Sika (SIKA) Q4 2023 earnings summary

Executive summary

• Record 2023 net sales of CHF 11,238.6 million, up 14.5% in local currencies; record operating free cash flow of CHF 1,372.7 million and adjusted EBIT margin of 15.0%.

• MBCC integration delivered CHF 41 million of synergies in the first eight months; annual synergy target raised to CHF 180–200 million by 2026.

Financial highlights

• Net sales CHF 11,238.6 million, +7.1% reported and +14.5% in local currencies; organic growth +1.2%, acquisition effect +13.3%, FX effect -7.4%.

• Record EBITDA CHF 2,044.7 million, +4.1%; EBIT excluding M&A one-time costs CHF 1,680.6 million, 15.0% of sales; reported EBIT CHF 1,549.1 million, -1.9%.

• Net profit CHF 1,062.6 million, -8.6%; material margin recovered to 53.6% from 49.4% in 2022.

• Record operating free cash flow CHF 1,372.7 million vs. CHF 865.2 million in 2022, +58.7%.

Outlook and guidance

• 2024 sales growth expected at 6–9% in local currencies, with an over-proportional increase in EBITDA; 2028 strategic targets confirmed.

• 2028 targets include 6–9% annual growth in local currencies, 20–23% EBITDA margin and operating free cash flow above 10% of net sales, once MBCC synergies materialize.

• EMEA priorities include infrastructure, refurbishment, retail and e-commerce, e-mobility, sustainability solutions and digital lead generation.

• Americas growth opportunities include manufacturing investment, sustainable energy, mining, tunneling and EV battery projects; MBCC integration is on track.

• Asia/Pacific outlook cites continued China growth and infrastructure-led opportunities in India and Southeast Asia, alongside manufacturing investment and distribution expansion.