Sika Half-Year Report 2023

STRONG MATERIAL MARGIN AND OPERATING FREE CASH FLOW IMPROVEMENT

In the first half of the year, Sika expanded its material margin significantly to 52.7% (previous year: 49.4%), and thereby takes an important step on the road to a material margin recovery. Profit at EBIT level was shaped by one-time effects. In the prior-year period, Sika recorded an extraordinary book profit of CHF 168.3 million due to the divestment of its European industrial coating business. In addition, the first half of 2022 saw one-off expenses amounting to CHF 28.0 million incurred in connection with the MBCC acquisition. In the first half of 2023, Sika had costs of CHF 89.5 million relating to the acquisition and integration of MBCC. When adjusted for these effects, Sika expanded its EBIT margin significantly to 14.0% (first half of 2022: 13.4%). Excluding the one-time effects, EBIT increased to CHF 749.9 million in the first half of 2023 (first half of 2022: CHF 701.6 million). When one-time effects are included, EBIT amounted to CHF 660.4 million (first half of 2022: CHF 841.9 million).

SALES GROWTH IN LOCAL CURRENCIES ACROSS ALL REGIONS

In the first half of 2023, Sika recorded growth in local currencies in all regions, despite challenging economic conditions. In addition, this half-year report incorporates two months’ contribution from MBCC activities. Every region, except for Global Business, benefited from the acquisition. At Group level, the acquisition effect amounted to 7.2% in the first half of the year.