Sika AG Show Robust Growth In 2011
Sika AG, a specialty chemicals company increased sales by 15.5% in local currencies in the 2011 business year, achieving net sales of CHF 4.55 billion. Sika posted double-digit growth in local currencies in all regions except Europe South.
In the 2011 business year, Sika lifted sales by 15.5% in local currencies. This figure includes an acquisition effect of 3.8%. After conversion into Swiss francs, sales therefore rose 3.1% year-on-year to CHF 4.55 billion.
Sika has expanded in all regions and witnessed strong growth in the emerging markets of Asia/Pacific and Latin America. Sika also increased sales in the Region North America, winning additional shares in a fiercely fought market. Europe North reported double-digit growth due to weather conditions and thanks to Germany, Poland and Russia, while Europe South was able to maintain growth in the single-digit range on the back of the markets in France and the UK. Broken down by regions, Sika expanded as follows in 2011 in local currencies: Europe North 11.3%, Europe South 4.2%, North America 21.5%, Latin America 21.0%, IMEA (India, Middle East, Africa) 12.3%, Asia/Pacific 28.1%. The growth seen in North America and Asia/Pacific was significantly bolstered by acquisitions, accounting for 5.1% and 14.0% respectively.
Sika made eight acquisitions in 2011. Taken together, the acquired companies achieved annualized sales of some CHF 240 million in 2010, placing Sika within its strategic target range. Sika usually targets companies for acquisition which provide it with better market access or which possess technologies that it can distribute though its global sales network.
The proportion of sales generated by Sika in the emerging markets is at 36%.
In local currencies, sales of products for the building and construction industry were up by 16.3% in the 2011 business year, with an acquisition effect of 4.2%. Sales of products for industrial manufacturing increased 12.0% in local currencies, including an acquisition effect of 2.3%