The Sika Growth Model is synonymous with long-term success and profitable growth. By focusing on market penetration, innovation, emerging markets, and acquisitions, and driven by its strong corporate values, Sika is growing successfully.

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 28 new plants, 11 new national subsidiaries and 17 acquisitions – a total of 56 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 2018

In the business year 2018, Sika expects a sales increase of more than 10%. Volatile and rising commodity prices will continue to present a challenge in the current year. In China, for example, access to raw materials has been impaired by environmental constraints introduced by the government. Operating profit (EBIT) should enjoy a disproportionate high rise in 2018.

With investments in nine new factories, three additional national subsidiaries and seven acquisitions, the basis for future growth has been established. These key investments allow the Group to look with much confidence to the future.