The Sika growth model is synonymous with long-term success and profitable growth. By focusing on market penetration, innovation, expanding emerging markets, and acquisitions – and driven by its strong corporate values – Sika is growing successfully. With the positive development of business, the establishment of one additional national subsidiary, and the commissioning of eleven new factories and four acquisitions, Sika took a further major step forward in the implementation of its strategic targets for 2020.

Target Achievement

The five strategic pillars market penetration, innovation, emerging markets, acquisitions, and values are not only the foundation for growth but they also drive improvements in margins, cash flow, and return on capital. Within the framework of the growth model, various initiatives contribute to the achievement of the strategic targets.

  • Key investments in the accelerated expansion of the supply chain in growth markets, new national subsidiaries and acquisitions drive growth and margins. Since 2015 Sika has invested in 37 new plants, 11 new national subsidiaries and 20 acquisitions – a total of 68 key investments.
  • Investments in R&D lead to the launch of a large number of new products in all target markets every year. Sika spends approximately 3% of sales on R&D annually.
  • Globally organized procurement coordinates purchasing in all regions, resulting in more price efficient sourcing.
  • Focus on pricing with global pricing tools and monthly pricing reporting.
  • Transparent performance management focused on well-defined KPIs.
  • Strict cost management. Fast efficiency measures in countries which are not growing.
  • Operating leverage: Sales growth of 6-8% generates higher margins, as costs increase at a disproportionately lower rate.

Outlook

Continuation of successful growth strategy

  • 6 to 8% sales growth in local currencies (with over-proportional profit increase)
  • With initial consolidation of Parex as of May 23,2019: sales expected to exceedCHF 8 billion
  • Opening of seven to nine new factories
  • Strategy 2023 to be communicated at Capital Markets Day on October 3,2019