Latest news with #ThomasHasler
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
22-02-2025
- Business
- Yahoo
Sika AG (SKFOF) (Q4 2024) Earnings Call Highlights: Record Sales and Strategic Growth Amid ...
Net Sales: CHF11.76 billion, a new record in 2024, with 7.4% growth in local currency and 4.7% in Swiss francs. EBITDA: CHF2.27 billion, representing 19.3% of net sales, an increase of 11%. Net Profit: CHF1.25 billion, or 10.6% of net sales, an increase of 17.4%. Operating Free Cash Flow: CHF1.4 billion in 2024. Net Debt to EBITDA Ratio: Decreased to 2.2 times from 2.6 times the previous year. Dividend Proposal: Increase of 9.1% to CHF3.60 per share, up from CHF3.30. Material Margin: Improved to 54.5%, up 90 basis points. EBIT: CHF1.71 billion, an increase of 10.6%. Organic Growth: 1.1% with improving volume trend in the second half of 2024. Acquisition Contribution: 6.3% of local currency growth, primarily from MBCC and bolt-on acquisitions. Return on Capital Employed (ROCE): 14.2%, with acquisition-adjusted ROCE at 22.1%. Warning! GuruFocus has detected 2 Warning Sign with SKFOF. Release Date: February 21, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Sika AG (SKFOF) achieved a record net sales of CHF11.76 billion in 2024, marking a 7.4% growth in local currency. The company reported an all-time high EBITDA margin of 19.3%, with a significant increase in net profit by 17.4%. Sika AG (SKFOF) has successfully integrated MBCC, achieving CHF125 million in synergies, exceeding initial expectations. The company has a strong pipeline for M&A activities, focusing on bolt-on acquisitions to drive growth. Sika AG (SKFOF) continues to outperform its peers, gaining profitable market share and demonstrating resilience in challenging environments. The construction market in China remains challenging, with consumer confidence low and residential sector pressures affecting growth. Sika AG (SKFOF) faces uncertainties in Europe, including potential impacts from US tariffs and geopolitical tensions. The company's growth in Asia Pacific was negative in Q4, with expectations of a slow start in 2025 due to the Chinese New Year. There is a risk of government spending cuts in the US, which could impact infrastructure projects and overall market growth. The company anticipates continued wage inflation pressures, although at a slightly reduced level compared to the previous year. Q: With the US market performing well, particularly in light of tariffs, will Sika focus more on organic investment and M&A in the US? Also, what scale of deals are you considering for M&A this year? A: Thomas Hasler, CEO, stated that the US remains a significant market for Sika, with ongoing investments to upgrade its footprint driven by market potential rather than tariffs. The US is an M&A-friendly environment, and Sika plans to continue pursuing bolt-on acquisitions. While larger deals are not a current focus, the pipeline for small and mid-sized acquisitions is strong. Q: Can you explain the Q4 figures where material margin was lower, but EBITDA margin was higher? Is this pattern expected to continue into 2025? A: Adrian Widmer, CFO, explained that the material margin followed a regular seasonal pattern, with input costs expected to remain flat in the short term. The company has focused on efficiency and synergies, which have improved cost management. While inflationary pressures have eased, Sika continues to drive operational efficiencies. Q: Given the infrastructure boom in the US, is there a risk that government spending might decrease under the current administration? A: Thomas Hasler, CEO, acknowledged potential shifts in government spending priorities but emphasized that infrastructure projects are likely to continue. The construction industry remains optimistic, with a strong pipeline of projects. The reshoring trend is also expected to drive commercial construction growth. Q: What are the main drivers for Sika's 2025 top-line growth guidance of 3% to 6%? A: Adrian Widmer, CFO, noted that the guidance is driven by underlying market conditions, with uncertainties in some regions. M&A is expected to contribute 1% to 2% to growth. The company is confident in its ability to outperform the market by focusing on attractive areas within each market. Q: How is Sika positioned to participate in the reconstruction of Ukraine if peace is achieved? A: Thomas Hasler, CEO, stated that while Sika has a strong team in Ukraine, the impact of peace would be more significant in Western Europe, bringing stability and opening opportunities. The direct impact on Sika's business in Ukraine is expected to be limited. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
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
Reuters
21-02-2025
- Business
- Reuters
Sika reports better-than-expected full-year profit
ZURICH, Feb 21 (Reuters) - Swiss construction chemicals maker Sika (SIKA.S), opens new tab reported better-than-expected full-year core profit on Friday and said it expects 2025 sales to increase by 3%-6% in local currencies. The company, whose results give an insight into the health of the broader construction industry, said its earnings before interest, tax, depreciation and amortisation increased to 2.27 billion Swiss francs ($2.53 billion) in 2024. The 11% increase met the company's outlook of increasing its earnings at a faster rate than sales and beat analysts' forecasts for 2.25 billion francs in a Vara consensus. Net profit rose to 1.25 billion francs, beating forecasts for 1.21 billion francs. Sika, whose products are used to waterproof and strengthen walls, ceilings and floors, had already reported a 7.4% rise in full-year sales to 11.76 billion francs. Sika CEO Thomas Hasler said, "Despite a market environment that remains very challenging, we achieved new record sales and an over-proportional increase in profits." For 2025, Sika said it expects to increase sales between 3% and 6% in local currencies, and achieve an over-proportional increase in EBITDA and also rise in EBITDA margin between 19.5% and 19.8%. ($1 = 0.8980 Swiss francs)
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
