Sika successfully expanded its business activities in the first half of 2024, achieving record results despite challenging market conditions. Strong growth rates and targeted expansion of market share resulted in new record sales of CHF 5,834.8 million, up from CHF 5,345.5 million in the previous year. This represents a 12.8% increase in local currencies, while sales growth in Swiss francs reached 9.2%, including a negative currency effect of -3.6%, which subsided in the second quarter. At the profitability level, Sika substantially expanded its EBITDA margin to 18.7%, compared to 16.5% the previous year. The integration of the MBCC acquisition is progressing well and is contributing significantly to these strong half-year results.

Marked Increase in EBITDA

Sika posted a material margin of 55.1% in the first half of the year, up from 52.7% the previous year. This improvement, along with efficiency increases and synergies from the MBCC acquisition, led to a marked increase in the EBITDA margin to 18.7%, 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. With a clear focus on cash generation, Sika achieved an all-time high for its operating free cash flow of CHF 401.3 million, up from CHF 322.5 million the previous year.

Growth and Market Share Gains Across All Regions

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

• EMEA Region (Europe, Middle East, and Africa): The EMEA region recorded a sales increase in local currencies of 13.5%, up from 4.1% the previous year. Factors such as price stability, robust employment figures, stabilized purchasing power due to recovering real wages, and lower trending interest rates point towards an economic recovery in the region. The positive trend towards more infrastructure and commercial construction projects continued, and Sika also achieved growth in the distribution business. Germany, one of the most important markets in construction, showed initial growth momentum, while the automotive and industry business had a subdued first half due to declining production figures for new vehicles.

• Americas Region: The Americas region achieved a 15.1% increase in sales in local currencies, up from 12.0% the previous year. The USA posted continuous economic growth, supported by state-funded infrastructure projects and the reshoring of production facilities. Latin America also contributed to the positive trend with modest growth. In the automotive business, Sika achieved a slight increase in sales, increasing its content per car compared to the previous year. Sika successfully acquired Kwik Bond, a manufacturer of polymer systems for the refurbishment of concrete infrastructures in the USA, expanding its portfolio of high-value-added systems for concrete structure refurbishment. Additionally, Sika commissioned a state-of-the-art plant in Lima, Peru, to produce synthetic macro fibers for concrete components, strengthening its position as a leading supplier to the mining industry and a strong partner for infrastructure projects.

• Asia/Pacific Region: The Asia/Pacific region increased sales by 8.0%, down from 9.9% the previous year. In China, Sika achieved moderate growth in its distribution business despite declining markets, while project business experienced a decline. Southeast Asia gained growth momentum 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. The company opened a new plant in Liaoning, Northeast China, to produce mortars, tile adhesives, and waterproofing solutions, meeting future market demand and optimizing logistics operations.

Outlook for 2024

Sika is confident in its ability to continue implementing its strategy of sustainable and profitable growth in a recovering economic environment in 2024. The company's 34,000 dedicated employees worldwide, who strongly identify with its objectives, play a key role in supporting Sika's position as an innovative leader in its core markets. Sika aims to drive change in the construction and industry sectors towards automation, digitalization, and sustainability. Construction professionals, building owners, industrial companies, and other stakeholders globally rely on Sika’s innovative solutions, their contribution to decarbonization, and ease of use.

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

Source: Sika