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 2012 Sika has invested in 54 new plants, 22 new national subsidiaries and 26 acquisitions – a total of 102 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 2017

The strategic targets for 2020 were successfully implemented in the first nine months of 2017, leading to record results. The strong performance supports the target for the full year – namely, a 6-8% increase in sales to more than CHF 6 billion for the first time.

Volatile and rising raw material prices present a challenge in the current year. Operating profit (EBIT) is expected to once again increase at a disproportionately high rate, reaching between CHF 880 million and 900 million for the full-year 2017. The unknown outcome of Saint-Gobain’s hostile takeover attempt remains an element of uncertainty for the future.