Sika (SIKA) Q3 2024 earnings summary

Executive summary

• Achieved record sales of CHF 8,914.9 million for the first nine months of 2024, up 5.5% in CHF and 9.1% in local currencies, with organic growth accelerating each quarter and record profitability.

• Growth was driven by acquisitions (notably MBCC, Kwik Bond/Quickbond, and Vinaldom) and improving organic growth, especially in the Americas.

• Integration of MBCC is progressing well, delivering CHF 89 million in synergies in nine months and positively impacting margins and profitability.

• EBITDA increased 13.2% to CHF 1,701.7 million, with margin rising to 19.1% from 17.8% year-over-year.

• Net profit rose 25.3% to CHF 922.6 million, or 10.3% of net sales.

Financial highlights

• Organic growth reached 1% year-to-date, improving each quarter (Q1: 0.2%, Q3: 1.7%).

• Gross margin expanded to 54.7% from 53.1% last year, driven by procurement initiatives and MBCC synergies.

• EBIT increased 13.1% to CHF 1,294.7 million (14.5% of net sales).

• Operating free cash flow for nine months was CHF 849.5 million, supporting further net debt reduction.

• Profit before taxes increased 20.4% to CHF 1,176.0 million.

Outlook and guidance

• 2024 outlook confirmed: sales growth of 6–9% in local currencies and over-proportional EBITDA increase expected.

• 2028 strategic targets for sustainable, profitable growth reaffirmed, with continued focus on margin expansion and growth.

• Management expects positive momentum in Q4 and into 2025, with Americas as the main growth driver, followed by EMEA.