Sika (SIKA) Q4 2024 earnings summary

Executive summary

• Achieved record net sales of CHF 11.76 billion in 2024, up 7.4% in local currency and 4.7% in Swiss francs year-over-year.

• EBITDA reached CHF 2.27 billion (19.3% of sales), up 11%, with net profit up 17.4% to CHF 1.25 billion.

• Diluted EPS increased 16.7% to CHF 7.76; proposed dividend per share up 9.1% to CHF 3.60.

• Outperformed peers in sales and profitability, with strong market share gains and robust employee engagement (86%).

• MBCC integration delivered CHF 125 million in synergies, exceeding guidance, and is now a contributor to group results.

Financial highlights

• Gross/material margin expanded by 90 basis points to 54.5%, driven by procurement initiatives and MBCC synergies.

• Operating free cash flow reached CHF 1.4 billion, supporting deleveraging; net debt/EBITDA reduced to 2.2× from 2.6×.

• Dividend proposed at CHF 3.60 per share, up 9.1%, with a payout ratio of 46.4%.

• Return on capital employed (ROCE) at 14.2%, acquisition-adjusted ROCE at 22.1%.

• EBIT grew 10.6% to CHF 1,713.9 million, 14.6% of net sales.

Outlook and guidance

• 2025 guidance: 3%-6% local currency sales growth, EBITDA margin of 19.5%-19.8%.

• Midterm Strategy 2028 targets reaffirmed: 20%-23% EBITDA margin by 2026-2028, 6-9% annual sales growth, >10% operating free cash flow as % of net sales, and 20-25% ROCE.

• EMEA expected to grow 3%-5%, Americas mid-single digits, Asia Pacific slight single-digit growth; Africa and Middle East as growth engines.

• Price effect expected at 0.5%-1% in 2025.

• MBCC synergies to contribute CHF 35 million in 2025.