SALES RISE BY 12.4% THANKS TO MBCC ACQUISITION - SIGNIFICANT PROFITABILITY INCREASE IN Q3
SIKA INVESTOR PRESENTATION
OCTOBER 2023
OUR FIRST NINE MONTHS 2023
OUR NEW STRATEGY 2028 - BEYOND THE EXPECTED
OUTLOOK
1. OUR FIRST NINE MONTHS 2023
SALES RISE BY 12.4% THANKS TO MBCC ACQUISITION - SIGNIFICANT PROFITABILITY INCREASE IN Q3
RESULTS IN THE FIRST 9 MONTHS OF 2023
GROWTH IN LOCAL CURRENCIES OF 12.4%
Sales and profit
Sales growth of 12.4% in local currencies. Record sales of CHF 8,449.2 million (+5.6% in CHF)
Expansion of material margin to 53.1% (first 9 months of 2022: 49.3%)
Increase in EBIT margin adjusted for acquisition-related costs to 14.8% (first 9 months of 2022: 13.8%)
Reported EBIT of CHF 1,144.8 million (first 9 months of 2022: CHF 1,231.5 million)
Operating free cash flow significantly increased to CHF 877.3 million (first 9 months of 2022: CHF 442.4 million)
Key investments
Completion of the acquisition of MBCC Group, acquisition of Thiessen Team (USA) and Chema (Peru)
Opening of new plants in Kharagpur (East India) and Chattanooga (Tennessee, USA)
Outlook
Sales increase in local currencies of above 15%, including MBCC
Over-proportionalincrease in EBIT confirmed, excluding MBCC
Operating free cash flow (as % of net sales) of over 10% expected
4
HIGHLIGHTS YEAR TO DATE COMPLETION OF MBCC ACQUISITION
Closing of the acquisition of MBCC Group
(May 2023)
Opening of a new mortar and admixture plant in Eastern India (June 2023)
Acquisition of Thiessen Team USA (July 2023)
New product line for macro fibers in Chattanooga, Tennessee (July 2023)
Acquisition of Chema, a leading mortar manufacturer in Peru
(August 2023)
5
INCREASED MBCC SYNERGY POTENTIAL UPDATED TO CHF 180 - 200 MILLION P.A. BY 2026
200
180 180
160
Initial guidance
Updated guidance
in CHF mn
6
2023 SALES GROWTH LIFTED BY ACQUISITIONS
12.4% SALES GROWTH (5.6% IN CHF)
+ 10.6%
9M 2022
9M 2023
+ 12.4%
in CHF billion, growth in LC
+ 14.0%
+ 13.5%
+ 13.3%
2.62
3.38
1.81
0.64
8.45
Americas
EMEA
Asia/Pacific
Global Business
Group
7
SALES GROWTH FIRST NINE MONTHS 2023
MBCC AS SIGNIFICANT CONTRIBUTOR - HIGH FX IMPACT
in CHF mn
-547
+878
+107 +14
8,449.2
7,998.5
Net sales
Organic
Bolt-on
MBCC
FX
Net sales
Nine
acquisitions
Nine
Months 22
(net)
Months 23
8
SALES GROWTH NINE MONTHS
GROWTH LIFTED BY MBCC ACQUISITION
18.1%
18.5%
1.3%
3.4%
12.4%
in LC
acquisition
16.8%
15.1%
11.1%
organic
1.3%
in CHF mn
9M 2021
9M 2022
9M 2023
Sales
6'862.7
7'998.5
8'449.2
9
SALES GROWTH FIRST NINE MONTHS 2023
LOCAL CURRENCY GROWTH IN ALL REGIONS - HIGH FX IMPACT
+4.8%
+7.8%
+3.3%
+8.2%
Growth in CHF
+10.6%
+14.0%
+13.5%
+13.3%
Growth in LC
-5.8%
-6.2%
-10.2%
-5.1%
FX impact
+12.8%
+13.9%
+8.1%
+0.0%
Acquisition
16%
84%
Construction
Industry
EMEA
Americas
Asia/Pacific
Global Business
10
Attachments
Original Link
Original Document
Permalink
Disclaimer
Sika AG published this content on 20 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 October 2023 03:22:33 UTC.
Sika AG is the world leader in manufacturing and marketing construction chemicals. Net sales break down by family of products as follows:
- construction chemicals (84.1%): admixtures for concretes and mortars, repair mortars, reinforcement and sealing products, sealants, etc.;
- industrial manufacturing chemicals (15.9%): adhesives and sealants (mainly polyurethanes, glues, and butyls) primarily for the automotive, railway and shipbuilding sectors.
Net sales are distributed geographically as follows: Switzerland (3.5%), France (6%), Europe/Middle East/Africa (30.6%), the United States (21.4%), Americas (9%), China (11.6%), Asia/Pacific (10.4%) and other (7.5%).
SIKA AG 
