In a year of high inflation, rising interest rates, and sharp currency depreciations, Sika was able to achieve record sales, amounting to CHF 11.24 billion (USD 13 billion) in 2023, equating to a rise of 7.1% in CHF. Almost all currencies depreciated considerably against the Swiss franc, which led to a negative currency effect of -7.4%. One key growth driver in the past fiscal year was the acquisition and successful integration of MBCC and the systematic merger of its business activities. However, the negative currency effect also played a major role in the MBCC business that was consolidated as of the beginning of May. Sika is expecting annual synergies of CHF 180–200 million following the acquisition.
"Sika has once again proved its resilience over the past twelve months. Thanks to our well-functioning business model, our high level of innovation, and the strong commitment of our 33,000 employees around the world, we have continued to grow substantially and gained market share in what has been a challenging year. We are benefiting from high customer demand from the major growth trends such as sustainability, urbanization, and automation. With our Strategy 2028, our geographical footprint, and our leading technologies, we are ideally positioned to continue to achieve sustainable growth in the coming years and create added value for all our stakeholders," said Thomas Hasler, CEO, Sika.
In general, the growth trends of the first nine months continued in the final quarter of fiscal 2023. All regions performed well and contributed to Sika’s further growth and the systematic expansion of market shares. In 2023, Sika experienced positive organic growth, compared to a market that was characterized by a negative organic development.
Sika made significant investments in the Europe, Middle East, and Africa (EMEA) region. This includes a 30% stake in Concria Oy, a Finnish start-up developing innovative solutions for cement floors that provide a wide range of advantages for construction companies, architects, and building owners. Sika’s global network and the complementary product portfolio provides an attractive growth platform for both companies.
Additionally, Sika commissioned a new production facility for shotcrete accelerators in Kirchberg, Switzerland, investing in the expansion of manufacturing capacities in its home market. This high-performance technology is used in tunneling, as well as in excavation stabilization.
In July of last year, Sika completed the takeover of Thiessen Team USA, a manufacturer of shotcrete and mortar products for the U.S. mining sector, which supplies the growing electro-mobility industry with critical minerals. The takeover offers significant cross-selling potential and strengthens Sika’s position in the U.S. mining sector.
In June, Sika opened a new factory in Kharagpur in the east of India, expanding its production capacity in this densely populated country that represents an important market for the future. The factory will produce mortar products, concrete admixtures, and shotcrete accelerators for customers in the West Bengal region, which is home to more than 100 million inhabitants.
In another strategic move, Sika opened a state-of-the-art Technology Center in Suzhou, China, in the fourth quarter. The primary focus is on the development of sustainable and high-performance technologies with which Sika makes a key contribution to the transformation of the construction and automotive industries. In the future, the new Technology Center – the second-largest in the Sika Group – will be used to focus even more on developing products and solutions tailored for the local market.
Sika is continually expanding its range of innovative solutions for battery systems. Including heat-conducting adhesives for the latest generation of battery-driven electric vehicles. Sika received a record number of new orders in the automotive business in 2023. The supply orders acquired will generate sales in the medium term and will ensure that the automotive business continues to perform well.
To learn more, visit www.sika.com and www.mbcc-group.com.