Specialty chemicals firm Sika's sales jump on expansion, post-COVID recovery
Reuters
Published Jul 21, 2022 11:11PM ET
Updated Jul 21, 2022 11:35PM ET
(Reuters) -Swiss chemicals maker Sika AG reported an 18% jump in its first-half sales on Friday, supported by its bigger production footprint and a post-pandemic recovery in the construction sector.
The company, whose chemical additives strengthen and waterproof concrete, said sales came in at 5.30 billion francs ($5.47 billion) for the six months to the end of June, compared with 4.45 billion francs in the year-ago period.
Sales in local currencies rose 19.5%.
"The market conditions have become more challenging for us as well," Chief Executive Officer Thomas Hasler said in a statement.
"The current challenges will remain in the second half of 2022, but I am confident that we can meet our targets for
2022, thanks to our dedicated employees."
Operating profit increased 22.7% to 841.9 million francs, while net profit after taxes increased 21% to 598.8 million francs, Sika said.
During the April to June period, Sika expanded its production of concrete admixtures in the United States, and doubled its production capacity in Bolivia.
Sika confirmed its annual sales forecast of crossing 10 billion francs for the first time in 2022, driven by a more than 10% sales jump in local currencies.
It said it was still aiming for its operating profit to increase more quickly than its local currency sales, and expected to complete its 5.5 billion franc acquisition of MBCC Group, the former BASF Construction Chemicals Business, during the second half of the year.
($1 = 0.9682 Swiss francs)
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Written By: Reuters
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