Sika Records High Special Expenses for Acquisition
Published: Friday, Aug 4th 2023, 07:00
Updated At: Friday, Oct 13th 2023, 14:12
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Sika, a Swiss-based building chemistry and adhesive manufacturer, has continued to grow despite a difficult economic environment. Adjusted for high costs associated with a multi-billion dollar acquisition, the company's profits would have also increased. Sika is now preparing for a better second half of the year. From January to June, the company's revenue increased by 1.8% to 5.35 billion Swiss francs. However, the strong Swiss franc had an impact on the company's performance, with a 7.9% increase in local currencies. This is the first time Sika has reported figures that include the acquisition of MBCC in May. The acquisition effect was 7.2%, indicating that the majority of the growth came from the acquisition. The market conditions were challenging in the first half of the year, with high inflation rates and a strong interest rate increase affecting the construction industry. However, Sika expects market conditions to improve in the second half of the year. The company's profits were significantly affected by high special costs, including 89.5 million francs for the acquisition and integration of MBCC. The operating profit (EBIT) decreased by 21.6% to 660.4 million francs, resulting in a margin of 12.4%, compared to the record high of 16.0% in the previous year. Adjusted for one-off costs, the operating profit increased by 6.9% to 749.9 million francs and the margin increased by 0.6 percentage points to 14.0%. Sika expects revenue to increase by more than 15% in local currencies in the current full year, including the acquired MBCC. The company will announce new medium-term goals at the beginning of October.nnnn
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