WASHINGTON (dpa-AFX) - Swiss specialty chemical firm Sika (SXYAY.PK, SKFOF.PK) presented its new Strategy 2028 at Capital Markets Day in Zurich. The company reported a sales growth of 12.2% in January 2023 to August 2023 period. The company increased annual sales growth target to 6%-9% in local currencies and profitability target to an EBITDA margin of 20%-23%.
Sika said it 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.
Meanwhile, Sika said it plans 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.
Profitability will be increased to 20%-23% EBITDA margin (close to 19% in 2022), mainly by enhanced leverage, operational efficiency, and improving material margins.
In addition, Sika maintained 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%.
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