17th October 2022
Daniel Pfund, Senior Financial Analyst
At its investor day last week, Sika’s management reiterated its objective to achieve sales growth in local currencies of more than 15% in 2022. Growth in earnings before interest and taxes, (EBIT) is expected to exceed 15% thanks to operating leverage. This comforting news is welcome in these tumultuous times. Investors were concerned following the decline in gross margin in the first half of the year due to higher raw material costs. But Sika has passed significant price increases (+15% since the beginning of the year), which could more than compensate for the increase in inputs. We will know a little more when the third quarter results are published on 21 October.
Regarding the acquisition of MBCC, Sika confirmed that they had to sell part of this company to comply with the various competition commissions in certain countries (including Switzerland). Sika confirmed that several buyers had already expressed interest, confirming that the sale should not pose any problems.