Ad Hoc Announcement Pursuant to Article 53 of the SIX Exchange Regulation Listing Rules
RECORD RESULTS FOR SALES AND PROFIT – EBIT MARGIN INCREASED TO 15.0%
Results 2021
- Sales of
CHF 9,252.3 million (+17.5%), sales increase in local currencies of +17.1% - EBITDA increased to
CHF 1,758.0 million (+17.4%) - Operating profit (EBIT) increased to
CHF 1,391.4 million (+23.1%), resulting in an EBIT margin of 15.0% (previous year: 14.4%) - Net profit up to
CHF 1,048.5 million (+27.1%) - Reduction of CO2eq emissions by -10.1% to 17.6 kg per ton sold
- Proposal for dividend increase of 16.0% to
CHF 2.90 per share (previous year:CHF 2.50 )
Outlook for 2022 fiscal year
- Sales increase in local currencies by well over 10%, surpassing
CHF 10 billion for the first time - Over-proportional increase in EBIT
- Closing of MBCC acquisition remains targeted for the second half of 2022
- Confirmation of 2023 strategic targets for sustainable, profitable growth
- New sustainability targets to be presented at Capital Markets Day on
September 30, 2022
Sika performed well in a challenging environment in 2021, once again demonstrating the strengths of its business model. Despite the ongoing COVID-19 pandemic and bottlenecks in the procurement of raw materials, sales rose significantly by 17.5% to a record
RECORD FIGURES FOR SALES AND PROFIT
Not only did Sika post record sales but profit also reached an all-time high despite an extremely steep increase in raw material costs. Thanks to price increases, rigorous cost management and economies of scale, efficiency gains, and synergies from acquisitions, Sika was not just able to offset the high raw material costs at EBIT level – it also managed to substantially improve EBIT. This came in at
SIKA AS AN ENABLER OF SUSTAINABLE CONSTRUCTION AND ENVIRONMENTALLY-FRIENDLY MOBILITY
Climate change is presenting society with major challenges. In its growth strategy, Sika has committed to reducing its CO2eq emissions (scope 1 and 2) by 12% by 2023. In 2021 it was once again able to clearly surpass this target, cutting its CO2eq emissions per ton sold by -10.1% to 17.6 kg (previous year: reduction of -25.9%). At the Capital Markets Day scheduled for
Sika sees itself as an enabler: a supplier of innovative products that enable its customers to lower their CO2 emissions, build in a way that conserves resources and make structures safer. Thanks to Sika solutions, they are able to enhance many aspects of their products and processes. These range from admixtures for low-emission concrete, to facade systems for energy-efficient buildings, and adhesives for environmentally-friendly vehicles.
SIKA WAS ABLE TO GROW IN ALL REGIONS
In general, the economy in 2021 recovered more quickly than expected from the impact of the pandemic. The fast-growing construction sector played a considerable part in this. Sika was able to grow in all regions in 2021. Moreover, distribution business posted significant gains in all regions.
The EMEA region (
The
Sales in local currencies in the
In the Global Business segment, Sika posted growth in local currencies of 4.3% (previous year: –11.4%), thus outperforming the market. The automotive industry experienced major bottlenecks in the electronic parts supply chain. Whereas forecasts at the beginning of the year predicted a strong recovery in the volume of new vehicles manufactured compared with the previous year, particularly in the second half there was a sharp decline owing to the lack of availability of semiconductors. Nevertheless, Sika anticipates continued strong growth stimuli from the megatrends evident in modern automotive production: electromobility and lightweight construction. In particular, the transition from traditional drive systems to electromobility gained momentum during the pandemic and is benefiting from various government support programs in a number of countries.
UPDATE ON ACQUISITION OF MBCC
Along with seven completed acquisitions in the past year under review, Sika was able to sign a binding agreement for the takeover of
The market for construction chemical products and solutions is set to grow to around
DIVIDEND INCREASE AND OUTLOOK
Given the record results, the Board of Directors will be proposing a 16.0% increase in the gross dividend to
Thanks to its innovative technologies, Sika is the partner of choice for many customers in the construction and industrial sectors. Government-supported investment programs running into the billions will provide further impetus for its business in the coming years. In addition, Sika is making targeted use of the megatrends that drive its key markets.
Based on these expectations, Sika is confirming its 2023 strategic targets. The company remains aligned for long-term success and profitable growth. With its focus on the six strategic pillars – market penetration, innovation, operational efficiency, acquisitions, strong corporate values, and sustainability – Sika is seeking to grow by 6%–8% a year in local currencies up to 2023. From 2021 onwards, the company is aiming to achieve an EBIT margin in the range of 15%–18%. Projects in the areas of operations, logistics, procurement, and product formulation should result in an annual improvement in operating costs equivalent to 0.5% of sales.
For fiscal 2022, Sika expects sales to rise by well over 10% in local currencies – surpassing
in CHF mn | as % of net sales | 2020 | as % of net sales | 2021 | Δ in % |
Net sales | 7,877.5 | 9,252.3 | +17.5 | ||
Gross result | 54.8 | 4,314.8 | 51.8 | 4,791.3 | +11.0 |
Operating profit before depreciation (EBITDA) | 19.0 | 1,497.6 | 19.0 | 1,758.0 | +17.4 |
Operating profit (EBIT) | 14.4 | 1,130.5 | 15.0 | 1,391.4 | +23.1 |
Net profit | 10.5 | 825.1 | 11.3 | 1,048.5 | +27.1 |
Net profit per share (EPS) in CHF1 | 5.82 | 7.39 | +27.0 | ||
Operating free cash flow | 16.0 | 1,259.4 | 9.8 | 908.4 | -27.9 |
Balance sheet total | 9,794.0 | 10,699.9 | +9.2 | ||
Shareholders' equity | 3,288.0 | 4,395.9 | |||
Equity ratio in % | 33.6 | 41.1 | |||
Net working capital | 16.9 | 1,329.5 | 18.4 | 1,701.9 | |
ROCE in % | 16.6 | 20.1 | |||
Number of employees | 24,848 | 27,059 | +8.9 |
1) undiluted
The Annual Report and the media conference/analyst presentation on the 2021 financial year can be downloaded at www.sika.com.
Link to Annual Report: www.sika.com/annualreport
Link to live transmission of the media, investor, and analyst presentation of
FINANCIAL CALENDAR | |
Net sales first quarter 2022 | |
54th Annual General Meeting | |
Half-Year Report 2022 | |
Results first nine months 2022 | |
Net sales 2022 | |
Media conference/analyst presentation | |
on 2022 full-year results |
CONTACT
Corporate Communications &
Investor Relations
+41 58 436 68 21
slappnig.dominik@ch.sika.com
Sika is a specialty chemicals company with a leading position in the development and production of systems and products for bonding, sealing, damping, reinforcing, and protecting in the building sector and motor vehicle industry. Sika has subsidiaries in 101 countries around the world and manufactures in over 300 factories. Its more than 27,000 employees generated annual sales of
The media release can be downloaded from the following link:
Media Release
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