Parax acquisition helps Sika hit sales record in H1 2019

Strong single-digit sales growth in first half of 2019 saw Sika hit a new sales record of CHF 3,732.4 million.

Sales increased 9.6% in local currencies, hit by -2% in CHF (7.6%).

The period saw Sika make the largest acquisition in its history - for Parex, a producer of facade mortar, technical mortar, tile adhesives and waterproofing systems. Sika said the company has a particularly strong presence in distribution channels, with representation in 23 countries.

The period also saw three new factories opened (Senegal, Egypt and Qatar), to be backed with the opening of between seven and nine factories of the course of the rest of the year, Sike revealed.

“We are well-positioned in a commercially challenging environment and achieved a strong sales growth of 9.6% in the first half of 2019,” said CEO Paul Schuler. “We are enjoying a significant boost to growth thanks to the Parex acquisition, and are well on track to exceed the sales mark of CHF 8 billion. Our collaboration during the integration process is working outstandingly, and we are exploiting our synergy potential in procurement, logistics, and production. Our joint distribution and cross-selling activities are already revealing the strength of our combined market presence.”

H1 also saw Sika acquire Belarus-based Belinco, a specialist manufacturer of polyurethane (PU) foam systems. In Canada, Sika bought King Packaged Materials Company, a manufacturer of concrete repair systems.

In Asia/Pacific, Sika noted increased expenditure on infrastructure projects by the Chinese government to mitigate the impact of the trade tariff battle with the US.

Sika’s automotive segment grew despite the decline in global car production: “The company is benefiting from the megatrends evident in modern automotive construction, which are dominated by electromobility and lightweight construction. New, lighter platforms and multi-material designs are opening up new avenues of growth potential for Sika.”

For the 2019 financial year, Sika is expecting an increase in sales to more than CHF 8 billion along with double-digit EBIT growth.