Ad Hoc Announcement Pursuant to Article 53 of the SIX Exchange Regulation Listing Rules
SIKA WITH RECORD RESULTS – JUMP IN NET PROFIT OF 17.4%
Sika posts net sales of CHF 11,763.1 million (+4.7% in CHF) in 2024
Sales growth of 7.4% in local currencies
Increase in material margin to 54.5% (2023: 53.6%)
11.0% growth in operating profit before depreciation and amortization (EBITDA) to CHF 2,269.5 million (previous year: CHF 2,044.7 million)
Strong increase in EBITDA margin to 19.3% (2023: 18.2%)
17.4% jump in net profit to CHF 1,247.6 million (previous year: CHF 1,062.6 million)
16.7% increase in diluted earnings per share to CHF 7.76 (previous year: CHF 6.65)
Proposed dividend per share of CHF 3.60 (previous year: CHF 3.30)
Outlook for fiscal 2025:
Expected sales increase in local currencies of 3-6%, and
over-proportional increase in EBITDA and rise in EBITDA margin to 19.5%-19.8%
Confirmation of 2028 strategic mid-term targets for sustainable, profitable growth
Sika can look back on a positive business development in the past fiscal year. The company reports a strong performance in a market that remained very challenging, achieving record results. In 2024, Sika generated net sales of CHF 11,763.1 million (previous year: CHF 11,238.6 million). In local currencies this corresponds to an increase of 7.4%. Sales growth in Swiss francs amounted to 4.7%. This figure includes a foreign currency impact of -2.7%. Organic growth was 1.1% above the previous year’s level. In the second half of the year, organic growth came to 1.7%. Sika thus once again expanded its market share in the past fiscal year.
Thomas Hasler, CEO: “Despite a market environment that remains very challenging, we achieved new record sales and an over-proportional increase in profits. We are proud of this performance and have demonstrated our ability to expand our market shares even under demanding conditions and to fully exploit the strengths of the MBCC acquisition, our numerous growth initiatives and our powerful and sustainable product innovations. We have positioned ourselves as a strong player and will continue to drive growth and exploit business opportunities for Sika. Our more than 34,000 employees have once again delivered outstanding results and have made a significant contribution to Sika's success with their positive mindset and motivation – I would like to thank them most sincerely for this.”
PRONOUNCED IMPROVEMENT IN MATERIAL MARGIN – OVER-PROPORTIONAL INCREASE IN PROFITABILITY In 2024, Sika significantly increased its material margin to 54.5% (previous year: 53.6%), which is within the expected bandwidth of 54-55%. EBITDA increased over-proportionally by 11.0% to CHF 2,269.5 million (previous year: CHF 2,044.7 million), a new record level. The EBITDA margin reached 19.3% (previous year: 18.2%). Net profit also reached a new record level at CHF 1,247.6 million which is 17.4% higher than previous year (previous year: CHF 1,062.6 million).
With a high operating free cash flow of CHF 1,402.9 million (previous year: CHF 1,441.5 million), or 11.9% of sales, well above the strategic target of 10%, Sika reduced its indebtedness in 2024 and further strengthened its balance sheet.
GROWTH AND MARKET SHARE GAINS IN ALL REGIONS All regions performed well, contributing to Sika’s sustained growth and expansion of market share. Sika thus succeeded in achieving further organic growth in the past fiscal year, even under difficult market conditions.
The EMEA region (Europe, Middle East, Africa) reported a sales increase in local currencies of 7.3% (previous year: 14.1%). In 2024, the market environment in the European construction markets was very challenging, while countries in the Middle East and Africa were able to greatly expand their business activities. Contrary to the market trend, Sika was able to perform well in a negative market in Germany, while southern countries such as Italy and Spain achieved slight growth over the course of the year. The automotive and industrial business declined. This is due in particular to falling demand for new vehicles in Europe. Only the sale of hybrid vehicles increased in 2024.
In local currency terms, the Americas region achieved an 11.2% increase in sales (previous year: 15.0%). The year 2024 was the first time that revenues in the region surpassed CHF 4 billion. Sika USA posted steady, strong growth. State-supported infrastructure projects and commercial construction projects that are being implemented as part of the drive to relocate production in the USA are supporting the positive trend. Thanks to Sika’s local presence – close to 100% of all the products and solutions that are sold in the USA are manufactured in the USA – and strong position in the refurbishment business, Sika outperformed the market. Latin America also contributed to the positive trend in the region with solid growth.
Sales in the Asia/Pacific region rose by 2.4% in local currencies (previous year: 14.7%). Despite government support measures, the Chinese construction market remains markedly negative. This is reflected particularly in Sika’s declining project business and, to some extent, in its distribution business. By contrast, Southeast Asia picked up momentum over the course of 2024 and achieved high single-digit organic growth. In the automotive and industry business, Sika continued to increase the share of its technologies in vehicles of local and international manufacturers in China, Japan, and India.
DIVIDEND INCREASE AND NEW APPOINTMENT TO THE BOARD OF DIRECTORS In view of the good results, at the Annual General Meeting to be held on March 25, 2025, the Board of Directors will be proposing to shareholders that the gross dividend per share be increased from CHF 3.30 to CHF 3.60 (+9.1%). Half of the payment is to be distributed from the reserves from capital contribution. Sika has increased its dividend at a double-digit average annual rate for the last 25 years.
At the Annual General Meeting on March 25, 2025, Kwok Wang Ng will be nominated for election to the Board of Directors. Monika Ribar, who has been a member of the Board of Directors since 2011, will not be standing for re-election.
OUTLOOK Sika is confident to successfully continue to execute on its strategy and deliver sustainable, profitable growth in a slowly recovering economic environment. Sika is confirming its 2028 strategic mid-term targets for sustainable, profitable growth.
For the 2025 fiscal year, Sika is expecting sales growth in local currencies of 3-6%. The company expects a further over-proportional increase in EBITDA and an expansion of the EBITDA margin to 19.5%-19.8%.
KEYFIGURES2024
inCHFmn
as %of net sales
2023
as %of net sales
2024
Δ in%
Net sales
11,238.6
11,763.1
+4.7
Gross result
53.6
6,024.8
54.5
6,416.0
+6.5
Operating profit before depreciation (EBITDA)
18.2
2,044.7
19.3
2,269.5
+11.0
Operating profit (EBIT)
13.8
1,549.1
14.6
1,713.9
+10.6
Net profit
9.5
1,062.6
10.6
1,247.6
+17.4
Net profit per share (EPS) in CHF1
6.82
7.76
+13.8
Operating free cash flow
12.8
1,441.5
11.9
1,402.9
-2.7
Balance sheet total
15,049.2
15,977.2
+6.2
Shareholders' equity
5,933.2
7,046.8
Equity ratio in %
39.4
44.1
Net working capital
19.1
2,145.6
19.7
2,311.6
ROCE in %
16.3
14.2
Number of employees
33,547
34,476
+2.8
1 undiluted
The Annual Report and the media conference/analyst presentation on the 2024 financial year can be downloaded at www.sika.com.
Link to live transmission of the media, investor, and analyst presentation of February 21, 2025, 10.00 a.m. (CET): www.sika.com/live
FINANCIAL CALENDAR
57th Annual General Meeting Net sales first quarter 2025 Half-Year Report 2025 Capital Markets Day Results first nine months 2025 Net sales 2025 Media conference/analyst presentation on 2025 full-year results
Tuesday, March 25, 2025 Tuesday, April 15, 2025 Tuesday, July 29, 2025 Tuesday, October 7, 2025 Friday, October 24, 2025 Tuesday, January 13, 2026 Friday, February 20, 2026
SIKA AG CORPORATE PROFILE Sika is a specialty chemicals company with a globally leading position in the development and production of systems and products for bonding, sealing, damping, reinforcing, and protection in the building sector and industrial manufacturing. Sika has subsidiaries in 102 countries around the world and, in over 400 factories, produces innovative technologies for customers worldwide. In doing so, it plays a crucial role in enabling the transformation of the construction and transportation sector toward greater environmental compatibility. With more than 34,000 employees, the company generated sales of CHF 11.76 billion in 2024.
