Construction chemicals Sika achieves highest annual sales ever, also thanks to acquisitions
Sika generated record-high sales in 2024, mainly thanks to a major acquisition. Nevertheless, the Central Swiss company is also growing on its own. Sika expects operating profit, which has not yet been communicated, to rise sharply.
09.01.2025, 07:21
09.01.2025, 07:53
SDA
In 2024, the construction chemicals and adhesives manufacturer increased sales expressed in local currencies by 7.4 percent to 11.76 billion Swiss francs, as the company announced on Thursday. This was primarily due to the acquisition of German competitor MBCC in May 2023: Sika puts the acquisition effect at 6.3 percent.
Sika thus grew by 1.1 percent under its own steam. And the momentum is positive: organic growth amounted to 1.7 percent in the second half of the year. The company also succeeded in expanding its market share in the last quarter of the year.
The downer was the currency effect of minus 2.7 percent: calculated in Swiss francs, Sika increased sales by only 4.7 percent. However, as Sika emphasized in the communiqué, this was in the face of persistently extremely challenging market conditions.
Chinese construction market clearly negative
In the largest Group region EMEA (Europe, Middle East, Africa), Sika increased sales in local currencies by 7.3 percent. The market environment in Europe was "very challenging", the company emphasized. Contrary to the trend, however, the company held its ground in a negative market in Germany, for example, and achieved slight growth in Italy and Spain.
However, the European automotive and industrial business showed a downward trend. The main reason for this was the falling demand for new vehicles.
Sales in the Americas region grew by 11.2 percent. Growth in the USA in particular was "strong" thanks to government-funded infrastructure projects. Business in Latin America developed "solidly".
In the Asia/Pacific region, Sika grew by only 2.4 percent. This is because the Chinese construction market is still clearly negative despite government support measures, which is reflected at Sika primarily in declining project business. In Southeast Asia, however, high single-digit organic growth was achieved.
Further growth ahead
At the same time, Sika confirmed its profit targets for 2024, with operating profit EBITDA expected to grow even faster than sales.
Sika also confirmed the medium-term targets of "Strategy 2028". According to this strategy, sales are to grow by 6 to 9 percent annually and the operating profit margin before depreciation and amortization (EBITDA) is to rise to 20 to 23 percent (2023: 18.2 percent).
Sika will present its full annual financial statements on February 21.
