RECORD YEAR FOR SIKA: GROWTH TARGETS EXCEEDED IN 2014
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Sika AG /
RECORD YEAR FOR SIKA: GROWTH TARGETS EXCEEDED IN 2014
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* 13.0% sales growth (8.3% in Swiss francs) to CHF 5,571.3 million
* Record sales in all regions
* EBIT up 21% to CHF 633.2 million
* 28% increase in net profit to CHF 441.2 million
In the 2014 financial year, Sika continued on its successful growth and achieved
the best result in the company's history. Sales reached record levels in all
regions and all relevant growth targets for 2014 were exceeded. High growth
momentum and disciplined cost management led to new record figures of CHF 633.2
million (+21.0%) for the operating result and CHF 441.2 million (+28.0%) for net
profit.
CEO Jan Jenisch: "Our record year in 2014 is the result of our strategic
continuity and the expertise and commitment of our 16,895 employees. Their
energy, ideas and active embodiment of the Sika Spirit have taken Sika to the
next level of performance. On behalf of Group Management, I wish to thank them
all for their hard work and loyalty over the past year."
REGIONS REPORTING RECORD SALES
Sika significantly exceeded its growth targets for full year 2014. It increased
sales by 13% (in local currencies) to CHF 5,571.3 million. All regions
contributed to this growth and set new sales records. The negative currency
effect for the full year was 4.7%. Sales in Swiss francs increased by 8.3% after
adjustment for currency effects.
Sales in the region EMEA (Europe, Middle East, Africa) experienced an increase
of 13.3%. Visible growth drivers in the Middle East and Africa and the moderate
recovery seen in the southern European markets had a positive impact on the
region's development. North America recorded a 7.9% increase in sales.
Construction projects put on hold in recent years are now being carried out. The
region Asia/Pacific witnessed a 12.9% increase in sales, breaking the CHF 1
billion barrier for the first time. At 16.0%, sales growth remained consistently
high in Latin America in 2014. In a demanding business environment, Sika
benefited from its strong market presence.
SUCCESSFUL IMPLEMENTATION OF STRATEGY 2018
Strategy 2018 is delivering results in excess of Sika's targets and
expectations. Its core features are the accelerated development of growth
markets, investments in new factories and the launch of new products. A key
growth driver in the year under review was the high-margin mortar business,
which recorded sales growth of 31%. The strategy is implemented by results-
driven employees who are ready to take responsibility and whose main priority is
the customer.
8 NEW FACTORIES AND 70 NEW PATENTS
Accelerated development and expansion in the emerging markets continued in
2014. New factories were opened in Brazil, Mexico, Indonesia, Singapore, India
and Serbia. In the US, two new production facilities were commissioned in
Atlanta and Denver.
The founding of six new international subsidiaries in Sri Lanka, Bosnia-
Herzegovina, Albania, Mozambique, Ivory Coast and Nigeria has created a basis
for tapping additional markets.
The 873 employees working in R&D are the main drivers of new product
developments and Sika's innovative strength. In the 2014 financial year, 70 new
patent applications were filed, and a large number of new products were launched
in all key target markets.
ABOVE-AVERAGE PROFIT GROWTH
The high growth momentum translated into an above-average increase in operating
result and net profit. The gross result was increased to 53.0% (2013: 52.4%).
Personnel expenses and other operating expenses rose less strongly than in the
previous year. EBIT and net profit reached new record levels. The operating
profit was 21.0% higher at CHF 633.2 million (2013: CHF 523.5 million). The EBIT
margin was 11.4% (2013: 10.2%). Sika improved its consolidated net profit by
28.0% to CHF 441.2 million (2013: CHF 344.7 million).
IMPROVED BALANCE SHEET FIGURES
At 17.8%, net working capital as a percentage of net sales was held at a
consistently low level in 2014 (2013: 17.4%). Operating free cash flow came to
CHF 417.5 million in the year under review (2013: CHF 432.7 million). Sika held
cash and cash equivalents of CHF 898.8 million at year-end (2013: CHF 1,028.3
million). Net debt was reduced to CHF 82.5 million (2013: CHF 271.4 million);
the equity ratio now stands at 49.5% (2013: 45.1%).
ENSURING THAT THE SIKA SUCCESS STORY CONTINUES
On December 8, 2014, Sika stated its position on the hostile takeover bid by
Saint-Gobain, and shortly afterwards presented concrete proposals for ensuring
that the Sika success story continues. The Board of Directors and Group
Management reject the change of control in the proposed form. They will continue
to act in the interests of Sika and its stakeholders, and, in the light of this
background, are open to constructive talks with all the parties involved. The
goal is to continue to move Sika's successful growth strategy forward unimpeded
and thus secure the company's future.
BOARD OF DIRECTORS PROPOSES PAYMENT OF 26% HIGHER DIVIDEND
At the Annual General Meeting, the Board of Directors will propose to the
shareholders an increase in the dividend to CHF 72.00 per bearer share (2013:
CHF 57.00, +26%) and CHF 12.00 per registered share (2013: CHF 9.50, +26%).
OUTLOOK FOR 2015: CONTINUED GROWTH
Sika is determined to continue the expansion in growth markets with seven to
nine new factories. Sales growth is expected to be 6 to 8%, at constant exchange
rates and margins are expected to be on the level of 2014. An uncertainty
represents the unknown outcome of the hostile takeover attempt by Saint-Gobain.
KEY FIGURES 2014
+-----------------------------------+---------+-------+---------+-------+------+
| | as % of| | as % of| |Change|
|in CHF mn |net sales| 2013|net sales| 2014| in %|
+-----------------------------------+---------+-------+---------+-------+------+
|Net sales | |5,142.2| |5,571.3| 8.3|
+-----------------------------------+---------+-------+---------+-------+------+
|Gross result | 52.4|2,695.6| 53.0|2,951.3| 9.5|
+-----------------------------------+---------+-------+---------+-------+------+
|Operating profit before | | | | | |
|depreciation (EBITDA) | 13.1| 675.9| 14.3| 798.3| 18.1|
+-----------------------------------+---------+-------+---------+-------+------+
|Operating profit (EBIT) | 10.2| 523.5| 11.4| 633.2| 21.0|
+-----------------------------------+---------+-------+---------+-------+------+
|Net profit | 6.7| 344.7| 7.9| 441.2| 28.0|
+-----------------------------------+---------+-------+---------+-------+------+
|Net profit per share (EPS) in CHF | | 135.27| | 173.19| 28.0|
+-----------------------------------+---------+-------+---------+-------+------+
|Cash flow from operating activities| 11.2| 574.0| 10.0| 554.4| -3.4|
+-----------------------------------+---------+-------+---------+-------+------+
|Operating free cash flow | 8.4| 432.7| 7.5| 417.5| -3.5|
+-----------------------------------+---------+-------+---------+-------+------+
|Balance sheet total | |4,735.9| |4,817.9| 1.7|
+-----------------------------------+---------+-------+---------+-------+------+
|Shareholders' equity | |2,136.2| |2,383.3| 11.6|
+-----------------------------------+---------+-------+---------+-------+------+
|Equity ratio in % | | 45.1| | 49.5| |
+-----------------------------------+---------+-------+---------+-------+------+
|Net working capital | 17.4| 893.8| 17.8| 991.9| 11.0|
+-----------------------------------+---------+-------+---------+-------+------+
|ROCE in % | | 21.0| | 23.3| |
+-----------------------------------+---------+-------+---------+-------+------+
|Number of employees | | 16,293| | 16,895| 3.7|
+-----------------------------------+---------+-------+---------+-------+------+
The annual report and the presentation given at the media conference and
investor & analyst conference on the 2014 financial year can be downloaded from
www.sika.com.
Link to Annual Report:
http://annualreport.sika.com
Link to presentation/webcast of the media conference on February 27, 2015, 9.00
a.m. and to the investor and analyst conference on the same day at 12.00 p.m.
www.sika.com/presentations
FINANCIAL CALENDAR
Net sales first quarter 2015 Tuesday, April 14, 2015
47th Annual General Meeting Tuesday, April 14, 2015
Half-year report 2015 Friday, July 24, 2015
Result first nine months 2015 Thursday, October 29, 2015
Net sales 2015 Tuesday, January 12, 2016
Media conference/analyst presentation Friday, February 26, 2016
on full-year results 2015
DATE February 27, 2015 CONTACT Dominik Slappnig
Corporate Communications &
SIKA AG Zugerstrasse 50 Investor Relations
6341 Baar, Switzerland TELEPHONE +41 58 436 68 21
www.sika.com E-MAIL slappnig.dominik(at)ch.sika.com
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 the motor vehicle
industry. Sika has subsidiaries in 90 countries around the world and
manufactures in over 160 factories. Its approximately 17,000 employees generated
annual sales of CHF 5.6 billion in 2014.
The media release can be downloaded from the following link:
Media Release:
http://hugin.info/100359/R/1897898/673765.pdf
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Source: Sika AG via GlobeNewswire
[HUG#1897898]
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Datum: 27.02.2015 - 05:00 Uhr
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