Growth and Significant Rise in Net Profit

ON EXPANSION TRACK IN ALL REGIONS

All Group regions contributed to the 18.1% growth in sales. The currency effect had a negative impact of 7.5%. Adjusted to Swiss francs, sales were 10.6% higher.

Sales in the region EMEA (Europe, Middle East, Africa) saw a 21.7% increase in the first half of the year. Brighter prospects for the construction sector, significant growth in Germany and the Middle East and the moderate recovery witnessed by the Southern European countries impacted positively on the region’s performance. The acquisitions made in 2013, product launches and the mild winter were other contributory factors behind the strong rise in sales.

North America generated a 6.5% increase in sales. Projects delayed at the beginning of the year due to the harsh winter are now under construction and investments are being made in infrastructure projects and commercial buildings.

The region Asia/Pacific grew by 18.1%, building on the strong growth seen over recent years. Notably China, Japan, Indonesia and Australia are showing double-digit growth. Growth is based on gains made in market share by moving into new markets, on the launch of new products and on the newly opened plants.

At 16.8%, sales growth remained consistently high in Latin America. In a challenging business environment, Sika succeeded in achieving double-digit growth in most countries and increasing market share further. Substantial devaluations of a number of local currencies led to high exchange rate losses.

SIGNIFICANT INCREASE IN NET PROFIT

At 53.3%, the gross result was held stable in the first half of the year (first half of 2013: 53.2%). Substantial growth in sales, a stable gross result and selective efficiency enhancements led to an above-average increase in profitability. Operating profit came to CHF 266.4 million, representing an increase of 21.0% (first half of 2013: CHF 220.2 million). Net profit after taxes grew by 25.7% to CHF 177.6 million (first half of 2013: CHF 141.3 million).

OUTLOOK

Through further investments in growth markets, the launch of new products, and the recently acquired companies, Sika will continue its growth strategy in the current year. Owing to the excellent performance in the first half, sales growth projections for full-year 2014 have been raised from 6 – 8% to 9 – 11%. Strong currency movements and the framework conditions prevailing in some markets are still a challenge in the present financial year. Sika is expecting stable margins for the year as a whole.

¹ As of December 31, 2013/June 30, 2014.
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 bond).

 

¹ including acquisitions