MOSCOW (MRC) -- Construction chemicals firm Sika tracked a record increase in sales and profits for 2021 in spite of challenges surrounding raw material pricing and supply constraints, said the company.
Operating profits increased as Sika was able to pass down price increases to its customers supported by cost management, recording growth across all regions. FCF was down due to increased inventory value and a higher level of investments.
Sika announced the acquisition of MBCC Group (formerly BASF’s construction chemicals business), subject to approval from the authorities, with conclusion of the deal expected in the second half of 2022.
Sika expects sales to rise by more than well above 10% in local currencies, surpassing Swfr10bn for the first time, which will drive an increase in earnings.
On the back of this Sika announced it is targeting growth by 6-8% a year in local currencies to 2023, with a margin range for earnings before interest (EBIT) in the range of 15-18%.
As MRC informed earlier, Sika commissioned a manufacturing facility in Dubai, United Arab Emirates (UAE), which produces epoxy resins aimed at flooring solutions. Sika has decided to invest in the expansion of its manufacturing facilities at the Dubai site in order to increase flexibility in production, shorten delivery times, optimize cost structures, and reduce inventories.
Sika is a specialty chemicals company with a leading position in the development and production of systems and products for bonding, sealing, damping, reinforcing, and protecting in the building sector and motor vehicle industry. Sika has subsidiaries in 101 countries around the world and manufactures in over 200 factories. Its more than 20,000 employees generated annual sales of CHF 7.09 billion in 2018.