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SIKA SETS NEW RECORDS IN SALES AND PROFIT – ORGANIC GROWTH ACCELERATES FURTHER

Sika AG
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Sika AG
Sika AG

Ad Hoc Announcement Pursuant to Article 53 of the SIX Exchange Regulation Listing Rules

SIKA SETS NEW RECORDS IN SALES AND PROFIT – ORGANIC GROWTH ACCELERATES FURTHER

  • Sales of CHF 8,914.9 million (+5.5% in CHF) after first nine months

  • Sales growth of 9.1% in local currencies (foreign currency effect of -3.6%)

  • Continued steady improvement in organic growth from 0.2% in Q1 to 1.7% in Q3

  • Expansion of material margin to 54.7% (previous year: 53.1%)

    • Operating profit before depreciation and amortization (EBITDA) of CHF 1,701.7 million (previous year: CHF 1,502.7 million)

    • EBITDA margin rose significantly to 19.1% (previous year: 17.8%)

    • Acquisition of Kwik Bond, USA and Vinaldom, Dominican Republic

  • New plants opened in Peru and China, major plant expansion in Indonesia

    • Outlook for fiscal 2024 confirmed:

      • Sales increase of 6% to 9% in local currencies

      • Over-proportional increase in EBITDA

      • Confirmation of 2028 strategic targets for sustainable, profitable growth

Sika sets new records for sales and profitability during the first nine months of the fiscal year. The company was also able to further accelerate organic growth, increasing the pace quarter-on-quarter this year. Sika gained additional market share once again in the third quarter and thus achieved a record CHF 8,914.9 million in sales during the first nine months (previous year: CHF 8,449.2 million), an increase of 9.1% in local currencies. Sales growth in Swiss francs amounted to 5.5%, which includes a negative currency effect of -3.6%. In terms of profitability, Sika achieved a new EBITDA record of CHF 1,701.7 million (2023: CHF 1,502.7 million) corresponding to an increase of 13.2%. The EBITDA margin grew substantially to 19.1% (previous year: 17.8%).

Thomas Hasler, CEO: “Sika has been delivering solid results consistently for years and breaking record after record. We have once again achieved strong and highly profitable growth this year and gained additional market share, despite persistently challenging market conditions. We are especially pleased that organic growth in the Americas region, where we have improved from quarter to quarter, is above four percent in the third quarter. This is mainly due to the large number of infrastructure projects, reshoring activities in the North American economy, and the strong demand for semiconductor plants and data centers. We are on track for a record year and in an excellent position to gain further market share and increase profitability in the future."

MATERIAL MARGIN WITHIN 54-55% RANGE AND EBITDA UP OVER-PROPOTIONALLY
Sika managed to raise its material margin significantly to 54.7% (previous year: 53.1%), bringing it within the range of 54% to 55%. Efficiency gains and synergies from the MBCC acquisition have led to an EBITDA margin of 19.1% (previous year: 17.8%), despite inflationary cost pressure, equivalent to a 13.2% increase. Operating profit before depreciation, and amortization (EBITDA) in the first nine months were CHF 1,701.7 million, setting a new record.

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