Industry News

Sika AG has reported sales at CHF 7.88 billion (€7.3 billion) for 2020, an increase of 3.4% in local currencies compared to the previous year (-2.9% in CHF). The company also achieved strong growth of 5.5% (organic 4.1%) in the final quarter of 2020.

2020 was a year characterised by the deep-rooted challenges caused all around the world by the Covid-19 pandemic. Lockdowns – in many cases prolonged – in a lot of the countries in which Sika AG is active resulted in significant restrictions on construction activity.

However, thanks to its strong market position, and the swift, targeted implementation of measures, Sika was able to record solid sales figures despite the significant repercussions of the global pandemic. Paul Schuler, chief executive officer at Sika, commented: “The 2020 fiscal year was overshadowed by the global coronavirus pandemic, which had a number of serious repercussions for the construction and automotive sectors. Thanks to the strong motivation of our employees, and their pronounced customer focus, we managed to perform successfully in this highly challenging market environment and achieve above average results.”

He continued: “We remain very well positioned in what is still a difficult environment – thanks to our innovative products and solutions, as well as to our employees, who continue to deliver their utmost even in times such as these. On behalf of group management, I would like to thank our global workforce of 25,000 people for the tremendous dedication they have shown and for the unique way they identify with our company.”

Further market share gains in all regions

In an environment characterised by widespread temporary lockdowns, Sika grew more strongly than the market in all regions, with the distribution business posting considerable gains.

The EMEA region (Europe, Middle East, Africa) reported a sales increase in local currencies of 4.4% in 2020 (2019: 11.5%). A strong improvement started to become apparent in the markets in the fourth quarter in particular. The countries that benefited from the biggest recovery were those of southern Europe – Italy, Spain, Portugal and France – as well as the countries in eastern Europe, Scandinavia, the Middle East and Africa. Sales developed in a more stable manner in central European countries – such as Germany, Austria and Switzerland. Growth in the UK continues to be negatively affected by the pandemic.

The Americas region recorded sales growth in local currencies of 1% (2019: 19.3%). Despite the high Covid-19 infection rates recorded in Mexico, Brazil, and the USA, Sika recorded an uptrend in the Americas region in the last quarter of 2020. Although many cities in North America continue to be affected by the pandemic, and construction projects have slowed significantly, the situation in Latin America has seen a substantial improvement. Many countries such as Brazil, Chile, Peru, and Uruguay, have recovered from lockdowns lasting many months or returned to growth in the double-digits.

Growth in the Asia/Pacific region amounted to 12.6% (2019: 35.1%). China in particular has performed impressively over the last months, recording double-digit organic growth rates, and most target markets are back on a clear growth trajectory. The project business in China is now also once again recording double-digit growth rates thanks to infrastructure orders.

Elsewhere, Australia and New Zealand were likewise able to make positive contributions to business development in the region. By contrast, India and a number of countries in the southeast Asia region recovered only slowly from the far-reaching effects of the coronavirus pandemic.