Sika News 2019

Sika is starting the operations of a new mortar plant at its existing site in Addis Ababa, Ethiopia, thus expanding its portfolio of locally manufactured products. After building a production facility for concrete admixtures in 2016, this is a further step in extending the presence in the promising Ethiopian construction market.

▪ Sales growth of 15.1% in local currencies to over CHF 6 billion (+12.9% in CHF)
▪ Growth in all regions
▪ Organic growth of 4.1%
▪ Strong operating profit growth (EBITDA +18.2%, EBIT +10.6%)
▪ Strong cash-flow generation, operating free cash-flow of CHF 555.1 million
▪ Boost to growth thanks to acquisition of Parex as well as of Crevo-Hengxin, King Packaged Materials and Belineco
▪ Opening of five new factories
▪ Outlook: sales of over CHF 8 billion and double-digit EBIT growth for 2019
▪ New Strategy 2023 will ensure Sika’s success in the upcoming years

At the 2019 Sika Capital Markets Day being held in Zurich today, CEO Paul Schuler presents the new Strategy 2023, which builds on the current successful growth model. This will set the course for an even stronger performance. In addition to a rise in the long-term EBIT target to 15-18%, the main new elements of Strategy 2023 are the introduction of a new Target Market, “Building Finishing”, a focus on operational efficiency, and a targeted, Group-wide emphasis on environmentally friendly products and sustainability.

Sika has agreed to acquire Crevo-Hengxin, a Chinese manufacturer of silicone sealants and adhesives used in both industry and construction applications. With this takeover, Sika is expanding its Target Markets Industry and Sealing & Bonding presence in China and the Asia Pacific region, and is gaining additional silicone technology plus a production footprint. Crevo- Hengxin generates sales of CHF 50 million, with a workforce of 140 employees.

Sika is further expanding its presence in West Africa and starting operations in a new facility for mortars in Cameroon. Following the foundation of the national subsidiary in 2016 and the opening of a concrete admixture plant in 2017, the company is now investing in a new mortar manufacturing facility. In total, Sika has 22 factories on the high-growth African continent. The current business year has already seen investments in new facilities in Egypt and Senegal.

▪ Sales growth of 9.6% in local currencies to CHF 3,732.4 million (+7.6% in CHF)
▪ Growth in all regions
▪ Higher gross result – EBIT increase of 8.3%
▪ Conclusion of Parex acquisition provides boost to growth, takeover of King Packaged Materials in Canada and Belineco in Belarus
▪ Opening of three new factories
▪ Outlook: sales of over CHF 8 billion and double-digit EBIT growth for 2019

Sika is expanding its production capacities in Southeast Europe by bringing a further mortar facility as well as a warehouse for raw materials and end-products on stream at its Simanovci site in Serbia. The plant, which is located near Belgrade, has been continuously expanded in recent years to keep pace with the dynamic development experienced by the region’s construction sector and strong Sika growth.

Sika is partnering with the renowned architects firm, Bjarke Ingels Group (BIG), to showcase its latest 3D concrete printing capabilities at the “Formgiving” Exhibition in Copenhagen, Denmark.

Sika is starting operations at a plant in Doha, Qatar, for the production of concrete admixtures. The country on the east coast of the Arabian peninsula is an attractive market thanks to large-scale infrastructure investment and a number of mega projects, both ongoing and planned.

Sika has completed the acquisition of Parex on May 23, 2019. The deal was announced on January 8, 2019. With annual sales of CHF 1.2 billion, Parex is a leading mortar manufacturer with an impressive track record of profitable growth and attractive margins. Sika and Parex are two strong companies that are highly complementary in product offering and channel penetration. With this acquisition, Sika will expand its product portfolio for the building finishing market, further strengthening its world leader position in construction chemicals, and reaching sales in excess of CHF 8 billion for 2019.