The 2020 fiscal year was overshadowed by the COVID-19 pandemic, which presented a number of challenges for Sika. In the majority of the hundred countries in which Sika is active, construction activity was severely restricted for certain periods of time. Thanks to its outstanding market position and swift, targeted implementation of measures, Sika was able to record solid sales figures, growing more strongly than the market. Furthermore, the distribution business expanded in all regions.
EMEA (Europe, Middle East, Africa)
|Net sales in CHF mn (previous year)||3,410 (3,432)|
|Growth in local currencies||4.4%|
Key investments in 2020:
Plant expansions in United Arab Emirates, France and Switzerland, Acquisition of Modern Waterproofing in Egypt
- For the EU countries, 2020 was the most challenging year since the end of the Second World War, with economic growth proving negative to the tune of –8%. Whereas a number of countries – including some of the largest economies such as the UK, France, Italy, and Spain – recorded a heavy, double-digit fall in economic growth, the contraction in other countries proved less severe and was limited to single-digit percentage territory, such as in Norway, Switzerland, Sweden, and Poland.
- Sika increased sales in local currencies in the EMEA region by 4.4% in 2020 (previous year: 11.6%). A strong improvement started to become apparent in the markets in the fourth quarter in particular.
DESPITE THE ECONOMIC DOWNTURN IN THE EMEA REGION, SIKA GREW SALES AND CONTINUED TO GAIN MARKET SHARES.
- The countries that benefited from the biggest recovery were those of southern Europe – Italy, Spain, Portugal, and France – as well as the countries of Eastern Europe, Scandinavia, the Middle East, and Africa.
- Sales developed in a more stable manner in central western European countries such as Germany, Austria, and Switzerland. The project business in theUK took a double hit in 2020 from the twin factors of Brexit and the pandemic. By contrast, the distribution channel managed to post double-digit growth.
THE DISTRIBUTION BUSINESS DEVELOPED ABOVE AVERAGE AND POSTED DOUBLE-DIGIT GROWTH FIGURES.
- In the year under review, Sika initiated the manufacture of shotcrete admixtures used in tunnel construction at its main plant in Gournay-en-Bray, to the north-west of Paris, and invested in new facilities.
- Sika also expanded its production in Switzerland, with a new, high-performing, and environmentally-friendly polyurethane technology produced at its Düdingen site. At the site in Sarnen, a new facility commenced operations at the start of the year for the manufacture of the structural waterproofing membrane SikaProof®.
- In Dubai, production capacity in the United Arab Emirates was expanded further. In addition to concrete admixtures, epoxy resins are now being produced locally for the Target Market Flooring.
- Furthermore, a leading Egyptian manufacturer of roofing and waterproofing systems was acquired in the year under review in the form of the Modern Waterproofing Group. The completion of the acquisition of Adeplast SA also brought a renowned manufacturer of mortar products and thermal insulation solutions based in Romania into the Group.
|Net sales in CHF mn (previous year)||1,996 (2,162)|
|Growth in local currencies||1.0%|
Key investments in 2020:
New factory in Colombia; expanded cooperation with CiDRA Concrete Systems in the USA
- Economic output in the United States declined by -3.7% in 2020, while Canada recorded an even higher decline of -5.5%. However, the north of the American continent fared better than large parts of Latin America, where gross domestic product slumped heavily. The contraction in Argentina, Mexico, and Peru amounted to as much as 10%.
- Within the Sika Group, the Americas region recorded a sales increase in local currencies of 1.0% (previous year: 19.2%). Despite the high COVID-19 infection rates recorded in Mexico, Brazil, and the United States, Sika recorded an uptrend in the Americas region in the last quarter of 2020.
THE MOST IMPORTANT MARKETS IN LATIN AMERICA HAVE RECOVERED FROM THE LOCKDOWNS. DEMAND IS STRONGLY INCREASING IN PARTS OF THE REGION.
- Many cities in North America continue to be affected by the pandemic and construction projects have slowed. The situation in Latin America has seen a clear improvement. Many countries such as Brazil, Chile, Peru, and Uruguay have recovered from lockdowns lasting many months, or are once again growing at double-digit rates.
- In many countries that imposed long lockdowns, revenues could only be generated during this period through the distribution business and e-commerce.
- To lay the basis for further growth, Sika invested in the production of concrete admixtures, acrylic-based liquid applied membranes, and mortars in Barranquilla, the fourth-largest city in Colombia.
- Furthermore, the company’s collaboration with CiDRA Concrete Systems Inc., which is headquartered in Eden Prairie, Minnesota, was expanded, and a growth equity investment agreement to supplement the existing global partnership was signed. CiDRA specializes in digital systems for monitoring concrete properties during transportation.
Asia / Pacific
|Net sales in CHF mn (previous year)||1,696 (1,585)|
|Growth in local currencies||12.6%|
Key investments in 2020:
New factory in China
- China emerged from the fiscal year just ended as the only major economy to record positive growth (2%). Most countries in this region recorded a GDP decline of around 5% as a result of the COVID-19 pandemic.
- Growth in the Asia/Pacific region amounted to 12.6% (previous year: 35.1%).
- China in particular performed impressively over the last few months, recording double-digit organic growth rates, and most target markets are now back on a clear growth trajectory.
THE CHINESE MARKET CONTINUED TO DEVELOP DYNAMICALLY. THE SUCCESSFUL INTEGRATION OF PAREX PROVIDES ADDITIONAL MOMENTUM.
- The former Parex business has been especially resilient in the face of the crisis, generating further growth in its various distribution channels.
- The project business in China is now also once again recording double-digit growth rates thanks to infrastructure orders.
- Australia was additionally able to contribute to the positive business development of this region. By contrast, India and a number of countries in the Southeast Asia region are still suffering from the significant repercussions of the coronavirus pandemic.
SIKA IS CONTINUOUSLY EXPANDING THE POSITION IN THE DISTRIBUTION BUSINESS AND GROWS SIGNIFICANTLY.
- Throughout the region, the distribution business defied the pandemic and recorded healthy growth. In particular, there was a strong rise in the number of shops in which Sika products are sold.
- Sika has further expanded its capacity in the fast-growing mortar market in China with the commissioning of a new factory in Chengdu.
|Net sales in CHF mn (previous year)||776 (930)|
|Growth in local currencies||-11.4%|
- In 2020, the automotive sector reported a global decline in output of -16.7%.
- Whereas the decline in the number of vehicles sold in China was kept within reasonable limits at –4.2%, the automotive markets of both Europe and North America experienced dramatic slumps in their production rates, of –22.6% and –20.1% respectively.
- Although business volumes in the automotive area recovered noticeably in the second half of the year in Europe in particular, it is expected to take some time before sales volumes in this sector return to 2019 levels.
INNOVATIVE SOLUTIONS FOR E-MOBILITY AND LIGHTWEIGHT CONSTRUCTION DRIVE ADDITIONAL MARKET SHARE GAINS.
- -11.4% sales development in Global Business (previous year: +3.0%).
- Despite the pandemic-related decline in sales figures during the crisis year of 2020, Sika is convinced that the megatrends shaping modern automotive construction – which include e-mobility, further new drive concepts, and the trend toward lightweight construction – will help the Group to capture additional market share and generate profitable long-term growth.
SIKA HAS THE TECHNOLOGIES TO ENABLE CLIMATE-FRIENDLY MOBILITY.
- For example, heat management in the modern battery systems of electric vehicles is a key element in the paradigm shift toward new drive systems. Sika is a leading player with its solutions in this area and is enabling the transformation to sustainable mobility.