“Beyond the Expected”: Sika launches new growth strategy 2028 with more ambitious targets

With the new strategy, Sika once again sets a higher mid-term guidance for growth and profitability. 

On growth, the company intends to boost sales by 6-9% per year (target until 2023 was 6-8%) in local currencies until 2028, despite a volatile short term market environment. Sika has perfectly positioned itself to benefit from megatrends such as an increasing world population, urbanization, resource scarcity, digitalization, and climate change. These megatrends drive customer demand for efficient and sustainable solutions.

Profitability will be increased to 20-23% EBITDA margin (close to 19% in 2022), mainly by enhanced leverage, operational efficiency, and improving material margins. To further underline the importance of acquisitions for the Group, Sika has changed to EBITDA as the key performance indicator in the new strategy. The reason being that it excludes distortion from intangible asset amortization, and thus gives a more concise picture of the actual local business performance.

In addition, Sika maintains its objective of an operating free cashflow above 10% of net sales. It will continue to strive for a return on capital employed of 20-25%. 

Sika’s sustainability roadmap is a cornerstone of its new growth strategy. Sika’s products and services make buildings, infrastructure, and vehicles more energy efficient, extend their life span, contribute to circularity, and help reduce CO₂ emissions. At the same time, by 2028, Sika aims to reduce absolute scope 1 and 2 emissions – its own greenhouse gas emissions –by 20% compared to 2022. Sika also strives to decrease emissions through its value chain – scope 3 – in line with its net-zero-pledge by 2050. In addition, the company is committed to save natural resources and reduce the waste volumes disposed and the water discharged per ton sold by 15% until 2028 compared to the base year 2023.

Sika’s employees are its most valuable asset. Through effective leadership, the company aims to maintain its exceptional employee engagement rate above 80%. This will be measured using the results of a company-wide survey that will be conducted every two years by an independent external provider.

To align the company’s organization with the new Strategy 2028, Sika has decided on organizational changes. Firstly, as previously announced, there has been a rotation in responsibility in Group Management. Secondly, the regional organization has been adapted. Automotive and Industry have been combined on a regional level to gain maximum momentum in a dynamic environment, increasingly dominated by solutions for e-mobility and renewables. The region Global Business will merge with the Target Market Industry and form a dedicated Area Automotive & Industry in each geographic region, effective from January 1, 2024. 

For more information on the Strategy 2028 and the Capital Markets Day 2023, please visit: