Sika AG 9M Results Climb, Confirms FY21, FY23 Targets - Quick Facts

Sika AG (SXYAY.PK,SKFOF.PK), a specialty chemicals company, reported Friday that its nine-month net profit increased 36.3 percent to 765.1 million Swiss francs from previous year's 561.5 million francs.

Operating profit or EBIT grew 32.2 percent from last year to 1.05 billion francs, and operating profit margin increased significantly to 15.4 percent from previous year's 13.7 percent.

Operating profit before depreciation or EBITDA grew 24 percent to 1/07 billion francs.

Sales rose 18.2 percent to 6.86 billion francs from 5.81 billion francs a year ago. Sales grew 18.1 percent in local currencies, and organic growth was 16.8 percent. Compared with the same period in 2019, organic growth was at 10.2 percent.

Looking ahead for the 2021 fiscal year, Sika continues to expect sales growth in local currencies of 13 percent-17 percent as well as an over-proportional EBIT increase. The EBIT margin will reach 15 percent for the first time, despite a challenging raw material price development and supply chain restrictions.

Further, Sika confirmed its strategic targets 2023. The company is seeking to grow by 6 percent-8 percent a year in local currencies until 2023. As of 2021, the company is aiming for a higher EBIT margin of 15 percent-18 percent.

Sika also announced certain management changes that are effective as of November 1.

Patricia Heidtman will succeed Frank Hoefflin as a member of Group Management in the newly created position of Chief Innovation and Sustainability Officer.

Hoefflin will assume the newly created position of Head Operations, Quality and EHS. In his new role, he will continue to report directly to the CEO but will step down from Group Management.

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