Latest news with #Sika
Reuters
15 hours ago
- Business
- Reuters
Sika first half results hit by dollar weakness
ZURICH July 29 (Reuters) - Sika (SIKA.S), opens new tab gave a more cautious full-year sales guidance on Tuesday after a weaker dollar weighed on the Swiss construction chemical maker's first-half sales and profit. The company, which makes products used to strengthen and waterproof walls and floors, became the latest firm to flag the dollar's impact on results, following Nordic industrial companies earlier this month. The dollar lost value during the first half of the year on concerns about U.S. debt and President Donald Trump's unpredictable trade policies, creating problems for companies such as Sika, which counts the United States as its biggest market. "The weaker U.S. dollar, which lost 10% against the Swiss franc in the second quarter, as well as ongoing uncertainties in global markets, had an impact on the results," Sika said. The company, whose additives were used in projects including the Gordie Howe International Bridge between the United States and Canada, now expects only a "modest" sales increase in local currencies. Previously, Sika had guided for an increase of 3-6%. During the first six months of 2025, Sika suffered a foreign currency effect of minus 4.3%, which turned local currency growth of 1.6% into a 2.7% decline when converted back into Swiss francs, the company's reporting currency. Total sales of 5.68 billion Swiss francs ($7.1 billion) in the six months to June 30 fell short of analyst forecasts of 5.72 billion francs, according to a consensus compiled by Vara. The company's core operating profit (EBITDA) fell to 1.07 billion Swiss francs, missing analysts' forecast of 1.09 billion francs. Its shares were indicated 3.4% lower in premarket activity in Zurich. Sika's results offer insight into the health of the broader construction industry, with its chemical additives being used in infrastructure projects such as the Daimer Basha dam in Pakistan. Its local currency growth of 1.6% was better than the 1.5% decline in the market overall, with Sika saying it expects to continue to grow faster than the market in 2025. "In a challenging market environment, we once again outpaced the industry trend and continued to gain market share," Chief Executive Thomas Hasler said. The company also kept its full-year profit guidance to increase core operating profit faster than local sales growth and achieve a profit margin of 19.5% to 19.8%. ($1 = 0.8026 Swiss francs)
Reuters
18 hours ago
- Business
- Reuters
Swiss chemical maker Sika's half-year sales falls, misses analyst estimate
ZURICH, July 29 (Reuters) - Sika (SIKA.S), opens new tab reported lower half-year sales and profit on Tuesday as the weaker dollar shrunk the construction chemicals maker's earnings when converted back into Swiss francs. The company, which makes products used to strengthen and waterproof walls and floors, said its sales fell 2.7% to 5.68 billion Swiss francs ($7.08 billion) in the six months to June 30. Analysts had forecast 5.72 billion francs, according to a consensus compiled by Vara. ($1 = 0.8026 Swiss francs)
Reuters
18 hours ago
- Business
- Reuters
Swiss chemical maker Sika's half-year sales fall, miss analyst estimate
ZURICH, July 29 (Reuters) - Sika (SIKA.S), opens new tab reported lower half-year sales and profit on Tuesday as the weaker dollar shrunk the construction chemicals maker's earnings when converted back into Swiss francs. The company, which makes products used to strengthen and waterproof walls and floors, said its sales fell 2.7% to 5.68 billion Swiss francs ($7.08 billion) in the six months to June 30. Analysts had forecast 5.72 billion francs, according to a consensus compiled by Vara. The company largely attributed the downturn to translation effects of the weaker dollar, which trimmed the revenue from Sika's biggest market - the United States - when converted into Swiss francs. In local currencies, which takes out the impact of currency fluctuations, Sika's sales grew 1.6%, driven by organic growth and a boost from acquisitions. The company's core operating profit (EBITDA) fell to 1.07 billion Swiss francs, missing analysts' forecast of 1.09 billion francs. Sika's results give insight into the health of the broader construction industry, with its chemical additives being used in infrastructure projects such as the Daimer Basha dam in Pakistan and the Gordie Howe International Bridge between the U.S. and Canada. "Sika is therefore largely unaffected by trade tariffs and can reliably supply its customers, even in challenging market conditions," the company said. For the full 2025 business year, Sika expects a modest sales increase in local currencies and continues to expect an over-proportional increase in EBITDA and an EBITDA margin of between 19.5% and 19.8%. ($1 = 0.8026 Swiss francs)
Yahoo
18 hours ago
- Business
- Yahoo
SIKA ACHIEVES GLOBAL GROWTH OF 1.6% IN LOCAL CURRENCIES AND EXPANDS ITS PROFIT MARGIN
Ad Hoc announcement pursuant to Article 53 of the Listing Rules of the SIX Exchange Regulation SIKA ACHIEVES GLOBAL GROWTH OF 1.6% IN LOCAL CURRENCIES AND EXPANDS ITS PROFIT MARGIN Sales of CHF 5,676.4 million (previous year: CHF 5,834.8 million) in first half of the year 1.6% sales increase in local currencies, with 0.6% attributable to organic growth and 1.0% to acquisition effect Weaker US dollar predominantly responsible for high foreign currency impact of -4.3% Material margin at a consistently high level of 55.1% (previous year: 55.1%) EBITDA margin increased to 18.9% (previous year: 18.7%), supported by strong synergy momentum; raised MBCC synergy targets for 2025 and 2026 by CHF 20 million Targeted investments in future growth: Strategic acquisition of Elmich (Singapore), Cromar (UK), HPS (USA), and Gulf Additive (Qatar) Global production capacity expanded with new factories in Singapore, Xi'an and Suzhou (China), Quito (Ecuador), Ust-Kamenogorsk (Kazakhstan), Belo Horizonte (Brazil), and Agadir (Morocco) Outlook for the 2025 business year: Amid uncertain market development, Sika will continue to grow above the market and is focusing on margin improvement Modest sales increase in local currencies expected for the full year Over-proportional EBITDA increase and EBITDA margin of between 19.5% and 19.8% Strategic medium-term targets for sustainable, profitable growth confirmed for 2028 Despite a challenging economic environment, Sika continued to grow in local currencies in the first half of 2025, achieving a year-over-year increase in its profit margin at EBITDA level. However, the weaker US dollar, which lost 10% against the Swiss franc in the second quarter, as well as ongoing uncertainties on the global markets, had an impact on the results. Thomas Hasler, CEO: 'In a challenging market environment, we once again outpaced the industry trend and continued to gain market share. Our position is especially strong in the project and infrastructure sector, which encompasses forward-looking and high-growth segments. This includes the global expansion of building structures related to artificial intelligence and digital infrastructure. With more than 1,000 data centers built using our technologies to date and a strong project pipeline, Sika has established itself as a preferred partner to technology leaders. Together with our customers around the world, we shape the digital infrastructure of the future.' INCREASE IN EBITDA MARGIN AND RAISED TARGETS FOR MBCC SYNERGIESSika increased its sales in local currencies by 1.6% in the first half of 2025. The foreign currency effect amounted to -4.3%, primarily due to the weakness of the US dollar. As a result, Sika generated sales in Swiss francs of CHF 5.68 billion (previous year: CHF 5.83 billion). In a contracting overall market, Sika managed to achieve positive organic growth of 0.6%. At 55.1%, the material margin was kept at a consistently high level (previous year: 55.1%). The EBITDA margin increased to 18.9% (previous year: 18.7%) against the backdrop of stable input costs, additional efficiency gains, and strong synergy momentum. The MBCC synergy targets were raised by CHF 20 million (new target 2025: CHF 160-180 million, new target 2026: CHF 200-220 million). Operating profit before depreciation and amortization (EBITDA) reached CHF 1,070.4 million in the first half of the year, down slightly compared to the previous year due to strong foreign currency effects. In line with the multi-year average, but lower than the exceptionally high previous year, Sika's operating free cash flow came in at CHF 181.9 million (previous year: CHF 401.3 million). The reduction is due to an increase in net working capital and unfavorable currency development as well as higher investments in future growth. The majority of operating free cash flow is generated in the second half of the year and will be supported by Group-wide net working capital initiatives. INVESTMENTS DRIVING FURTHER GROWTHSika made targeted investments in the first half of 2025 to strengthen its global market position, acquiring four companies and commissioning seven new plants. With more than 400 production sites in 102 countries, the company has an extensive global manufacturing network, producing its cutting-edge technologies locally. Sika is therefore largely unaffected by trade tariffs and can reliably supply its customers, even in challenging market conditions. All regions outperformed their markets. Investments were made around the world – both in bolt-on acquisitions and in the expansion of production capacities to support future growth. One strategically important step was the minority stake in Giatec™ Scientific Inc., a Canada-based global leader in digital concrete technologies. Specializing in smart testing methods and AI-powered solutions, Giatec develops innovative sensors, software solutions, and data analytics tools to optimize concrete quality, durability, and sustainability – from production and transportation to placement at the construction site plus the later monitoring of the structures. GLOBAL MARKET SHARE GAINS AND SLIGHT RECOVERY IN EMEAThe first half of the year showed a slight recovery in the construction markets of the largest region, EMEA (Europe, Middle East, Africa), with growth of 3.1% in local currencies in the second quarter (first quarter: 0.7%). For the whole reporting period, sales growth in local currencies amounted to 1.9% (previous year: 13.5%). Sika recorded significant double-digit sales increases in the Middle East and Africa. Construction markets are also showing the first signs of a recovery in Eastern Europe. In Germany, Sika's strong sales organization is perfectly positioned to benefit from the government's recently approved infrastructure program. This package provides for EUR 500 billion to be invested in the modernization and expansion of the national infrastructure over a ten-year period. Sales in the Americas region increased by 3.5% in local currencies (previous year: 15.1%). After a good start to the fiscal year, the mixed signals in US trade policy unsettled many market participants, which also somewhat slowed the market momentum. While this caused Sika's growth in the USA and Mexico to weaken, the positive growth momentum of the previous year continued in Latin America. Investments in data centers and government-subsidized infrastructure and commercial construction projects supported the development of the US construction market. Thanks to Sika's local presence – with nearly 100% of its products and solutions sold in the US also manufactured in-country – and its market leadership in the renovation segment, Sika succeeded in outperforming the overall market in this challenging environment. Local currency sales in the Asia/Pacific region declined slightly by -1.7% in the first half of the year (previous year: 8.0%). This result is mainly attributable to the challenging, deflationary market environment in the Chinese construction sector, for which Sika is focusing on protecting its margins and driving efficiencies. Excluding the negative development in China, Sika would have achieved positive low-single-digit growth in the region. Market development for Sika was particularly dynamic in India and Southeast Asia as well as in the Automotive & Industry segment, where the company was able to further expand the share of its technologies in vehicles from both local and international manufacturers. OUTLOOK Amid uncertain market development, arising in particular as a result of ongoing trade conflicts, Sika will continue to grow above the market and focus on margin improvement. For the 2025 business year, Sika expects a modest sales increase in local currencies. The company continues to expect an over-proportional increase in EBITDA and an EBITDA margin of between 19.5% and 19.8%. Sika is confirming its strategic medium-term targets for 2028 for sustainable, profitable growth. KEY FIGURES FIRST HALF OF 2025 in CHF million 1/1/2024 – 6/30/2024 1/1/2025 – 6/30/2025 Change in % Net sales 5,834.8 5,676.4 -2.7 Gross result 3,217.6 3,129.1 -2.8 Operating profit before depreciation (EBITDA) 1,092.9 1,070.4 -2.1 Operating profit (EBIT) 822.2 798.1 -2.9 Profit after taxes 577.1 554.4 -3.9 Basic earnings per share (in CHF) 3.59 3.45 -3.9 Diluted earnings per share (in CHF) 3.59 3.45 -3.9 Operating free cash flow 401.3 181.9 -54.7 Balance sheet total1 15,977.2 15,393.3 Shareholders' equity1 7,046.8 6,186.1 Equity ratio in %1,2 44.1 40.2 Return on capital employed (ROCE)in %3 13.4 13.5 1 As of December 31, 2024 / June 30, 2025. 2 Shareholders' equity divided by balance sheet total. 3 Capital employed = current assets, PPE, intangible assets less cash and cash equivalents, current securities, current liabilities (excluding bank loans and bonds). NET SALES BY REGION in CHF million 1/1/2024 – 6/30/2024 1/1/2025 – 6/30/2025 Change compared to previous year(+/- in %) In Swiss francs In local currencies Currencyimpact Acquisitioneffect By region EMEA 2,565.3 2,527.7 -1.5 1.9 -3.4 0.5 Americas 2,045.1 1,984.4 -3.0 3.5 -6.5 2.2 Asia/Pacific 1,224.4 1,164.3 -4.9 -1.7 -3.2 0.4 Net sales 5,834.8 5,676.4 -2.7 1.6 -4.3 1.0 Products for construction industry 4,949.6 4,821.7 -2.6 1.9 -4.5 1.2 Products for industrial manufacturing 885.2 854.7 -3.4 0.3 -3.7 0.0 Webcast on July 29, 2025, at 3:00 p.m. (CEST) A webcast will be held today in connection with the publication of the half-year results. Click this link to join the webcast with Thomas Hasler (CEO), Adrian Widmer (CFO), Dominik Slappnig (Head Corporate Communications & IR), and Christine Kukan (Head Investor Relations). A recording of the webcast will be made available on the Sika website in the 'Investors' area. FINANCIAL CALENDAR Result first nine months 2025 Friday, October 24, 2025 Net sales 2025 Tuesday, January 13, 2026 Media conference / analyst presentationon full-year results 2025 Friday, February 20, 2026 58th Annual General Meeting Tuesday, March 24, 2026 Net sales first quarter 2026 Tuesday, April 14, 2026 Half-year report 2026 Tuesday, July 28, 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 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
Yahoo
19 hours ago
- Business
- Yahoo
SIKA ACHIEVES GLOBAL GROWTH OF 1.6% IN LOCAL CURRENCIES AND EXPANDS ITS PROFIT MARGIN
Ad Hoc announcement pursuant to Article 53 of the Listing Rules of the SIX Exchange Regulation SIKA ACHIEVES GLOBAL GROWTH OF 1.6% IN LOCAL CURRENCIES AND EXPANDS ITS PROFIT MARGIN Sales of CHF 5,676.4 million (previous year: CHF 5,834.8 million) in first half of the year 1.6% sales increase in local currencies, with 0.6% attributable to organic growth and 1.0% to acquisition effect Weaker US dollar predominantly responsible for high foreign currency impact of -4.3% Material margin at a consistently high level of 55.1% (previous year: 55.1%) EBITDA margin increased to 18.9% (previous year: 18.7%), supported by strong synergy momentum; raised MBCC synergy targets for 2025 and 2026 by CHF 20 million Targeted investments in future growth: Strategic acquisition of Elmich (Singapore), Cromar (UK), HPS (USA), and Gulf Additive (Qatar) Global production capacity expanded with new factories in Singapore, Xi'an and Suzhou (China), Quito (Ecuador), Ust-Kamenogorsk (Kazakhstan), Belo Horizonte (Brazil), and Agadir (Morocco) Outlook for the 2025 business year: Amid uncertain market development, Sika will continue to grow above the market and is focusing on margin improvement Modest sales increase in local currencies expected for the full year Over-proportional EBITDA increase and EBITDA margin of between 19.5% and 19.8% Strategic medium-term targets for sustainable, profitable growth confirmed for 2028 Despite a challenging economic environment, Sika continued to grow in local currencies in the first half of 2025, achieving a year-over-year increase in its profit margin at EBITDA level. However, the weaker US dollar, which lost 10% against the Swiss franc in the second quarter, as well as ongoing uncertainties on the global markets, had an impact on the results. Thomas Hasler, CEO: 'In a challenging market environment, we once again outpaced the industry trend and continued to gain market share. Our position is especially strong in the project and infrastructure sector, which encompasses forward-looking and high-growth segments. This includes the global expansion of building structures related to artificial intelligence and digital infrastructure. With more than 1,000 data centers built using our technologies to date and a strong project pipeline, Sika has established itself as a preferred partner to technology leaders. Together with our customers around the world, we shape the digital infrastructure of the future.' INCREASE IN EBITDA MARGIN AND RAISED TARGETS FOR MBCC SYNERGIESSika increased its sales in local currencies by 1.6% in the first half of 2025. The foreign currency effect amounted to -4.3%, primarily due to the weakness of the US dollar. As a result, Sika generated sales in Swiss francs of CHF 5.68 billion (previous year: CHF 5.83 billion). In a contracting overall market, Sika managed to achieve positive organic growth of 0.6%. At 55.1%, the material margin was kept at a consistently high level (previous year: 55.1%). The EBITDA margin increased to 18.9% (previous year: 18.7%) against the backdrop of stable input costs, additional efficiency gains, and strong synergy momentum. The MBCC synergy targets were raised by CHF 20 million (new target 2025: CHF 160-180 million, new target 2026: CHF 200-220 million). Operating profit before depreciation and amortization (EBITDA) reached CHF 1,070.4 million in the first half of the year, down slightly compared to the previous year due to strong foreign currency effects. In line with the multi-year average, but lower than the exceptionally high previous year, Sika's operating free cash flow came in at CHF 181.9 million (previous year: CHF 401.3 million). The reduction is due to an increase in net working capital and unfavorable currency development as well as higher investments in future growth. The majority of operating free cash flow is generated in the second half of the year and will be supported by Group-wide net working capital initiatives. INVESTMENTS DRIVING FURTHER GROWTHSika made targeted investments in the first half of 2025 to strengthen its global market position, acquiring four companies and commissioning seven new plants. With more than 400 production sites in 102 countries, the company has an extensive global manufacturing network, producing its cutting-edge technologies locally. Sika is therefore largely unaffected by trade tariffs and can reliably supply its customers, even in challenging market conditions. All regions outperformed their markets. Investments were made around the world – both in bolt-on acquisitions and in the expansion of production capacities to support future growth. One strategically important step was the minority stake in Giatec™ Scientific Inc., a Canada-based global leader in digital concrete technologies. Specializing in smart testing methods and AI-powered solutions, Giatec develops innovative sensors, software solutions, and data analytics tools to optimize concrete quality, durability, and sustainability – from production and transportation to placement at the construction site plus the later monitoring of the structures. GLOBAL MARKET SHARE GAINS AND SLIGHT RECOVERY IN EMEAThe first half of the year showed a slight recovery in the construction markets of the largest region, EMEA (Europe, Middle East, Africa), with growth of 3.1% in local currencies in the second quarter (first quarter: 0.7%). For the whole reporting period, sales growth in local currencies amounted to 1.9% (previous year: 13.5%). Sika recorded significant double-digit sales increases in the Middle East and Africa. Construction markets are also showing the first signs of a recovery in Eastern Europe. In Germany, Sika's strong sales organization is perfectly positioned to benefit from the government's recently approved infrastructure program. This package provides for EUR 500 billion to be invested in the modernization and expansion of the national infrastructure over a ten-year period. Sales in the Americas region increased by 3.5% in local currencies (previous year: 15.1%). After a good start to the fiscal year, the mixed signals in US trade policy unsettled many market participants, which also somewhat slowed the market momentum. While this caused Sika's growth in the USA and Mexico to weaken, the positive growth momentum of the previous year continued in Latin America. Investments in data centers and government-subsidized infrastructure and commercial construction projects supported the development of the US construction market. Thanks to Sika's local presence – with nearly 100% of its products and solutions sold in the US also manufactured in-country – and its market leadership in the renovation segment, Sika succeeded in outperforming the overall market in this challenging environment. Local currency sales in the Asia/Pacific region declined slightly by -1.7% in the first half of the year (previous year: 8.0%). This result is mainly attributable to the challenging, deflationary market environment in the Chinese construction sector, for which Sika is focusing on protecting its margins and driving efficiencies. Excluding the negative development in China, Sika would have achieved positive low-single-digit growth in the region. Market development for Sika was particularly dynamic in India and Southeast Asia as well as in the Automotive & Industry segment, where the company was able to further expand the share of its technologies in vehicles from both local and international manufacturers. OUTLOOK Amid uncertain market development, arising in particular as a result of ongoing trade conflicts, Sika will continue to grow above the market and focus on margin improvement. For the 2025 business year, Sika expects a modest sales increase in local currencies. The company continues to expect an over-proportional increase in EBITDA and an EBITDA margin of between 19.5% and 19.8%. Sika is confirming its strategic medium-term targets for 2028 for sustainable, profitable growth. KEY FIGURES FIRST HALF OF 2025 in CHF million 1/1/2024 – 6/30/2024 1/1/2025 – 6/30/2025 Change in % Net sales 5,834.8 5,676.4 -2.7 Gross result 3,217.6 3,129.1 -2.8 Operating profit before depreciation (EBITDA) 1,092.9 1,070.4 -2.1 Operating profit (EBIT) 822.2 798.1 -2.9 Profit after taxes 577.1 554.4 -3.9 Basic earnings per share (in CHF) 3.59 3.45 -3.9 Diluted earnings per share (in CHF) 3.59 3.45 -3.9 Operating free cash flow 401.3 181.9 -54.7 Balance sheet total1 15,977.2 15,393.3 Shareholders' equity1 7,046.8 6,186.1 Equity ratio in %1,2 44.1 40.2 Return on capital employed (ROCE)in %3 13.4 13.5 1 As of December 31, 2024 / June 30, 2025. 2 Shareholders' equity divided by balance sheet total. 3 Capital employed = current assets, PPE, intangible assets less cash and cash equivalents, current securities, current liabilities (excluding bank loans and bonds). NET SALES BY REGION in CHF million 1/1/2024 – 6/30/2024 1/1/2025 – 6/30/2025 Change compared to previous year(+/- in %) In Swiss francs In local currencies Currencyimpact Acquisitioneffect By region EMEA 2,565.3 2,527.7 -1.5 1.9 -3.4 0.5 Americas 2,045.1 1,984.4 -3.0 3.5 -6.5 2.2 Asia/Pacific 1,224.4 1,164.3 -4.9 -1.7 -3.2 0.4 Net sales 5,834.8 5,676.4 -2.7 1.6 -4.3 1.0 Products for construction industry 4,949.6 4,821.7 -2.6 1.9 -4.5 1.2 Products for industrial manufacturing 885.2 854.7 -3.4 0.3 -3.7 0.0 Webcast on July 29, 2025, at 3:00 p.m. (CEST) A webcast will be held today in connection with the publication of the half-year results. Click this link to join the webcast with Thomas Hasler (CEO), Adrian Widmer (CFO), Dominik Slappnig (Head Corporate Communications & IR), and Christine Kukan (Head Investor Relations). A recording of the webcast will be made available on the Sika website in the 'Investors' area. FINANCIAL CALENDAR Result first nine months 2025 Friday, October 24, 2025 Net sales 2025 Tuesday, January 13, 2026 Media conference / analyst presentationon full-year results 2025 Friday, February 20, 2026 58th Annual General Meeting Tuesday, March 24, 2026 Net sales first quarter 2026 Tuesday, April 14, 2026 Half-year report 2026 Tuesday, July 28, 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 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
