geopolitical turmoil; (ix) the uncertainty arising from domestic stresses in certain major economies; (x) changes in UBS's competitive position, including whether differences in regulatory capital and other requirements among the major financial centers adversely affect UBS's ability to compete in certain lines of business; (xi) changes in the standards of conduct applicable to its businesses that may result from new regulations or new enforcement of existing standards, including measures to impose new and enhanced duties when interacting with customers and in the execution and handling of customer transactions; (xii) the liability to which UBS may be exposed, or possible constraints or sanctions that regulatory authorities might impose on UBS, due to litigation, contractual claims and regulatory investigations, including the potential for disqualification from certain businesses, potentially large fines or monetary penalties, or the loss of licenses or privileges as a result of regulatory or other governmental sanctions, as well as the effect that litigation, regulatory and similar matters have on the operational risk component of its RWA; (xiii) UBS's ability to retain and attract the employees necessary to generate revenues and to manage, support and control its businesses, which may be affected by competitive factors; (xiv) changes in accounting or tax standards or policies, and determinations or interpretations affecting the recognition of gain or loss, the valuation of goodwill, the recognition of deferred tax assets and other matters; (xv) UBS's ability to implement new technologies and business methods, including digital services, artificial intelligence and other technologies, and ability to successfully compete with both existing and new financial service providers, some of which may not be regulated to the same extent; (xvi) limitations on the effectiveness of UBS's internal processes for risk management, risk control, measurement and modeling, and of financial models generally; (xvii) the occurrence of operational failures, such as fraud, misconduct, unauthorized trading, financial crime, cyberattacks, data leakage and systems failures, the risk of which is increased with persistently high levels of cyberattack threats; (xviii) restrictions on the ability of UBS Group AG, UBS AG and regulated subsidiaries of UBS AG to make payments or distributions, including due to restrictions on the ability of its subsidiaries to make loans or distributions, directly or indirectly, or, in the case of financial difficulties, due to the exercise by FINMA or the regulators of UBS's operations in other countries of their broad statutory powers in relation to protective measures, restructuring and liquidation proceedings; (xix) the degree to which changes in regulation, capital or legal structure, financial results or other factors may affect UBS's ability to maintain its stated capital return objective; (xx) uncertainty over the scope of actions that may be required by UBS, governments and others for UBS to achieve goals relating to climate, environmental and social matters, as well as the evolving nature of underlying science and industry and the possibility of conflict between different governmental standards and regulatory regimes; (xxi) the ability of UBS to access capital markets; (xxii) the ability of UBS to successfully recover from a disaster or other business continuity problem due to a hurricane, flood, earthquake, terrorist attack, war, conflict, pandemic, security breach, cyberattack, power loss, telecommunications failure or other natural or man-made event; and (xxiii) the effect that these or other factors or unanticipated events, including media reports and speculations, may have on its reputation and the additional consequences that this may have on its business and performance. The sequence in which the factors above are presented is not indicative of their likelihood of occurrence or the potential magnitude of their consequences. UBS's business and financial performance could be affected by other factors identified in its past and future filings and reports, including those filed with the US Securities and Exchange Commission (the SEC). More detailed information about those factors is set forth in documents furnished by UBS and filings made by UBS with the SEC, including the UBS Group AG and UBS AG Annual Reports on Form 20-F for the year ended 31 December 2024. UBS is not under any obligation to (and expressly disclaims any obligation to) update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise.
Yahoo
15-04-2025
- Business
- Yahoo
SIKA IS GENERATING GROWTH IN Q1 DESPITE UNPREDICTABLE MARKETS AND CONTINUES INVESTING WORLDWIDE
Ad Hoc Announcement Pursuant to Article 53 of the SIX Exchange Regulation Listing Rules SIKA IS GENERATING GROWTH IN Q1 DESPITE UNPREDICTABLE MARKETS AND CONTINUES INVESTING WORLDWIDE Growth in local currencies of +1.9% (growth in CHF: +1.1%) Q1 sales of CHF 2,678.3 million (previous year: CHF 2,648.0 million) Organic growth of 0.9% Acquisition effect of 1.0% Targeted investment in future growth Acquisition of Elmich (Singapore), Cromar (UK), and HPS (USA) Opening of new factories in Singapore, Xi'an (China), Quito (Ecuador), and Ust-Kamenogorsk (Kazakhstan) Outlook for fiscal 2025: Sika confirms the outlook, but points to increased market uncertainties arising from potentially prolonged trade conflicts Expected sales increase in local currencies of 3-6% Over-proportional increase in EBITDA and EBITDA margin of between 19.5%-19.8% Confirmation of 2028 strategic mid-term targets for sustainable, profitable growth In the first quarter of the 2025 financial year Sika has continued to grow, despite less predictable global trade and ongoing geopolitical tensions. In markets in which protectionist tariffs are hindering free trade, Sika's local supply chain and its systematic global production expansion over the past years are proving to be a strategic advantage. With over 400 factories worldwide, the company has a comprehensive production network in 102 countries and produces its state-of-the-art technologies locally. Sika is therefore not directly affected by tariffs and can reliably supply its customers even under challenging market conditions as well as continue to strengthen its leading position in the field of construction chemicals by gaining market share. In the first quarter of 2025, Sika generated record sales of CHF 2,678.3 million (previous year: CHF 2,648.0 million). This equates to an increase of 1.1% in Swiss francs. Sika once again succeeded in achieving organic growth in a declining overall market and grew by 0.9% in the first three months of the year. Thomas Hasler, CEO: 'In a challenging market environment we were again able to assert ourselves and grow against the market trend. We have a strong position in particular in the project and infrastructure business. With a clear focus and a comprehensive product portfolio we are targeting further growth in both areas. In addition, our proven 'local for local' strategy is the basis for our strong resilience, especially in times of global uncertainty and increasing trade barriers. We produce our solutions and innovations locally in our respective markets, close to our customers. In the US in particular, we have implemented this decentralized model successfully and now produce close to 100% of our products locally for the US market. The same is true for Europe and Asia, where our local production network also gives us a strategic competitive advantage.' INVESTMENT IN FURTHER GROWTH IN ALL REGIONS In the first quarter, Sika generated local currency growth in EMEA and Americas and gained market share in all regions. Investments were made in all regions in the acquisition of small and medium-sized enterprises and in the expansion of production facilities for future growth. In the first three months of 2025, sales in the EMEA region (Europe, Middle East, Africa) increased by 0.7% in local currencies (previous year: 22.4%). Conditions remain very challenging in the European construction markets. Compared to the same period last year, the region also had one working day less. Overall, Sika achieved a significant increase in sales in the countries in the Middle East and Africa. With its strong sales organization, Sika Germany is very well positioned to benefit from the infrastructure package approved by the German government for which around EUR 500 billion will be invested in modernizing and expanding infrastructure over a period of 10 years. The automotive and industrial sectors are still experiencing a downturn in the EMEA region. This is due to the falling production figures for new vehicles owing to persistently weak demand in Europe. Sika has invested in future growth in Europe. In the first quarter it acquired Cromar Building Products, a well-known provider of roofing systems in the UK. Cromar supplies its customers mainly via the distribution channel. With the acquisition Sika is developing substantial cross-selling potential and is targeting expansion in the roofing sector in the UK. Moreover, Sika has commissioned a new production facility in Ust-Kamenogorsk with production lines for mortar and concrete admixtures and a modern laboratory. The plant is Sika's fourth factory in Kazakhstan and is situated in an economically important industrial region in the eastern part of the country. In local currency terms, the Americas region achieved a 4.9% increase in sales (previous year: 21.1%). After a good start to the current financial year, the last month of the quarter saw the market unsettled by mixed signals in terms of US trade policy. Consequently, growth for Sika has slowed in North America, whereas last year's growth momentum in Latin America has continued. One positive effect comes from state-supported infrastructure projects in the US and commercial construction projects that are being implemented as part of the drive to relocate production in the USA. Thanks to Sika's local presence – almost 100% of all products and solutions sold in the USA are produced in the country – and its strong leading position in the renovation market, Sika outperformed the market as a whole. In the first quarter, Sika acquired HPS North America, Inc., a successful provider of materials for building finishing. The complete integration into Sika USA creates a strong platform for further expansion in the Building Finishing segment and facilitates considerable efficiency gains. Furthermore, investments were made in the expansion of the supply chain in Ecuador. By opening a new factory in Quito, Sika is reinforcing its presence and customer proximity in the country. The strategic investment enables Sika to leverage the full market potential of Ecuador for its mortar solutions in the field of interior walls, insulation, and tile adhesives. In Asia/Pacific, sales in the first three months of the current financial year have remained stable (previous year: 14.1% growth). Sika's sequential growth in the region has thus improved. Southeast Asia and the Automotive & Industry business posted strong growth where Sika was able to further increase the share of its technologies in vehicles of local and international manufacturers. Japan and India, two of the largest countries in the region, also contributed to the growth. China, the region's biggest country, experienced a continued downturn in the first quarter. Sika also invested in Asia/Pacific and acquired Elmich Pte Ltd, a Singapore-based company and a leading provider of green roofs and spaces for urban areas. With this move, Sika is expanding its regional offering of roofing systems and is also strengthening the specifications business in the region. In addition, Sika opened two state-of-the-art production facilities in Singapore and Xi'an, in the northwest of China. Whereas the new plant in Singapore will specialize in mortar production, the facility in Xi'an will produce tile adhesives, cementitious waterproofing, and flooring solutions. OUTLOOK Sika confirms the outlook, but points to increased market uncertainties arising from potentially prolonged trade conflicts. Especially in a protectionist market environment, Sika's long-standing investments in a 'local for local' strategy should pay off and drive resilient results. For the 2025 fiscal year, Sika is expecting sales growth in local currencies of 3-6%. The company is anticipating an over-proportional increase in EBITDA and an EBITDA margin in the range of 19.5%-19.8%. Sika is also confirming its 2028 strategic medium-term targets for sustainable, profitable growth. NET SALES IN THE FIRST THREE MONTHS OF 2025 In CHF mn 1.1.2024 -31.3.2024 1.1.2025 -31.3.2025 Year-on-year change(+/- in %) In CHF In local currencies Currency effect Acquisition effect Organic growth By region EMEA 1,210.7 1,204.1 -0.5 0.7 -1.2 0.3 0.4 Americas 903.2 934.7 3.5 4.9 -1.4 2.5 2.4 Asia/Pacific 534.1 539.5 1.0 0.0 1.0 0.4 -0.4 Net sales 2,648.0 2,678.3 1.1 1.9 -0.8 1.0 0.9 Products for construction industry 2,211.5 2,248.0 1.7 2.5 -0.8 1.2 1.3 Products for industrial manufacturing 436.5 430.3 -1.4 -1.0 -0.4 0.0 -1.0 FINANCIAL CALENDAR Half-Year Report 2025 Tuesday, July 29, 2025 Sika Innovation Lab Tuesday, October 7, 2025 Results first nine months 2025 Friday, October 24, 2025 Net sales 2025 Tuesday, January 13, 2026 Media conference/analyst presentation on the 2025 full-year results Friday, February 20, 2026 58th Annual General Meeting Tuesday, March 24, 2026 Sales first quarter 2026 Tuesday, April 14, 2026 SIKA CORPORATE PROFILESika is a specialty chemicals company with a globally leading position in the development and production of systems and products for bonding, sealing, damping, reinforcing, and protection in the building sector and industry. Sika has subsidiaries in 102 countries around the world, produces in over 400 factories, and develops innovative technologies for customers worldwide. In doing so, it plays a crucial role in enabling the transformation of the construction and transportation industries toward greater environmental compatibility. Its 34,000 or so employees generated annual sales of CHF 11.76 billion in 2024. CONTACTDominik SlappnigCorporate Communications &Investor Relations+41 58 436 68 The media release can be downloaded from the following link:Media Release
Yahoo
21-02-2025
- Business
- Yahoo
SIKA WITH RECORD RESULTS – JUMP IN NET PROFIT OF 17.4%
Ad Hoc Announcement Pursuant to Article 53 of the SIX Exchange Regulation Listing Rules SIKA WITH RECORD RESULTS – JUMP IN NET PROFIT OF 17.4% Sika posts net sales of CHF 11,763.1 million (+4.7% in CHF) in 2024 Sales growth of 7.4% in local currencies Increase in material margin to 54.5% (2023: 53.6%) 11.0% growth in operating profit before depreciation and amortization (EBITDA) to CHF 2,269.5 million (previous year: CHF 2,044.7 million) Strong increase in EBITDA margin to 19.3% (2023: 18.2%) 17.4% jump in net profit to CHF 1,247.6 million (previous year: CHF 1,062.6 million) 16.7% increase in diluted earnings per share to CHF 7.76 (previous year: CHF 6.65) Proposed dividend per share of CHF 3.60 (previous year: CHF 3.30) Outlook for fiscal 2025: Expected sales increase in local currencies of 3-6%, and over-proportional increase in EBITDA and rise in EBITDA margin to 19.5%-19.8% Confirmation of 2028 strategic mid-term targets for sustainable, profitable growth Sika can look back on a positive business development in the past fiscal year. The company reports a strong performance in a market that remained very challenging, achieving record results. In 2024, Sika generated net sales of CHF 11,763.1 million (previous year: CHF 11,238.6 million). In local currencies this corresponds to an increase of 7.4%. Sales growth in Swiss francs amounted to 4.7%. This figure includes a foreign currency impact of -2.7%. Organic growth was 1.1% above the previous year's level. In the second half of the year, organic growth came to 1.7%. Sika thus once again expanded its market share in the past fiscal year. Thomas Hasler, CEO: 'Despite a market environment that remains very challenging, we achieved new record sales and an over-proportional increase in profits. We are proud of this performance and have demonstrated our ability to expand our market shares even under demanding conditions and to fully exploit the strengths of the MBCC acquisition, our numerous growth initiatives and our powerful and sustainable product innovations. We have positioned ourselves as a strong player and will continue to drive growth and exploit business opportunities for Sika. Our more than 34,000 employees have once again delivered outstanding results and have made a significant contribution to Sika's success with their positive mindset and motivation – I would like to thank them most sincerely for this.' PRONOUNCED IMPROVEMENT IN MATERIAL MARGIN – OVER-PROPORTIONAL INCREASE IN PROFITABILITYIn 2024, Sika significantly increased its material margin to 54.5% (previous year: 53.6%), which is within the expected bandwidth of 54-55%. EBITDA increased over-proportionally by 11.0% to CHF 2,269.5 million (previous year: CHF 2,044.7 million), a new record level. The EBITDA margin reached 19.3% (previous year: 18.2%). Net profit also reached a new record level at CHF 1,247.6 million which is 17.4% higher than previous year (previous year: CHF 1,062.6 million). With a high operating free cash flow of CHF 1,402.9 million (previous year: CHF 1,441.5 million), or 11.9% of sales, well above the strategic target of 10%, Sika reduced its indebtedness in 2024 and further strengthened its balance sheet. GROWTH AND MARKET SHARE GAINS IN ALL REGIONSAll regions performed well, contributing to Sika's sustained growth and expansion of market share. Sika thus succeeded in achieving further organic growth in the past fiscal year, even under difficult market conditions. The EMEA region (Europe, Middle East, Africa) reported a sales increase in local currencies of 7.3% (previous year: 14.1%). In 2024, the market environment in the European construction markets was very challenging, while countries in the Middle East and Africa were able to greatly expand their business activities. Contrary to the market trend, Sika was able to perform well in a negative market in Germany, while southern countries such as Italy and Spain achieved slight growth over the course of the year. The automotive and industrial business declined. This is due in particular to falling demand for new vehicles in Europe. Only the sale of hybrid vehicles increased in 2024. In local currency terms, the Americas region achieved an 11.2% increase in sales (previous year: 15.0%). The year 2024 was the first time that revenues in the region surpassed CHF 4 billion. Sika USA posted steady, strong growth. State-supported infrastructure projects and commercial construction projects that are being implemented as part of the drive to relocate production in the USA are supporting the positive trend. Thanks to Sika's local presence – close to 100% of all the products and solutions that are sold in the USA are manufactured in the USA – and strong position in the refurbishment business, Sika outperformed the market. Latin America also contributed to the positive trend in the region with solid growth. Sales in the Asia/Pacific region rose by 2.4% in local currencies (previous year: 14.7%). Despite government support measures, the Chinese construction market remains markedly negative. This is reflected particularly in Sika's declining project business and, to some extent, in its distribution business. By contrast, Southeast Asia picked up momentum over the course of 2024 and achieved high single-digit organic growth. In the automotive and industry business, Sika continued to increase the share of its technologies in vehicles of local and international manufacturers in China, Japan, and India. DIVIDEND INCREASE AND NEW APPOINTMENT TO THE BOARD OF DIRECTORSIn view of the good results, at the Annual General Meeting to be held on March 25, 2025, the Board of Directors will be proposing to shareholders that the gross dividend per share be increased from CHF 3.30 to CHF 3.60 (+9.1%). Half of the payment is to be distributed from the reserves from capital contribution. Sika has increased its dividend at a double-digit average annual rate for the last 25 years. At the Annual General Meeting on March 25, 2025, Kwok Wang Ng will be nominated for election to the Board of Directors. Monika Ribar, who has been a member of the Board of Directors since 2011, will not be standing for re-election. OUTLOOK Sika is confident to successfully continue to execute on its strategy and deliver sustainable, profitable growth in a slowly recovering economic environment. Sika is confirming its 2028 strategic mid-term targets for sustainable, profitable growth. For the 2025 fiscal year, Sika is expecting sales growth in local currencies of 3-6%. The company expects a further over-proportional increase in EBITDA and an expansion of the EBITDA margin to 19.5%-19.8%.KEY FIGURES 2024 in CHF mn as % ofnet sales 2023 as % ofnet sales 2024 Δ in % Net sales 11,238.6 11,763.1 +4.7 Gross result 53.6 6,024.8 54.5 6,416.0 +6.5 Operating profit beforedepreciation (EBITDA) 18.2 2,044.7 19.3 2,269.5 +11.0 Operating profit (EBIT) 13.8 1,549.1 14.6 1,713.9 +10.6 Net profit 9.5 1,062.6 10.6 1,247.6 +17.4 Net profit per share (EPS) in CHF1 6.82 7.76 +13.8 Operating free cash flow 12.8 1,441.5 11.9 1,402.9 -2.7 Balance sheet total 15,049.2 15,977.2 +6.2 Shareholders' equity 5,933.2 7,046.8 Equity ratio in % 39.4 44.1 Net working capital 19.1 2,145.6 19.7 2,311.6 ROCE in % 16.3 14.2 Number of employees 33,547 34,476 +2.8 1 undiluted The Annual Report and the media conference/analyst presentation on the 2024 financial year can be downloaded at Link to Annual Report: Link to live transmission of the media, investor, and analyst presentation of February 21, 2025, 10.00 a.m. (CET): FINANCIAL CALENDAR 57th Annual General Meeting Net sales first quarter 2025 Half-Year Report 2025 Capital Markets Day Results first nine months 2025 Net sales 2025 Media conference/analyst presentation on 2025 full-year results Tuesday, March 25, 2025Tuesday, April 15, 2025Tuesday, July 29, 2025 Tuesday, October 7, 2025Friday, October 24, 2025Tuesday, January 13, 2026Friday, February 20, 2026 SIKA AG CORPORATE PROFILESika is a specialty chemicals company with a globally leading position in the development and production of systems and products for bonding, sealing, damping, reinforcing, and protection in the building sector and industrial manufacturing. Sika has subsidiaries in 102 countries around the world and, in over 400 factories, produces innovative technologies for customers worldwide. In doing so, it plays a crucial role in enabling the transformation of the construction and transportation sector toward greater environmental compatibility. With more than 34,000 employees, the company generated sales of CHF 11.76 billion in 2024. CONTACTDominik SlappnigCorporate Communications &Investor Relations+41 58 436 68 The media release can be downloaded from the following link:Media Release Sign in to access your portfolio
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21-02-2025
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SIKA WITH RECORD RESULTS – JUMP IN NET PROFIT OF 17.4%
Ad Hoc Announcement Pursuant to Article 53 of the SIX Exchange Regulation Listing Rules SIKA WITH RECORD RESULTS – JUMP IN NET PROFIT OF 17.4% Sika posts net sales of CHF 11,763.1 million (+4.7% in CHF) in 2024 Sales growth of 7.4% in local currencies Increase in material margin to 54.5% (2023: 53.6%) 11.0% growth in operating profit before depreciation and amortization (EBITDA) to CHF 2,269.5 million (previous year: CHF 2,044.7 million) Strong increase in EBITDA margin to 19.3% (2023: 18.2%) 17.4% jump in net profit to CHF 1,247.6 million (previous year: CHF 1,062.6 million) 16.7% increase in diluted earnings per share to CHF 7.76 (previous year: CHF 6.65) Proposed dividend per share of CHF 3.60 (previous year: CHF 3.30) Outlook for fiscal 2025: Expected sales increase in local currencies of 3-6%, and over-proportional increase in EBITDA and rise in EBITDA margin to 19.5%-19.8% Confirmation of 2028 strategic mid-term targets for sustainable, profitable growth Sika can look back on a positive business development in the past fiscal year. The company reports a strong performance in a market that remained very challenging, achieving record results. In 2024, Sika generated net sales of CHF 11,763.1 million (previous year: CHF 11,238.6 million). In local currencies this corresponds to an increase of 7.4%. Sales growth in Swiss francs amounted to 4.7%. This figure includes a foreign currency impact of -2.7%. Organic growth was 1.1% above the previous year's level. In the second half of the year, organic growth came to 1.7%. Sika thus once again expanded its market share in the past fiscal year. Thomas Hasler, CEO: 'Despite a market environment that remains very challenging, we achieved new record sales and an over-proportional increase in profits. We are proud of this performance and have demonstrated our ability to expand our market shares even under demanding conditions and to fully exploit the strengths of the MBCC acquisition, our numerous growth initiatives and our powerful and sustainable product innovations. We have positioned ourselves as a strong player and will continue to drive growth and exploit business opportunities for Sika. Our more than 34,000 employees have once again delivered outstanding results and have made a significant contribution to Sika's success with their positive mindset and motivation – I would like to thank them most sincerely for this.' PRONOUNCED IMPROVEMENT IN MATERIAL MARGIN – OVER-PROPORTIONAL INCREASE IN PROFITABILITYIn 2024, Sika significantly increased its material margin to 54.5% (previous year: 53.6%), which is within the expected bandwidth of 54-55%. EBITDA increased over-proportionally by 11.0% to CHF 2,269.5 million (previous year: CHF 2,044.7 million), a new record level. The EBITDA margin reached 19.3% (previous year: 18.2%). Net profit also reached a new record level at CHF 1,247.6 million which is 17.4% higher than previous year (previous year: CHF 1,062.6 million). With a high operating free cash flow of CHF 1,402.9 million (previous year: CHF 1,441.5 million), or 11.9% of sales, well above the strategic target of 10%, Sika reduced its indebtedness in 2024 and further strengthened its balance sheet. GROWTH AND MARKET SHARE GAINS IN ALL REGIONSAll regions performed well, contributing to Sika's sustained growth and expansion of market share. Sika thus succeeded in achieving further organic growth in the past fiscal year, even under difficult market conditions. The EMEA region (Europe, Middle East, Africa) reported a sales increase in local currencies of 7.3% (previous year: 14.1%). In 2024, the market environment in the European construction markets was very challenging, while countries in the Middle East and Africa were able to greatly expand their business activities. Contrary to the market trend, Sika was able to perform well in a negative market in Germany, while southern countries such as Italy and Spain achieved slight growth over the course of the year. The automotive and industrial business declined. This is due in particular to falling demand for new vehicles in Europe. Only the sale of hybrid vehicles increased in 2024. In local currency terms, the Americas region achieved an 11.2% increase in sales (previous year: 15.0%). The year 2024 was the first time that revenues in the region surpassed CHF 4 billion. Sika USA posted steady, strong growth. State-supported infrastructure projects and commercial construction projects that are being implemented as part of the drive to relocate production in the USA are supporting the positive trend. Thanks to Sika's local presence – close to 100% of all the products and solutions that are sold in the USA are manufactured in the USA – and strong position in the refurbishment business, Sika outperformed the market. Latin America also contributed to the positive trend in the region with solid growth. Sales in the Asia/Pacific region rose by 2.4% in local currencies (previous year: 14.7%). Despite government support measures, the Chinese construction market remains markedly negative. This is reflected particularly in Sika's declining project business and, to some extent, in its distribution business. By contrast, Southeast Asia picked up momentum over the course of 2024 and achieved high single-digit organic growth. In the automotive and industry business, Sika continued to increase the share of its technologies in vehicles of local and international manufacturers in China, Japan, and India. DIVIDEND INCREASE AND NEW APPOINTMENT TO THE BOARD OF DIRECTORSIn view of the good results, at the Annual General Meeting to be held on March 25, 2025, the Board of Directors will be proposing to shareholders that the gross dividend per share be increased from CHF 3.30 to CHF 3.60 (+9.1%). Half of the payment is to be distributed from the reserves from capital contribution. Sika has increased its dividend at a double-digit average annual rate for the last 25 years. At the Annual General Meeting on March 25, 2025, Kwok Wang Ng will be nominated for election to the Board of Directors. Monika Ribar, who has been a member of the Board of Directors since 2011, will not be standing for re-election. OUTLOOK Sika is confident to successfully continue to execute on its strategy and deliver sustainable, profitable growth in a slowly recovering economic environment. Sika is confirming its 2028 strategic mid-term targets for sustainable, profitable growth. For the 2025 fiscal year, Sika is expecting sales growth in local currencies of 3-6%. The company expects a further over-proportional increase in EBITDA and an expansion of the EBITDA margin to 19.5%-19.8%.KEY FIGURES 2024 in CHF mn as % ofnet sales 2023 as % ofnet sales 2024 Δ in % Net sales 11,238.6 11,763.1 +4.7 Gross result 53.6 6,024.8 54.5 6,416.0 +6.5 Operating profit beforedepreciation (EBITDA) 18.2 2,044.7 19.3 2,269.5 +11.0 Operating profit (EBIT) 13.8 1,549.1 14.6 1,713.9 +10.6 Net profit 9.5 1,062.6 10.6 1,247.6 +17.4 Net profit per share (EPS) in CHF1 6.82 7.76 +13.8 Operating free cash flow 12.8 1,441.5 11.9 1,402.9 -2.7 Balance sheet total 15,049.2 15,977.2 +6.2 Shareholders' equity 5,933.2 7,046.8 Equity ratio in % 39.4 44.1 Net working capital 19.1 2,145.6 19.7 2,311.6 ROCE in % 16.3 14.2 Number of employees 33,547 34,476 +2.8 1 undiluted The Annual Report and the media conference/analyst presentation on the 2024 financial year can be downloaded at Link to Annual Report: Link to live transmission of the media, investor, and analyst presentation of February 21, 2025, 10.00 a.m. (CET): FINANCIAL CALENDAR 57th Annual General Meeting Net sales first quarter 2025 Half-Year Report 2025 Capital Markets Day Results first nine months 2025 Net sales 2025 Media conference/analyst presentation on 2025 full-year results Tuesday, March 25, 2025Tuesday, April 15, 2025Tuesday, July 29, 2025 Tuesday, October 7, 2025Friday, October 24, 2025Tuesday, January 13, 2026Friday, February 20, 2026 SIKA AG CORPORATE PROFILESika is a specialty chemicals company with a globally leading position in the development and production of systems and products for bonding, sealing, damping, reinforcing, and protection in the building sector and industrial manufacturing. Sika has subsidiaries in 102 countries around the world and, in over 400 factories, produces innovative technologies for customers worldwide. In doing so, it plays a crucial role in enabling the transformation of the construction and transportation sector toward greater environmental compatibility. With more than 34,000 employees, the company generated sales of CHF 11.76 billion in 2024. CONTACTDominik SlappnigCorporate Communications &Investor Relations+41 58 436 68 The media release can be downloaded from the following link:Media Release Sign in to access your portfolio
