Bolstered by a late European winter, Sika AG sales picked up momentum in the 4th quarter of 2013. Total sales grew 9.4% in European currencies in the 2013 financial year. Adjusted for exchange rates, sales were 6.5% higher at CHF 5.14 billion. This positive development is largely due to organic growth.
The rapid integration of acquisitions also helped to drive growth momentum. 5.9% of the overall sales increase reported in the 2013 financial year was attributable to organic growth, to which all regions contributed. Acquisition‐related sales growth came to 3.5%.
The strong Swiss franc produced a negative currency effect of 2.9%. This resulted in 6.5% sales growth in Swiss francs. In light of the demanding conditions prevailing in numerous markets, the results achieved bear testimony to the strength and robustness of Sika’s growth strategy.
The region EMEA (Europe, Middle East, Africa) reported 8.5% growth for 2013. This positive trend was driven primarily by organic growth in Eastern Europe, Africa, the Middle East and the UK, as well as by acquisitions.
Business in the region North America picked up considerably toward the end of the year, resulting in a 2.3% increase in sales for 2013. While the residential real estate market recovered, any positive impact on the rest of the construction industry remained modest.
Latin America posted the strongest growth of all regions in 2013. Year‐on‐year, sales were 15.1% higher, with every country and target market recording increases.
With above‐average growth, the region Asia/Pacific also saw sales rise by 12.5%. The OECD countries reported increases in the single‐digit percentage range, while China, India, Indonesia, Thailand, Malaysia and Vietnam all posted double‐digit growth rates.
The accelerated build‐up of business in the emerging markets produced sales growth of 17.2% in local currencies and 11.8% in Swiss francs. The proportion of sales generated by the emerging markets increased to 38% (previous year: 37%).
Through investments in emerging markets, the launch of new products, and the acquired companies, Sika is poised to continue its growth strategy in the current year 2014. That being said, the significant currency movements witnessed in the past few months and the process of integrating the newly acquired companies present a challenge in terms of sales growth and costs items.
Sika AG, is a globally active specialty chemicals company, which has its South African Head Office in Durban, along with branches in all major SA cities.
Sika AG Corporate Profile
Sika AG, located in Baar, Switzerland, is a globally active specialty chemicals company. Sika supplies the building and construction industry as well as manufacturing industries (automotive, bus, truck, rail, solar and wind power plants, facades).
Sika is a leader in processing materials used in sealing, bonding, damping, reinforcing and protecting load-bearing structures. Sika’s product lines feature high-quality concrete admixtures, specialty mortars, sealants and adhesives, damping and reinforcing materials, structural strengthening systems, industrial flooring as well as roofing and waterproofing systems. Worldwide local presence in 80 countries and some 15 200 employees link customers directly to Sika and guarantee the success of all partners. Sika generated annual sales of CHF 4 829 million in 2012.
