Sika continues sales growth
Published by Rebecca Bowden,
With sales growth of 8.1% in local currency, Sika has continued its successful growth trajectory in 1H17, and has achieved a new sales record of CHF2994.9 million. Targeted investments in new products, national subsidiaries, and factories as part of Sika’s growth strategy provided growth stimuli. In the first half of the year, the negative currency effect (-1.4%) reduced sales growth in Swiss francs to 6.7%.
The positive development of the last six years continued unabated in 1H17. Volume growth, together with disproportionately low cost development and price adjustments, resulted in a further improvement in margins, which helped to offset slightly negative currency effects and rising commodity prices. As a result, operating profit and net profit posted new record values in the first half of the year. Operating profit (EBIT) improved by 13.7% (+CHF48.4 million) to CHF402.1 million (previous year: CHF353.7 million). Net profit rose significantly by 16.0% (+ CHF39.4 million) to CHF285.7 million (previous year: CHF246.3 million.).
Paul Schuler, CEO: “With a clear sales increase of 8.1% and a surge in net profit of 16.0%, we are continuing to consistently and successfully deliver our growth strategy. We posted double-digit growth rates in Eastern Europe, Africa, North America, Argentina, the Pacific area and in our automotive business, and we have clearly grown much faster than the market in a number of countries. The positive performance in the first half of 2017, the opening of a further national subsidiary, and the commissioning of three new factories all bring us one step closer to achieving our strategic targets for 2020. Sika’s success is based on team effort. Thanks to the commitment of our employees and the strength of our growth model, we can look forward to the further business performance in the second half of 2017.”
The strategic targets 2020 were successfully pursued in 1H17, with new record results achieved. The strong start to the year supports the target for the full year, which aims at a 6 – 8% increase in sales, to more than CHF6 billion for the first time. Volatile and rising commodity prices present a challenge in the current year. EBIT and net profit are once again expected to increase at disproportionately high rates. The successful growth strategy with the new targets for 2020 will continue in 2017. The unknown outcome of Saint-Gobain’s hostile takeover attempt remains an element of uncertainty for the future.
Read the article online at: https://www.worldcement.com/europe-cis/31072017/sika-continues-sales-growth/
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