30th April 2020 -IAM, News
Olivier Aeschlimann, Senior Financial Analyst
Sika’s sales have increased by 15.4% over the first quarter of 2020. However, from mid-march, 30 countries where Sika is active found themselves in lockdown which of course had a negative impact on the company’s operations. Given the volatility of the current backdrop, Sika removed its guidance for 2020. That said, Sika is in a strong financial position and started the year with ha high cash holding of CHF 995 million. On top of that, the Group has 1.25 billion in credit line. Within this context, cash management is key. Non business-critical investments have been postponed and cost structures have been adapted, without jeopardizing long-term growth. Therefore, Sika has confirmed its strategic targets for 2023. By targeting six strategic pillars – market penetration, innovation, operational efficiency, acquisitions, strong corporate values and sustainability- , Sika is seeking to grow by 6 to 8% a year in local currencies by 2023.
