Swiss construction chemicals maker Sika AG reported a 20% jump in its first-quarter sales, as the broader construction industry benefited from an upturn in projects after the pandemic, as per the company's press release.
The company, whose chemical additives strengthen and waterproof concrete, said sales came in at 2.39 billion Swiss francs (USD2.57 billion) for the three months ended March 31, compared with 2.1 billion francs in the year-ago period. Sales in local currencies rose 21.9%.
Sika confirmed its annual sales forecast of crossing 10 billion francs for the first time in 2022, driven by a more than 10% sales jump in local currencies.
Sika, whose products are also used by car makers as adhesives, has forecast annual sales growth of 6%-8% in the years up to 2023 and an operating profit margin of 15%-18% from 2021.
After a series of acquisitions, Sika aims to increase its share of the construction chemicals market to 12% by 2025 from around 10% now.
As MRC reported previously, Sika has recently closed the transaction related to the divestment of the European industrial coatings business. The deal, which includes Sika's European industrial coatings business with the main location and manufacturing facility in Vaihingen, Germany, was announced on 19 August last year.
We remind that earlier this year, Sika acquired Canada’s Sable Marco Inc, which manufactures cementitious products and mortars, for an undisclosed amount. Sable Marco is headquartered in Pont Rouge, near Quebec City, and generates annual sales of Swiss francs (Swfr) 20m (USD22m). The acquisition “should open up new opportunities for Sika in the eastern region of Canada and clearly improve Sika’s access to the retail distribution channel,” the company said.
We also remind that Sika commissioned a manufacturing facility in Dubai, United Arab Emirates (UAE), which produces epoxy resins aimed at flooring solutions. Sika has decided to invest in the expansion of its manufacturing facilities at the Dubai site in order to increase flexibility in production, shorten delivery times, optimize cost structures, and reduce inventories.
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 200 factories.
MRC