Construction chemicals Sika earns significantly more in 2024 and increases dividend
Sika continued to grow in the 2024 financial year, mainly thanks to a major acquisition. The construction chemicals and adhesives manufacturer increased its profitability even more significantly.
21.02.2025, 07:54
SDA
Sales climbed - as already published on a provisional basis in January - by 7.4 percent in local currencies to 11.76 billion Swiss francs, as the company announced on Friday. Sika grew by 6.3 percent through acquisitions alone, the most important of which was the takeover of competitor MBCC from Germany, which was completed in May 2023.
In terms of profitability, Sika was able to make significant gains - thanks in part to an improved material margin. Operating profit at EBITDA level rose by 11 percent to CHF 2.27 billion. The corresponding margin reached 19.3 percent (previous year 18.2%).
At the bottom line, the construction supplier recorded an even greater leap. Net profit rose by 17.4 percent to 1.25 billion. The dividend is set to rise by 30 centimes to CHF 3.60 per share. This exceeded the expectations of the analysts surveyed by AWP.
The environment was "very challenging", explained Sika on the course of business. "We have proven that we are able to expand our market share even under challenging conditions," Sika CEO Thomas Hasler is quoted as saying in the press release.
Sika aims to increase sales in local currencies by 3 to 6 percent in the current year. The operating profit EBITDA is expected to increase disproportionately. Specifically, Sika anticipates an operating profit margin of 19.5 to 19.8 percent.
At the same time, Sika confirmed the medium-term targets of "Strategy 2028". According to this, the operating profit margin should rise to around 20 to 23 percent.
Furthermore, Kwok Wang Ng will be proposed to the Annual General Meeting for election to the Board of Directors. Monika Ribar, on the other hand, will not be standing for re-election.
