BRUSSELS (dpa-AFX) - Sika AG (SKFOF, SXYAY), the Swiss specialty chemical company, reported a 5.6% decline in net profit and a 3.8% drop in net sales for the first nine months of 2025. Despite these setbacks, the company reaffirmed its financial outlook for both fiscal years 2025 and 2028, signaling confidence in its long-term strategy.
In response to ongoing market weakness-particularly in China, Sika is initiating structural adjustments that include a workforce reduction of up to 1,500 employees. These changes are expected to incur one-off costs of 80 million Swiss francs to 100 million francs during 2025. The restructuring is part of a broader investment and efficiency initiative titled 'Fast Forward.'
The 'Fast Forward' program is designed to strengthen Sika's leadership position, enhance customer value, and improve operational excellence through digital acceleration. It includes planned investments of 120 million francs to 150 francs and is projected to generate annual savings of 150 million francs to 200 million francs. Through this initiative, Sika aims to drive sustainable growth and profitability while adapting to challenging market conditions.
For 2025, Sika still expects a modest increase in local currency sales, despite an overall shrinking market and challenging market conditions in China. The EBITDA margin is expected to be approximately 19% after one-off costs. Excluding these costs, Sika expects an EBITDA margin of between 19.5% and 19.8%.
For the medium-term, Sika confirmed its Strategy 2028 target of an EBITDA margin of 20%-23%. Sika is rebasing its growth guidance to 3%-6% in local currencies, reflecting a revised market growth assumption over the remaining three years of the strategy period.
Sika's net profit for first nine months of 2025 decreased 5.6% to 870.9 million Swiss francs from 922.6 million Swiss francs in the prior year.
Operating profit (EBIT) was 1.238 billion francs down from 1.295 billion francs last year.
Net sales for the nine-month period declined 3.8% to 8.578 billion francs from 8.915 billion francs last year.
The company reported a 1.1% increase in sales in local currencies during the first nine months of 2025, demonstrating resilience despite a double-digit decline in China's construction sector. However, the company faced a significant foreign currency impact of -4.9%, primarily driven by the depreciation of the US dollar, which weighed on overall reported sales figures.
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