Further expansion of market share - Sika posts record results in first half of the year

Marked increase in EBITDA

Sika posted a material margin of 55.1% in the first half of the year (previous year: 52.7%). This improvement, together with efficiency increases and synergies from the MBCC acquisition, has led to a marked increase in the EBITDA margin of 18.7% (previous year: 16.5%), despite inflationary cost dynamics in some areas. Operating profit before depreciation and amortization (EBITDA) reached a new record high of CHF 1,092.9 million in the first half of the year. 

With a clear focus on cash generation, Sika achieved an all-time high for its operating free cash flow of CHF 401.3 million (previous year: CHF 322.5 million).

Growth and market share gains in all regions

All regions successfully stood their ground and contributed to Sika’s growth and the expansion of business activities. The company continued to grow organically in the first half of the year, further increasing market share.

In the first half of 2024, the EMEA region (Europe, Middle East, and Africa) recorded an increase in sales in local currencies of 13.5% (previous year: 4.1%). An increase in price stability, robust employment figures, stabilized purchasing power due to the recovery in real wages, and lower trending interest rates are pointing towards an economic recovery in the region. The positive trend towards more infrastructure and commercial construction projects continued in the first half of the current fiscal year. Sika also achieved growth in the distribution business. At local level, the countries in the Middle East, Africa, and Eastern Europe generated further growth. In the EMEA region, Germany, one of the most important markets in construction, showed initial growth momentum. By contrast, the automotive and industry business recorded a subdued first half of the year owing to declining production figures for new vehicles.

The Americas region achieved a 15.1% increase in sales in local currencies in the reporting period (previous year: 12.0%). The USA in particular has been posting continuous economic growth this year. Factors supporting the positive trend were state-funded infrastructure projects and projects realized in the context of the reshoring of production facilities to the USA. Latin America also contributed to the positive trend in the region with modest growth. In the automotive business, Sika managed to achieve a slight increase in sales. Compared with the reference period in the previous year, the company further increased its content per car. Sika successfully acquired Kwik Bond, a manufacturer of polymer systems for the refurbishment of concrete infrastructures in the USA. For over 30 years, Kwik Bond has specialized in the refurbishment of bridge decks. With this acquisition, Sika has expanded its portfolio of high-value-added systems for the refurbishment of concrete structures. In Lima, Peru, Sika commissioned a state-of-the-art plant to produce synthetic macro fibers for concrete components. With this innovative technology, the company is further strengthening its position as a leading supplier to the mining industry and strong partner for infrastructure projects.

The Asia/Pacific region increased sales by 8.0% (previous year: 9.9%). In China, Sika achieved moderate growth in its distribution business despite declining markets, while project business experienced a clear decline. Southeast Asia, by contrast, has gained growth momentum over the course of the year with high single-digit growth. In the automotive sector, Sika expanded its content per car with local and international automotive manufacturers in China and India. In the first half of the year, the company opened a new plant in Liaoning, the largest province in Northeast China. The ultra-efficient factory, which produces mortars, tile adhesives, and waterproofing solutions, will allow Sika to meet future growing market demand. At the same time, it will shorten distances and optimize logistics operations.

Outlook for 2024

Sika is confident that it will be able to successfully continue to implement its strategy built on sustainable and profitable growth in a recovering economic environment in 2024. Its around 34,000 dedicated employees worldwide, who strongly identify with the company objectives, are making an important contribution. The employees play a key role in supporting Sika, as an innovative leader in its core markets, to drive change in the construction and industry sectors towards automation, digitalization, and sustainability. Construction professionals, building owners, industrial companies, and other stakeholders around the globe rely on the first-class quality of Sika’s innovative solutions, their contribution to decarbonization, and ease of use.

For 2024, Sika expects sales growth in local currencies of 6-9% as well as an over-proportional increase in EBITDA.

¹ As of December 31, 2023/June 30, 2024.
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).