Sika AG: GROWTH IN ALL REGIONS, WITH ABOVE-AVERAGE RISE IN NET PROFIT BY 11.1%

GlobeNewswire

  • Sales grow by 5.6% (-1.2% in Swiss francs) to CHF 2.625 billion

  • Growth in all regions

  • Above-average improvement in margins

  • Net profit up 11.1%

  • Outlook for 2015: Sales growth of 6 to 8%; above-average rise in margins

Significant volume increases and gains in market share were achieved in all regions despite a very strong prior-year period (sales growth of 18.1%). At constant exchange rates, sales rose by 5.6% to CHF 2.625 billion. The strong Swiss franc produced negative currency effects of 6.8%, leading to a sales result of -1.2%. The strength of the Swiss franc was more than compensated by volume growth, ongoing efficiency improvements and lower commodity prices which lead to margins increasing by an above-average amount. Operating profit rose by 8.3% to CHF 288.6 million (previous year: CHF 266.4 million) while net profit increased by 11.1% to CHF 197.3 million (previous year: CHF 177.6 million).

Sika CEO Jan Jenisch: "Once again, the successful first half shows that the rigorous implementation of our growth model is delivering outstanding results. Despite the challenging environment, our 17,000 employees have demonstrated their competence and commitment and achieved a record result. An increase in net profit of 11.1% is a very convincing result, given the appreciation of the Swiss franc. Double-digit sales growth in the core markets of the USA, Latin America, Africa, the Middle East, Eastern Europe, Southeast Asia and the Pacific underlines the strength of our growth model and allows us to face the future and the second half of 2015 with confidence."

GROWTH IN ALL REGIONS
In the region EMEA (Europe, Middle East, Africa), sales grew by 3.8% in the first half of 2015. Growth accelerated in the second quarter thanks to good performance in Eastern Europe, Africa and the Middle East. Sales in Western Europe did not quite match the extremely strong prior-year result. The expansion of production capacity resulting from the opening of new factories in Dubai and La Réunion will generate additional growth momentum in the region in the future.

Latin America and North America recorded the strongest sales growth. Despite a difficult market environment in Brazil, gains in market share led to a 13.1% increase in sales in Latin America. Investment in a new factory in Paraguay and the launch of new products are paving the way for future growth. In North America, the healthy US construction sector resulted in an 8.2% increase in sales. Expansion of the production capacities is in line with the positive outlook and is a significant growth driver for the future.

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