Home » Building materials group – Sika: Strong growth weighs on 2023 profits – News

Building materials group – Sika: Strong growth weighs on 2023 profits – News

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Building materials group – Sika: Strong growth weighs on 2023 profits – News

Sika grew strongly in 2023 thanks to a major acquisition. Sales climbed in local currencies by 14.5 percent to 11.2 billion francs. Because integration costs were pressured, the net profit of the construction chemicals and adhesives manufacturer fell. Company boss Thomas Hasler received a salary and bonuses of a good 4.5 million francs last year.

With takeovers alone, the Zug-based company Sika grew by 13.3 percent in 2023. The most important event was the takeover of competitor MBCC from Germany, which was completed in May.

With the growth in the construction chemicals business, Sika achieved additional annual sales of 2.1 billion. The central Swiss company became the undisputed market leader with its products, which are used to reinforce and seal building materials.

The largest takeover in the company’s history also had its price: Because high special costs of 131.5 million were incurred for the acquisition and integration of MBCC, net profit fell by 8.6 percent to 1.06 billion francs.

4.5 million francs in wages and bonuses for Sika boss

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CEO Thomas Hasler received a salary and bonuses of a good 4.5 million francs in 2023. This is slightly more than the year before, when he earned just under 4.2 million.

Hasler’s salary in 2023 consisted of a fixed basic amount of 1.25 million francs and a paid and short-term performance bonus of 1.88 million. In addition, Hasler received securities worth 1.08 million francs as part of a long-term participation plan. There are also other payments, social security contributions and pension expenses, as shown in the annual report published on Friday.

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Last year, Sika spent 17.1 million francs on remuneration for the entire group management, around one million more than in 2022.

In addition, Sika had recorded a high extraordinary book profit from the sale of part of the company in the previous year. But the shareholders don’t have to starve: the dividend should increase by 10 cents to 3.30 francs per share.

“Good dynamics despite a challenging environment”

The environment was challenging and is likely to remain so in the current year, said CEO Thomas Hasler about business developments. However, there is good momentum in large construction and infrastructure projects in all regions.

The group is confident that it will improve sales in local currencies by 6 to 9 percent in 2024. At the same time, Sika confirmed the medium-term goals of “Strategy 2028”. According to this, the operating profit margin should increase to around 20 to 23 percent.

As the group further announced, Thomas Aebischer will be nominated for election to the board of directors at the next general meeting.

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