Sika reports record sales in excess of CHF10bn

In 2022 Sika reported sales in excess of CHF10bn (US$10.83bn) for the first time as the company saw sales growth of 15.8 per cent in local currencies compared to the previous year. Total sales came in at CHF10.49bn despite the increasingly difficult backdrop of rising raw material prices and a slowdown in construction sector growth in the second half of the year.

In the EMEA region sales increased by 8.3 per cent YoY in local currencies in 2022, despite Sika’s distribution business seeing a decline in volumes. Volumes in its project business, which accounts for around 60 per cent of sales in the region, witnessed only a slight drop. The region’s strongest growth rates were recorded in the countries in Africa and the Middle East, which once again achieved double-digit sales growth. Sika moved to a new site in Tanzania in 2022, and is now manufacturing mortar products in Dar es Salaam on top of concrete admixtures. It also extended its facility in Côte d'Ivoire.

The Americas region recorded growth in local currencies of 27.5 per cent YoY. Much of this growth came from projects in the US infrastructure segment, which saw siginificantly higher activity in 2022 compared to the previous year. High demand also stemmed from investments in commercial construction projects, including stadiums and data centres. 2022 saw a new mortar and concrete admixture production facility came on stream in Bolivia, and a new manufacturing plant for concrete admixtures open near Washington DC.

Sales in the Asia/Pacific region rose by 14.8 per cent YoY in local currencies with the distribution business in China recording double-digit growth rates. However, the Chinese project business was heavily impacted by pandemic-related lockdowns in the first nine months of the year and again at the end of 2022. Sika’s business activities in India continue and double-digit growth was achieved in challenging markets throughout southeast Asia once the numerous lockdowns were lifted.

Swiss-based Sika’s acquisition of Germany-based MBCC, which is forecast to close in the 1H23, is expected to generate annual synergies of CHF160-180m, according to the company. For the 2022 fiscal year, the company anticipates a record-high EBIT and an EBIT margin of 15 per cent.