Due to purchasing costs: Sika writes less profit

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As provisionally published in January, sales rose 14.5 percent in local currency terms to 11.2 billion francs. Sika grew 13.3 percent through acquisitions alone; The highlight was the takeover of the rival MBCC from Germany, which was completed in May.

With BASF’s former construction chemicals business, Sika achieved additional annual sales of 2.1 billion. The Swiss-based company has become the undisputed market leader with its products used to strengthen and insulate building materials.

But Sika also grew organically in a negatively evolving market. Thus, the company further expanded its market share.

The largest acquisition in the company’s history also came at a price: net profit fell by 8.6 percent to 1.06 billion francs, due to incurring high special costs of $131.5 million for the acquisition and integration of MBCC.

In addition, Sika had recorded a high extraordinary book profit from the sale of part of the company the previous year. But shareholders need not starve: The dividend must increase by 10 cents to 3.30 francs per share.

Because Sika prefers to be measured by operating profit at the EBITDA level, which excludes depreciation and other financing expenses, among other things. EBITDA increased by 4.1 percent to 2.04 billion francs, but the corresponding margin fell by 0.5 percentage points to 18.2 percent.

Commenting on business developments, CEO Thomas Hasler said the environment is challenging and is likely to remain so in 2024. However, there is good momentum in major construction and infrastructure projects in all regions. Sika is “perfectly” positioned to capitalize on this business potential.

Therefore, the group is confident of increasing its sales in local currencies by 6 to 9 percent in 2024. Operating profit EBITDA is expected to increase disproportionately.

Sika also confirmed the medium-term goals of “Strategy 2028”. Accordingly, the operating profit margin should increase to around 20-23 percent.

As the group also announced, Thomas Aebischer will be nominated as a member of the board of directors at the next general meeting. (SDA)

Source :Blick