Press Release: SIKA ACHIEVES SALES RECORD OF CHF 8.11 BILLION -- STRONG GROWTH OF 16.3%

SIKA ACHIEVES SALES RECORD OF CHF 8.11 BILLION -- STRONG GROWTH OF 16.3%

-- Sales growth of 16.3% in local currencies to CHF 8.11 billion (+14.4% in

CHF)

-- Growth in all regions

-- Organic growth of 3.3%

-- Growth boosted by acquisitions of Parex, Crevo-Hengxin, King Packaged

Materials, Belineco. Signing of Adeplast.

-- Opening of seven new factories

-- Outlook: double-digit EBIT growth expected for 2019, consistent

implementation of Strategy 2023 for sustainable, profitable growth

Sika records double-digit growth and achieves a new sales record of CHF

8.11 billion in the 2019 business year. This equates to an increase of

16.3% in local currencies, with the acquisition effect accounting for

13.0% and organic growth for 3.3%. Sales growth in CHF amounted to 14.4%

(-1.9% currency effect).

Paul Schuler, Chief Executive Officer: "With strong sales growth of

16.3% we exceeded our sales target for fiscal 2019 with a sales figure

of CHF 8.11 billion. We are also anticipating record figures for the

operating result and profit. We will maintain our positive growth

dynamic over the coming years. With our new Strategy 2023 we are moving

the performance of our organization to the next level, and by

consistently pursuing this strategic path we will be able to further

exploit the business potential of our markets and generate sustainable,

profitable growth. This latest record result was achieved thanks to the

great dedication of our global workforce of more than 24,500 employees

and their identification with Sika -- I would like to thank them all."

The integration of Parex was driven forward in the 2019 business year.

Fully integrated management structures are already established in 20

countries in which Parex is present. Combined business and procurement

activities ensure that existing synergy potential is fully exploited.

The forecasted synergies of CHF 80-100 million will fall in the higher

end of this bandwidth thanks to the successful integration. More than

100 shared projects have already been initiated through cross-selling

activities alone. In China in particular, the company is tapping into a

billion dollar market. Sika solutions are already being sold in more

than 2,000 additional points of sale through shop-in-shop concepts.

GROWTH IN ALL REGIONS

In a challenging market environment, Sika's growth in all regions was

stronger than the market.

The EMEA region (Europe, Middle East, Africa) reported a sales increase

in local currency of 11.5% in 2019 (previous year: 14.2%), and recorded

strong growth with double-digit growth rates in Africa and high

single-digit growth in Eastern Europe. In Belarus, Sika acquired

Belineco, a specialist manufacturer of polyurethane foam systems, while

in Romania it has agreed to acquire Adeplast, a leading manufacturer of

mortar products and thermal insulation solutions. Closing is expected in

the first quarter 2020. Production capacity was expanded in Egypt, Qatar,

Serbia, Senegal, Cameroon and Ethiopia, and new factories opened for

concrete admixtures and mortars.

The Americas region has focused its business activities even more

strongly on the largest markets and urban centers, and generated strong

sales growth of 19.3% (previous year: 12.6%). Growth momentum was

particularly strong in North America. In Latin America political

tensions in countries such as Mexico, Chile and Ecuador are also leaving

their mark on local construction industries. Brazil, Colombia and Peru

are showing strong growth rates. In Canada, the acquisition of King

Packaged Materials in the reporting period brought a market leader in

concrete repair systems into the Group.

Growth in the Asia/Pacific region amounted to 35.1% (previous year:

5.4%), a figure that includes a significant acquisition effect of 30.3%.

The highest growth rates were recorded in the Philippines, India, and in

China. In China, Sika took over Crevo-Hengxin, a manufacturer of silicon

based sealants and adhesives. The newly acquired range of products opens

up cross-selling opportunities in the extended distribution channels.

Furthermore, a new factory in the Bekasi district on the outskirts of

Jakarta commenced operations in Indonesia in the reporting period. Sika

now produces concrete admixtures and mortar products for the local

construction market in three factories.

The Global Business segment recorded a growth rate of 3.0% (previous

year: 29.2%). Sika generated further growth in the automotive area in

2019, despite the global stagnation in the automotive sector and the

sharp decline in production figures. The megatrends in modern automotive

construction, which are dominated by electro-mobility and lightweight

construction, are opening up new avenues with long-term growth potential

for Sika thanks to new, lighter platforms with multi-material designs

and new adhesive technologies, as well as heat management in modern

battery technologies for electric vehicles. Sika has just recently

received the coveted Swiss Technology Award for an innovative new

adhesive technology used in the automotive and transport industry.

OUTLOOK

For the 2019 business year Sika expects double-digit EBIT growth. By

investing in seven new factories and five acquisitions, the Group has

laid the foundations for continued growth. These twelve key investments,

the well-filled product pipeline, and the strong sales organization give

Sika reason to look to the future with optimism.

Strategy 2023, which was unveiled in October, is designed to expand the

company's growth model and align the organization for continued

long-term success and profitable growth. By targeting six key areas --

market penetration, innovation, operational efficiency, acquisitions,

strong corporate values, and sustainability -- Sika is seeking to grow

by 6-8% a year up to 2023. It is aiming for a higher EBIT margin of

15-18% by 2021. Projects in the areas of operations, logistics,

procurement and product formulation will result in an annual improvement

in operating costs equivalent to 0.5% of sales.

KEY DATES

Media conference/analyst presentation Friday, February 21, 2020

on full-year results 2019

Net sales first quarter 2020 Tuesday, April 21, 2020

52(nd) Annual General Meeting Tuesday, April 21, 2020

Half-Year Report 2020 Thursday, July 23, 2020

Results first nine months 2020 Thursday, October 22, 2020

Net sales 2020 Thursday, January 7, 2021

CONTACT

Dominik Slappnig

Corporate Communications &

Investor Relations

+41 58 436 68 21

slappnig.dominik@ch.sika.com

https://www.globenewswire.com/Tracker?data=6yQNl0c_HgG7sHiAAiRUn-gp0gSht1azZGWUB5vlMGGYgXjZ8q_Mks4H-1xO3ZO9HIuSsna92th1J_cAwlQ2FmRvDIV2RrZIbui6_B_SAzjDG2M_6zdsMr0FQhQiTyhk

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 motor

vehicle industry. Sika has subsidiaries in 101 countries around the

world and manufactures in over 300 factories. Sika employs more than

24,500 people and generated sales of CHF 8.1 billion in fiscal 2019.

The media release can be downloaded from the following link:

-- Media Release

https://ml-eu.globenewswire.com/Resource/Download/c3610a64-1e02-48e5-bcd4-2f4221687af5

(END) Dow Jones Newswires

January 08, 2020 23:00 ET (04:00 GMT)