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 35 new plants, 11 new national subsidiaries and 19 acquisitions – a total of 65 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

Based on the result for the first nine months of the current financial year, Sika is confirming its target for full year 2018 – namely an increase in sales of more than 10% to reach CHF 7 billion for the first time. Volatile and rising raw material prices continue to pose a challenge.

Despite the one-off costs incurred in connection with resolving the takeover dispute and the higher raw material prices, Sika is expecting double-digit growth rates for both EBIT and net profit for the year as a whole. The growth strategy will be continued in 2018 with the opening of at least eight new factories and further acquisitions in the highly fragmented construction chemicals market.