Q3 2024 Sika AG Earnings Call Transcript
Key Points
- Sika AG (SKFOF) reported a record CHF8.9 billion in sales, marking a 5.5% growth in Swiss francs.
- The company achieved significant improvement in material margin, increasing from 53.1% to 54.7%.
- EBITDA margin improved from 17.8% to 19.1%, driven by strong synergy collection from the MBCC transaction.
- Sika AG (SKFOF) expanded its footprint with new plants in Latin America, the US, Germany, and Australia, enhancing its strategic offerings.
- The company confirmed its growth outlook of 6% to 9% in local currency, maintaining confidence in its strategic targets for 2028.
- Currency effects negatively impacted growth, reducing local currency growth by 3.6% to 5.5% in Swiss francs.
- Organic growth in Asia Pacific was slightly negative at -0.5%, with China experiencing a decline in the project business.
- The automotive and industrial manufacturing sectors in Europe faced volume declines due to a downturn in demand for new vehicles.
- Net interest expense increased by CHF34 million, largely due to the financing of the MBCC acquisition.
- The company faces ongoing investigation by the EU Commission on price fixing in concrete admixtures, which remains unresolved.
Ladies and gentlemen, welcome to the Sika nine Months 2024 Results Conference Call and Live Webcast. I'm Sandra, the Chorus Call operator. (Operator Instructions) The conference is being recorded. (Operator Instructions) The conference must not be recorded for publication or broadcast. At this time, it's my pleasure to hand over to Dominik Slapping, Head of Communication, and Investor Relations of Sika. Please go ahead, sir.
Thank you, Sandra, and good afternoon, and welcome to our nine months results conference call. Present on the call with me today is Thomas Hasler, CEO; Adrian Widmer, CFO; and Christine Kukan, Head of IR; Jami Lieberman, HR Manager. .
We published our nine months figures this morning at 5:00. The presentation to the nine-month results is as well published on our website. With this, Thomas Hasler and Adrian Widmer will provide further details on the results and the outlook. Afterwards, we will be ready to take your questions.
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