GlobeNewswire

DYNAMIC GROWTH – NEW SALES RECORD IN FIRST QUARTER – ANNUAL TARGET RAISED

Share

DYNAMIC GROWTH – NEW SALES RECORD IN FIRST QUARTER – ANNUAL TARGET RAISED

  • Sales increase of 12.6% in local currencies
  • Q1 sales of CHF 1,998.6 million (+10.2% in CHF)
  • Negative currency effect of –2.4%
  • Acquisition of Kreps (Russia), DriTac (USA), and BR Massa (Brazil)
  • Outlook for 2021 fiscal year
    • Double-digit sales growth in local currencies (previously: local currency growth of 6%–8%)
    • Over-proportional increase in EBIT, EBIT margin to reach 15% for the first time
  • Confirmation of 2023 strategic targets for sustainable, profitable growth

Despite the ongoing COVID-19 pandemic, Sika has had a dynamic start to the 2021 fiscal year, continuing its growth trajectory in the first quarter with a new sales record of CHF 1,998.6 million. This equates to an increase of 12.6% in local currencies. Sales growth in Swiss francs amounted to 10.2%, which includes a negative currency effect of –2.4%. The acquisition effect was 1.5%. Organic growth in the first quarter amounted to 11.1%.

Paul Schuler, Chief Executive Officer: “As the new year got underway, we were able to seamlessly build on our strong performance in the fourth quarter of last year. We made targeted use of our growth momentum and further expanded market shares in the majority of our markets. Both in the project business and the distribution business, we are benefiting from strong customer demand for our high-quality, innovative, and sustainable solutions. These not only help our customers master their projects and challenges, but also contribute to greater sustainability in the construction sector and to environmentally-friendly mobility. The COVID-19 pandemic will be with us in 2021 too. After a year’s experience of doing business in this environment, it is clear that we are on the right course with the implementation of numerous digital initiatives and are benefiting from the added value these provide, as well as from the strength of our customer relationships.”

GROWTH IN ALL REGIONS – DOUBLE-DIGIT GROWTH IN EMEA AND ASIA/PACIFIC
The first quarter of the 2021 fiscal year remained affected by the COVID-19 pandemic, and by logistical challenges in particular. Thanks to its strong market position and the rapid, targeted implementation of growth initiatives, Sika was able to achieve record results in all regions.

In the first quarter of 2021, the EMEA region recorded a sales increase in local currency of 13.2% (previous year: 13.3%). Business developed well in Germany, Austria, and Switzerland (the “DACH” area), the Nordic countries, Eastern Europe, and the Middle East. A boost in growth was witnessed in the countries of southern Europe, with Italy, France, and the UK, as well as in Africa.

In the period under review, Sika acquired Kreps LLC, a leading manufacturer of mortar products in Russia, thereby further expanding both its existing product portfolio and its geographical presence in this market.

The Americas region recorded growth in local currencies of 6.2% (previous year: 23.0%). In the Americas region, Sika saw a clear uptrend, despite the high COVID-19 infection rates recorded in Mexico, Brazil, and the USA. While many large urban centers in North America continue to be affected by the pandemic and construction projects are being delayed, the situation in Latin America has improved markedly.

In the first quarter of 2021, Sika acquired the flooring adhesives business segment of DriTac, a US-based company with a particularly strong market position in the area of adhesive bonding for flooring systems. Furthermore, BR Massa, a manufacturer of mortar products in Brazil was brought into the Sika Group. Thanks to this acquisition, Sika will improve its position in one of the leading economic regions of Brazil, as well as expanding its production capacity.

Sales in local currencies in the Asia/Pacific region increased by 25.8% (previous year: 29.8%), with China in particular enjoying yet another surge in growth momentum with double-digit organic growth rates. Australia and India were also able to contribute to the positive business development of this region. By contrast, the countries of the Southeast Asia region have been recovering only slowly from the far-reaching effects of the pandemic.

In the Global Business segment, Sika achieved growth in local currencies of 2.7% (previous year: –7.1%). In the first quarter of the current financial year, the automotive industry experienced major bottlenecks in the electronic parts supply chain. Not until March were vehicle production rates once again rising significantly in all regions. For the year 2021, the automotive industry is expected to grow by 10%. Sika is expecting long-term growth stimuli from the megatrends evident in modern automotive construction, which will continue to be dominated by electromobility and lightweight construction.

CONTINUATION OF SUCCESSFUL GROWTH STRATEGY – ANNUAL TARGET RAISED
Despite the coronavirus crisis and its repercussions for operating results, Sika is confirming its 2023 strategic targets. The company is still clearly aligned for long-term success and profitable growth. With its focus on the six strategic pillars – market penetration, innovation, operational efficiency, acquisitions, strong corporate values, and sustainability – Sika is seeking to grow by 6%–8% a year in local currencies up to 2023. From 2021, the company is aiming to increase its EBIT margin to 15%–18%. Projects in the areas of operations, logistics, procurement, and product formulation should result in an annual improvement in operating costs equivalent to 0.5% of sales.

For the 2021 fiscal year, Sika is expecting double-digit sales growth in local currencies (previously: sales growth in local currencies of 6%–8%) and an over-proportional increase in EBIT. The EBIT margin should for the first time reach 15%.

LIVE INTERNET BROADCAST OF THE ANNUAL GENERAL MEETING
The Annual General Meeting of Sika AG will take place at 4 p.m. today, and will be broadcast live. In accordance with the Federal Council’s Ordinance to combat coronavirus, it is once again not possible for shareholders to attend the Annual General Meeting in person. Instead, they can cast their vote through the independent proxy. Sika is also giving all its shareholders the opportunity to directly ask questions verbally during the meeting via an online platform. As part of the Annual General Meeting, Chief Executive Officer Paul Schuler will comment on business development in the first quarter of 2021 as well as the outlook.

NET SALES IN THE FIRST THREE MONTHS OF 2021

In CHF mn1.1.2020 - 31.3.20201.1.2021 - 31.3.2021Year-on-year change
(+/- in %)
In CHF

In local currencies1Currency effectAcquisition effect2Organic
growth3
By region4
EMEA810.7914.712.813.1-0.33.59.6
Americas485.7481.0-1.06.2-7.20.06.2
Asia/Pacific338.2422.825.025.8-0.80.025.8
Global Business179.0179.10.12.7-2.60.02.7
Net sales 1,813.61,997.610.112.6-2.51.511.1
Products for the construction industry1,428.91,591.811.413.9-2.52.011.9
Products for industrial manufacturing384.7405.85.57.8-2.30.07.8
  1. Growth in local currencies including acquisitions.
  2. Share of sales of acquired companies not including post-combination growth. The sales growth of the acquired companies since initial consolidation is included in organic growth.
  3. Growth adjusted for acquisition and currency effect. The sales growth of the acquired companies since initial consolidation is included in organic growth.
  4. The Advanced Resin business has been reallocated from the Global Business segment to the geographical regions.
    Link to restated 2020 figures.

FINANCIAL CALENDAR

Half-Year Report 2021Thursday, July 22, 2021
Results first nine months 2021Friday, October 22, 2021
Net sales 2021Tuesday, January 11, 2022
Media conference/analyst presentation on 2021 full-year resultsFriday, February 18, 2022
Net sales first quarter 2022Tuesday, April 12, 2022
54th Annual General MeetingTuesday, April 12, 2022

CONTACT
Dominik Slappnig
Corporate Communications &
Investor Relations
+41 58 436 68 21
slappnig.dominik@ch.sika.com

SIKA AG CORPORATE PROFILE
Sika is a specialty chemicals company with a leading position in the development and production of systems and products for bonding, sealing, damping, reinforcing, and protecting in the building sector and motor vehicle industry. Sika has subsidiaries in 100 countries around the world and manufactures in over 300 factories. Its 25,000 employees generated annual sales of CHF 7.88 billion in 2020.

The media release can be downloaded from the following link:
Media Release

To view this piece of content from www.globenewswire.com, please give your consent at the top of this page.
To view this piece of content from ml-eu.globenewswire.com, please give your consent at the top of this page.

About GlobeNewswire

GlobeNewswire
GlobeNewswire
One Liberty Plaza - 165 Broadway
NY 10006 New York

https://globenewswire.com

GlobeNewswire is one of the world's largest newswire distribution networks, specializing in the delivery of corporate press releases financial disclosures and multimedia content to the media, investment community, individual investors and the general public.

Subscribe to releases from GlobeNewswire

Subscribe to all the latest releases from GlobeNewswire by registering your e-mail address below. You can unsubscribe at any time.

Latest releases from GlobeNewswire

Mandalay Resources Provides Target Release Date for First Quarter 2021 Financial Results and Conference Call10.5.2021 23:00:00 CEST | Press release

TORONTO, May 10, 2021 (GLOBE NEWSWIRE) -- Mandalay Resources Corporation (“Mandalay” or “the Company”) (TSX: MND, OTCQB: MNDJF) announces that its first quarter 2021 financial results will be released after market close on May 12, 2021, followed by a conference call with Dominic Duffy, President and Chief Executive Officer of Mandalay, for investors and analysts on May 13, 2021, at 8:00 AM (Toronto time). Analysts and interested investors are invited to participate using the following dial-in numbers: Participant Number:(201) 689-8341Participant Number (Toll free):(877) 407-8289Conference ID:13719805 A replay of the conference call will be available until 11:59 PM (Toronto time), May 27, 2021, and can be accessed using the following dial-in number: Encore Toll Free Dial-in Number:(877) 660-6853Encore ID:13719805 For Further Information: Dominic Duffy President and Chief Executive Officer Edison Nguyen Manager, Analytics and Investor Relations Contact: (647) 260-1566 About Mandalay Reso

Industrivärden divests its shareholding in SSAB for SEK 2,019 million10.5.2021 23:00:00 CEST | Press release

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN OR SOUTH AFRICA OR IN ANY JURISDICTION IN WHICH SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL. PLEASE SEE THE IMPORTANT NOTICE AT THE END OF THIS ANNOUNCEMENT. Industrivärden has today divested its entire holding of 44,334,933 class A shares in SSAB at a price of SEK 45.53 per class A share, corresponding to a total proceeds of SEK 2,019 million. The divestment has been made by means of an accelerated book building process addressed to institutional investors. The divested shares represent 4.3 percent of the capital and 11.8 percent of the votes in SSAB. Commenting on the transaction, Industrivärden’s CEO Helena Stjernholm says: “Industrivärden has been a long-term and committed owner with a significant shareholding in SSAB since 1994. Within the framework of our ownership role, we have actively participated in several important development steps, s

Industrivärden avyttrar sitt aktieinnehav i SSAB för 2.019 mnkr10.5.2021 23:00:00 CEST | Pressemelding

EJ FÖR OFFENTLIGGÖRANDE, PUBLICERING ELLER SPRIDNING, DIREKT ELLER INDIREKT, I ELLER TILL USA, AUSTRALIEN, KANADA, JAPAN ELLER SYDAFRIKA ELLER ANNAN JURISDIKTION DÄR SÅDAN DISTRIBUTION ELLER PUBLICERING SKULLE VARA OLAGLIG. SE AVSNITTET VIKTIG INFORMATION I SLUTET AV DETTA PRESSMEDDELANDE. Industrivärden har idag avyttrat hela sitt aktieinnehav i SSAB om 44 334 933 A-aktier för 45,53 kronor per A-aktie, motsvarande en total försäljningslikvid om 2.019 mnkr. Avyttringen har skett genom en så kallad accelererad bookbuilding-process riktad till institutionella investerare. De avyttrade aktierna motsvarar 4,3 procent av kapitalet och 11,8 procent av röstetalet i SSAB. I en kommentar till försäljningen säger Industrivärdens vd, Helena Stjernholm: ”Industrivärden har varit en långsiktig och engagerad ägare med ett betydande aktieinnehav i SSAB sedan 1994. Inom ramen för vår ägarroll har vi aktivt deltagit i flera viktiga utvecklingssteg, såsom till exempel inriktningen mot produktområden med

CrossAmerica Partners LP Reports First Quarter 2021 Results10.5.2021 22:15:00 CEST | Press release

Allentown, PA, May 10, 2021 (GLOBE NEWSWIRE) -- CrossAmerica Partners LP Reports First Quarter 2021 Results Reported First Quarter 2021 Operating Loss of $0.9 million and Net Loss of $4.0 million compared to Operating Income of $77.4 million and Net Income of $72.1 million for the First Quarter 2020. During the First Quarter 2020, CrossAmerica recorded a gain on sale totaling $70.9 million, primarily driven by the sale of its 17.5% investment in CST Fuel SupplyGenerated First Quarter 2021 Adjusted EBITDA of $20.7 million and Distributable Cash Flow of $15.8 million compared to First Quarter 2020 Adjusted EBITDA of $25.3 million and Distributable Cash Flow of $20.4 millionReported First Quarter 2021 Gross Profit for the Wholesale Segment of $34.9 million compared to $35.1 million of Gross Profit for the First Quarter 2020Distributed 291.8 million wholesale fuel gallons during the First Quarter 2021 at an average wholesale fuel margin per gallon of 7.3 cents compared to 220.6 million who

The largest shareholder of JSC Olainfarm continues to maintain stake in the company10.5.2021 20:34:00 CEST | Press release

JSC Olainfarm has received information from the company Black Duck Invest a.s. registered in the Czech Republic that it has an intention to acquire the shares of JSC Olainfarm owned by Olmafarm Ltd., which makes up 42.56% of the shares of JSC Olainfarm. JSC Olainfarm has not received information that the transaction has taken place. According to the public information, Olmafarm Ltd. has approached the State Police and an investigation has been started. JSC Olainfarm has not been informed about changes in the register of shareholders in connection with the shares of JSC Olainfarm owned by Olmafarm Ltd. The Management Board of JSC Olainfarm actively monitors the situation and will continue to provide information in accordance with the legal requirements. JSC Olainfarm, a part of Olainfarm Group, is one of the leading pharmaceutical companies in the Baltic States offering high quality medicine and chemical pharmaceutical products. The business strategy “FORWARD” highlights the company’s m

Nokia selected by Movistar Chile for commercial 5G network launch10.5.2021 20:00:00 CEST | Press release

Press Release Nokia selected by Movistar Chilefor commercial 5G network launch Movistar Chile’s commercial 5G network to launch with Nokia’s AirScale technology The deal upgrades Telefónica’s 4G and 4G+ network across several Chilean cities; option for a seamless upgrade to 5G services in the future This high-speed mobile technology will be supported by Movistar Chile's fiber optics, which will allow the different mobile antennas deployed in cities to be interconnected May 10, 2021 Espoo, Finland – Nokia has today announced that it has been chosen by Telefónica’s Latin America brand, Movistar Chileto provide equipment from its AirScale portfolio to launch the operator’s 5G network in the country. This milestone deployment will enable 5G services for Movistar customers. In addition, Nokia will upgrade Movistar’s 4G and 4G+ networks to strengthen the critical network backbone across Chile’s key markets. To meet the demands from consumers and businesses for improved speeds and enhanced se

Bel : First quarter 2021 financial information : Sales10.5.2021 18:00:00 CEST | Press release

Suresnes — May 10, 2021 at 6 p.m. Bel First quarter 2021 financial information Sales Organic sales growth up slightly after adjusting for Covid impact in 2020 Q1 2021 sales totaled €840.2 million1, down 7.5% on a published basis. Sales declined 3.6%(2) organically, but grew 0.2% after excluding the Q1 2020 sales spike tied to the Covid-19 pandemic. Amounts are expressed in millions of euros and rounded off to the nearest million. Ratios and variances are calculated based on underlying amounts, not rounded off amounts. Antoine Fievet, Chairman and Chief Executive Office of the Bel Group, said, "I want to thank all of Bel's employees, who mobilized once again this quarter to fight the Covid-19 pandemic and its consequences on our activities and their personal lives. The unprecedented growth that we reported in Q1 2020, buoyed by increased food purchases and stockpiling by consumers around the world, automatically led to a sales decline at the beginning of this year. While our business en