- 13.0% sales growth (8.3% in Swiss francs) to CHF 5.57 billion
- Growth in all regions
- Sales up 15.2% in the emerging markets
- Above-average increase in net profit expected for business year 2014
The Sika success story continues. The implementation of Strategy 2018 is well under way. Sales are at record levels in all regions. All relevant growth targets for full-year 2014 have been exceeded. An above-average increase in net profit is expected for the business year 2014.
In the fourth quarter of 2014, Sika's consolidated net sales rose by 5.1% despite a very strong prior-year period (+17.8%). There was a considerable decrease in negative currency effects. On a currency-adjusted basis, sales were up 4.6%.
Sales for full-year 2014 rose by 13.0% to CHF 5.57 billion. Sika thus significantly exceeded its growth targets. All regions contributed to this growth and set new sales records. The negative currency effect for the full year was -4.7%. Sales in Swiss francs increased by 8.3% after adjustment for currency effects.
Sika CEO Jan Jenisch: "We exceeded our growth targets not only in the last quarter of 2014 but also throughout the entire financial year. These record results were achieved thanks to our employees, who use their expertise and demonstrate huge commitment every day as they implement our growth model. Our Strategy 2018, under which we are accelerating the build-up in the emerging markets, investing in new factories and launching new products, is producing results that exceed our targets and expectations."
RECORD SALES IN ALL REGIONS
Sales in the region EMEA (Europe, Middle East, Africa) increased by 13.3% in the year under review. Visible growth drivers in the Middle East and Africa and the moderate recovery seen in the southern European markets had a positive impact on the region's development.
North America recorded a 7.9% increase in sales. Construction projects that had been shelved in recent years are now being implemented, and a greater number of investments are being made in infrastructure projects and commercial buildings.
The region Asia/Pacific grew by 12.8%, achieving sales of over CHF 1 billion for the first time. The majority of countries achieved double-digit growth rates and increased their market share.
At 15.9%, sales growth remained consistently high in Latin America in 2014. In a demanding business environment, Sika benefited from its strong market presence.
EIGHT NEW FACTORIES
Accelerated development and expansion in the emerging markets continued in 2014. New factories were opened in Brazil, Mexico, Indonesia, Singapore, India and Serbia. Two additional plants were commissioned in the USA. The founding of six new international subsidiaries in Sri Lanka, Bosnia-Herzegovina, Albania, Mozambique, Ivory Coast and Nigeria has created a basis for tapping these new markets.
ABOVE-AVERAGE INCREASE IN NET PROFIT EXPECTED
Sika expects an above-average increase in net profit for the full year. With sales growth exceeding expectations and gross margins improving in the fourth quarter, the operating result (EBIT) is expected to exceed CHF 600 million.
ENSURING THAT THE SIKA SUCCESS STORY CONTINUES
On December 8, 2014, Sika stated its position on the change of control to Saint-Gobain, and on December 17, 2014, it also presented concrete proposals for ensuring that the Sika success story continues. The Board of Directors and Group Management reject the change of control in the currently proposed form. However, they will continue to act in the best interest of Sika and its stakeholders, and this includes holding constructive talks with all the parties involved. The aim is to continue Sika's successful growth strategy without hindrance.
Conference call today, January 13, 2015 at 11 am (CET)
In connection with the publication of the sales figures for 2014 a conference call will be held today. Please dial in 10 to 15 minutes before the start at:
+41 (0)58 310 50 00 (Europe, Asia)
+1 (1)631 570 56 13 (North America, Latin America)
+44 (0)203 059 58 62 (UK)
An operator will connect you with Jan Jenisch (CEO), Adrian Widmer (CFO) and Dominik Slappnig (Head IR). The conference call will be recorded and remains retrievable for 48 hours under the following numbers:
+41 (0)91 612 43 30 (Europe, Asia)
+1 (1)631 982 45 66 (North America, Latin America)
+44 (0)207 108 62 33 (UK)
Upon request please enter the code 10680 followed by the #sign.
FINANCIAL CALENDAR
| Media conference/analyst presentation | Friday, February 27, 2015 |
| on full-year results 2014 | |
| Sales first quarter 2015 | Tuesday, April 14, 2015 |
| 47th Annual General Meeting | Tuesday, April 14, 2015 |
| Half-year report 2015 | Friday, July 24, 2015 |
| Results first nine months 2015 | Thursday, October 29, 2015 |
| Net sales 2015 | Tuesday, January 12, 2016 |
SIKA CORPORATE PROFILE
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 the motor vehicle industry. Sika has subsidiaries in 90 countries around the world and manufactures in over 160 factories. Its more than 16,000 employees generated annual sales of CHF 5.6 billion in 2014.
The media release can be downloaded from the following link:
