SIKA ACHIEVES RECORD RESULTS IN 2016 - STRATEGIC TARGETS RAISED
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Sika AG /
SIKA ACHIEVES RECORD RESULTS IN 2016 - STRATEGIC TARGETS RAISED
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The issuer is solely responsible for the content of this announcement.
* Record results for sales, earnings and operating free cash flow
* Sales of CHF 5,747.7 million achieved (+5.5% in local currencies)
* Net profit increased to CHF 566.6 million (+21.8%)
* Growth in all regions
* 9 new factories opened, 4 national subsidiaries established, 4 acquisitions
* Strategic targets for 2020 raised
The Sika success story continued in 2016, another record year. In local
currencies, sales increased by 5.5% to CHF 5,747.7 million. Growth momentum
coupled with disciplined cost management led to new record figures of CHF 795.3
million (+18.1%) for the operating profit and CHF 566.6 million (+21.8%) for net
profit. 17 key investments made in the period under review will drive future
growth further forward. Since the targets for Strategy 2018 have been reached
ahead of schedule, they are once again being raised.
Jan Jenisch, CEO: "We continued our growth strategy with great success in the
2016 business year, once again increasing both sales and earnings. Operating
profit, net profit, and operating free cash flow reached new records. By opening
nine new factories, establishing four more national subsidiaries and acquiring
four companies, we have laid the foundations for ongoing future growth. These
17 key investments, our well-filled product pipeline and our strong sales
organization give us reason to look to the future with optimism. My thanks go to
our global management team and our 17,419 employees, whose unfailing dedication
and tremendous commitment have brought us another record year."
All regions managed to lift sales and gain further market share. Strong, above-
average growth rates were recorded in the USA, Mexico, the UK, Africa, Southeast
Asia, Australia and the automotive segment. In cumulative terms and in local
currencies, sales were up 5.5%. The strength of the Swiss franc led to
conversion effects of -0.8%, and thus to a 4.7% increase in sales in Swiss-franc
terms to CHF 5,747.7 million.
RECORD PROFIT ACHIEVED
The growth momentum produced disproportionately high increases in operating
profit and net profit. The continual margin improvement for the 20th consecutive
quarter and sustained cost management were the key positive drivers. As a
result, Sika posted record EBIT (CHF 795.3 million, +18.1%) and net profit (CHF
566.6 million, +21.8%) for the 2016 business year. Operating free cash flow
totaled CHF 586.5 million (+29.9%).
GROWTH IN ALL REGIONS
Sales in the EMEA region (Europe, Middle East, Africa) rose by 4.6% in local
currencies. The core markets Germany, France, Spain and Italy achieved good
growth rates. Strong above-average growth was seen in the UK, Russia, Eastern
Europe and Africa.
Sales in the North America region rose by 7.8% in local currencies. This is due
in particular to the accelerated expansion of the supply chain and the
investments in the sales force in fast-growing metropolitan areas.
The Latin America region recorded a 5.1% sales increase in local currencies.
Mexico, Argentina and Chile all developed strongly. By contrast, the continuing
economic crisis in Brazil and significant falls in the value of some local
currencies led to a downturn in business activity in several countries in the
region.
Growth in the Asia/Pacific region was reported at 3.6% in local currencies. The
extremely dynamic performance of the markets in Southeast Asia and the Pacific
area translated into substantial sales gains. Sika also posted stable second-
half growth rates in China.
17 KEY INVESTMENTS AS GROWTH DRIVERS
The accelerated expansion into growth markets continued in 2016 as well, with a
total of 17 key investments in nine new factories, four additional national
subsidiaries, and four acquisitions.
In the EMEA region a new concrete admixture plant was opened in the Ethiopian
capital Addis Ababa, and a mortar factory came on stream in Kyroni, near Athens.
New national subsidiaries were established in Kuwait, Cameroon and Djibouti.
With the aim of generating momentum for future growth, three acquisitions were
made in the North America region: L.M. Scofield, a leading producer of color
additives for ready-mix concrete, and FRC Industries, a manufacturer of fibers
for concrete, both joined the Group. The Rmax acquisition enables the expansion
of the portfolio for building envelope, wall and roofing insulation
technologies.
Investments in Latin America included a new plant for mortar products in
Guayaquil, Ecuador, an automotive factory for adhesives and acoustic solutions
in São Paulo, Brazil, as well as the establishment of a new national subsidiary
in Nicaragua in the capital Managua.
In the Asia/Pacific region, leading mortar producer Ronacrete Ltd. in Hong Kong
was acquired. New factories were also opened in Perth, Australia, in Saraburi,
Thailand, in Phnom Penh, Cambodia, and in Yangon, Myanmar.
72 NEW PATENTS
896 Sika employees in R&D drive our innovative strength, many of them working on
basic research and the development of new products at the 20 Global Technology
Centers. In the 2016 financial year, 72 new patent applications were filed, and
a large number of new products were launched in all target markets.
GROWTH STRATEGY CONFIRMED - 2020 TARGETS RAISED
Since the targets of Strategy 2018 had been achieved two years early, Sika's
strategic goals were reviewed in the second half of 2016 in conjunction with
senior managers worldwide. The Board of Directors subsequently reaffirmed the
growth model and raised the targets. Sika is now aiming for an EBIT margin of
14-16% (previously 12-14%) and operating free cash flow greater than 10%
(previously more than 8%). The aim is to achieve a return on capital employed in
excess of 25%. By 2020, 30 new factories are to be commissioned and 8 new
national subsidiaries established. The annual sales growth target remains at
6-8%. Sika intends to increase EBIT to more than
CHF 1 billion by 2020.
POSITION OF THE BOARD OF DIRECTORS UPHELD BY THE COURT
In its decision of October 27, 2016, the Cantonal Court Zug denied all requests
of Schenker-Winkler Holding AG (SWH). The Court held that the share transfer
restriction ("Vinkulierung", art. 4 of Sika's articles of association) applies
to the sale of the Sika shares held by SWH to Saint-Gobain. This clear decision
by the court of first instance reinforces the position of the independent
members of the Board of Directors and legitimizes Sika's actions over the last
two years.
DIVIDEND INCREASE OF 31% PROPOSED
At the Annual General Meeting, the Board of Directors will propose to
shareholders a 31% increase in the dividend to CHF 102.00 per bearer share
(2015: CHF 78.00) and CHF 17.00 per registered share (2015: CHF 13.00).
OUTLOOK FOR 2017: CONTINUED GROWTH, HIGHER PROFIT
By opening nine new factories, establishing four more national subsidiaries and
acquiring four companies, Sika laid the foundations for future growth in 2016.
These 17 key investments, the well-filled product pipeline and the strong sales
organization give the Group reason to look to the future with optimism.
The goal for the 2017 business year is to continue the growth strategy,
increasing sales by 6-8% to an initial figure of CHF 6 billion, opening 8 new
factories, and establishing 3 national subsidiaries. EBIT and net profit should
continue to increase at a disproportionately high rate.
KEY FIGURES 2016
+------------------------------+---------+-------+---------+-------+-----------+
| | as % of| | as % of| | |
|In CHF mn |net sales| 2015|net sales| 2016|Change in %|
+------------------------------+---------+-------+---------+-------+-----------+
|Net sales | |5'489.2| |5'747.7| 4.7|
+------------------------------+---------+-------+---------+-------+-----------+
|Gross result | 54.1|2'970.8| 55.3|3'181.1| 7.1|
+------------------------------+---------+-------+---------+-------+-----------+
|Operating profit before | | | | | |
|depreciation (EBITDA) | 15.3| 837.3| 16.8| 965.7| 15.3|
+------------------------------+---------+-------+---------+-------+-----------+
|Operating profit (EBIT) | 12.3| 673.3| 13.8| 795.3| 18.1|
+------------------------------+---------+-------+---------+-------+-----------+
|Net profit | 8.5| 465.1| 9.9| 566.6| 21.8|
+------------------------------+---------+-------+---------+-------+-----------+
|Net profit per share (EPS) in | | | | | |
|CHF | | 181.37| | 221.81| 22.3|
+------------------------------+---------+-------+---------+-------+-----------+
|Cash flow from operating | | | | | |
|activities | 10.7| 585.8| 12.8| 735.7| 25.6|
+------------------------------+---------+-------+---------+-------+-----------+
|Operating free cash flow | 8.2| 451.5| 10.2| 586.5| 29.9|
+------------------------------+---------+-------+---------+-------+-----------+
|Balance sheet total | |4'923.8| |5'099.2| 3.6|
+------------------------------+---------+-------+---------+-------+-----------+
|Shareholders' equity | |2'552.1| |2'947.7| |
+------------------------------+---------+-------+---------+-------+-----------+
|Equity ratio in % | | 51.8| | 57.8| |
+------------------------------+---------+-------+---------+-------+-----------+
|Net working capital | 18.6|1'018.3| 18.4|1'056.9| |
+------------------------------+---------+-------+---------+-------+-----------+
|ROCE in % | | 24.3| | 28.7| |
+------------------------------+---------+-------+---------+-------+-----------+
|Number of employees | | 17'281| | 17'419| 0.8|
+------------------------------+---------+-------+---------+-------+-----------+
The Annual Report and the presentation given at the media conference and
investor/analyst presentation on the 2016 financial year can be downloaded from
www.sika.com.
Link to Annual Report: www.sika.com/annualreport
Link to presentation/webcast of the media conference on February 24, 2017, 9.00
a.m. and to the investor/analyst presentation on the same day at 11.30 a.m.:
www.sika.com/presentations
FINANCIAL CALENDAR
Net sales first quarter 2017 Tuesday, April 11, 2017
49th Annual General Meeting Tuesday, April 11, 2017
Dividend payment Wednesday, April 19, 2017
Half-year report 2017 Thursday, July 27, 2017
Result first nine months 2017 Thursday, October 26, 2017
Net sales 2017 Tuesday, January 9, 2018
Media conference/analyst presentation Friday, February 23, 2018
on full-year result 2017
CONTACT
Dominik Slappnig
Corporate Communications and
Investor Relations
+41 58 436 68 21
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 automotive industry. Sika
has subsidiaries in 97 countries around the world and manufactures in over 190
factories. Its more than 17,000 employees generated annual sales of CHF 5.75
billion in 2016.
The media release can be downloaded from the following link:
Media Release:
http://hugin.info/100359/R/2081682/784197.pdf
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Sika AG via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 24.02.2017 - 05:00 Uhr
Sprache: Deutsch
News-ID 526305
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