Continued Growth and higher Margins
Since the targets for Strategy 2018 have been reached ahead of schedule, the Board of Directors decided in January 2016 to raise them. Sika is now aiming for an EBIT margin of 12-14% (previously over 10%) and an operating free cash flow in excess of 8% (previously over 6%). The company is also aiming to increase its return on capital employed to 25% (previously over 20%) by 2018.
The growth model will be supplemented with investments in six to eight factories each year and the establishment of new national subsidiaries. For the current financial year, currency fluctuations and the general conditions in some markets, primarily China, Brazil and Russia, remain a challenge.
The Group is convinced that it will againbe able to successfully implement the targets for Strategy 2018 in the current year. It is assuming sales growth of 6-8% at constant exchange rates, and slightly higher than average growth in margins.