Record Results for Sales, Cash Flow, and adjusted EBIT

Sika can look back on a historic year. In 2023, not only did the company set a course for a successful future with its new strategy “Beyond the Expected”, it also closed the largest acquisition in the company’s history. Thanks to the acquisition of MBCC Group, Sika is moving to the next strategic growth level and positioning itself ideally for the future. Along with additional annual sales of CHF 2.1 billion and countless new innovations, 6,000 new employees have joined the company. Sika and MBCC complement one another extremely well. What emerges from the combination of the two businesses is an innovation leader and sustainability champion in the construction chemicals market, providing benefits to all stakeholders.

Overall, Sika maintained its profitable growth trajectory in 2023 even in a challenging economic environment, generating record sales despite high rates of inflation, rising interest rates, and strong currency depreciation. The total sales figure amounted to CHF 11,238.6 million, a rise of 7.1% in CHF. Almost all currencies lost considerable value against the Swiss franc, which led to a negative currency effect of –7.4% for the year as a whole. In local currencies, the result was a double-digit growth of 14.5%. 

All regions performed well and contributed to Sika’s further growth and the systematic expansion of market share. This enabled Sika to deliver organic growth in 2023, in contrast to a negatively developing market. 

The EMEA region (Europe, Middle East, Africa) reported a sales increase in local currencies of 14.8% (previous year: 8.3%). The countries of the Middle East and Africa recorded strong growth rates, while France, Spain, and Portugal likewise developed positively. Among other things, Sika benefited from economic subsidy programs and from investments aimed at saving energy in buildings as well as the booming area of e-mobility. Once again, business activity was subdued in Germany, Austria, and Northern Europe. The positive trend toward more infrastructure and commercial construction projects in the EMEA region continued in the fourth quarter. Distribution business was likewise up slightly on 2022.

In local currency terms, the Americas region achieved a 14.9% increase in sales (previous year: 27.5%). Rising rates of inflation, high interest rates, and an increasing shortage of specialized labor weighed on construction activity in many markets, with the corresponding negative impact on the wider construction economy. The growth in the region in 2023 is attributable to the MBCC acquisition. The US construction economy benefited generally from infrastructure projects, supported by state subsidy programs and projects in the context of reshoring production facilities to the USA. Latin America also contributed to the rise in sales with solid growth.

Sales in the Asia/Pacific region rose by 15.1% in local currencies (previous year: 14.8%). In China, Sika recorded double-digit growth in distribution business, while project business declined slightly. Sales in Japan increased, and double-digit growth rates were achieved in the growth market of India. Business in Indonesia, Thailand, and the Philippines was characterized by increasing positive momentum.

In the Global Business segment, Sika achieved growth in local currencies of 10.0% (previous year: 22.2%). This increase is primarily due to robust demand for new vehicles, particularly electric vehicles, along with the normalization of supply chains. The US strike in the auto industry had a negative effect in the final quarter of last year, as did the decline in business not related to the automotive industry in this segment. Sika received a record number of new orders in the automotive business in 2023. The acquired supply orders will generate further sales growth in the medium term and ensure that the automotive business continues to generate a strong performance.

In the fall Sika unveiled the new Strategy 2028 “Beyond the Expected”, which builds on the success of the previous growth model. The roadmap envisages leveraging Sika’s leading market position and innovative strength, setting the course towards even stronger company performance over the coming years. The annual growth target in local currencies has been lifted to 6–9%, with the profitability target increased to an EBITDA margin of 20–23%. The new growth strategy is based on the four pillars of Market Penetration, Innovation & Sustainability, Acquisitions, and People & Culture, and represents a balanced combination of financial and non-financial objectives.

In view of the good results, at the Annual General Meeting to be held on March 26, 2024, the Board of Directors will be proposing to shareholders that the gross dividend per share be increased from CHF 3.20 to CHF 3.30 (+3.1%). Half of the dividend is to be paid from the capital contribution reserves. In absolute figures, Sika has been increasing its dividend year on year for the past 12 consecutive years. Furthermore the Board of Directors proposes the election of Thomas Aebischer as new member of the Board. 

For the current fiscal year, Sika is convinced that it will be able to successfully continue its strategy built on sustainable and earnings-oriented growth even in a challenging economic environment. With its innovative technologies, Sika is the partner of choice for many customers in the construction and industrial sectors. These sectors are being heavily shaped by the megatrend of sustainability, as well as by increasing automation, digitalization, and the rising demand for easy-to-apply products. 

For the 2024 fiscal year, Sika is expecting sales growth in local currencies of 6–9% and again an over-proportional increase in EBITDA.

¹ Divestment of European industrial coatings business.

² Cost related to the acquisition of MBCC.

* undiluted