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Construction chemicals maker Sika posts highest-ever annual profit

Construction chemicals maker Sika posts highest-ever annual profit
Construction chemicals maker Sika posts highest-ever annual profit   -   Copyright  Thomson Reuters 2022
By Reuters

-Sika posted a 27.1% jump in full-year net profit on Friday and proposed a 16% higher dividend, as the Swiss construction chemicals maker benefited from an upturn in building projects after the pandemic and a raft of acquisitions.

The company, which makes products used in reinforcing and waterproofing concrete, posted earnings before interest and tax (EBIT) of 1.39 billion Swiss francs ($1.51 billion) for the 12 months ended Dec. 31, up from 1.13 billion Swiss francs in 2020.

The figure exceeded the pre-pandemic level of 1.06 billion Swaiss franc operating profit for 2019. Sika’s EBIT margin of 15% also met its guidance.

“Sika has generated lasting added value in a challenging year…. We will pursue our strong growth in all regions and we will continue to deliver impressive performance in the future,” Chief Exective Thomas Hasler said in a statement.

The company proposed a 16% rise in its gross dividend to 2.90 Swiss francs per share. Sika expects annual sales to surpass 10 billion Swiss 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 carmakers as adhesives, also said it expects an annual sales growth of 6-8% in the years up to 2023 and an operating profit margin of 15-18% from 2021.

After making seven acquisitions last year, Sika said it was aiming to increase its share of the construction chemicals market from around 10% now to 12% by 2025.

($1 = 0.9212 Swiss francs)