The Swiss chemicals group Sika, which specializes in building materials, reassured investors when it released its nine-month results on Thursday, despite sales down slightly with the shock of the health crisis.
For the first nine months of the year, the group which manufactures sealants, adhesives and sealants for the building industry reported sales in line with expectations, down 3.4% year-on-year to 5.8 billion Swiss francs (5.4 billion euros), he said in a statement.
But the group surprised on its net profit, better than expected, despite the pressure of the Swiss franc. Compared to the comparable period last year, it contracted 0.9% to 561.5 million Swiss francs. By comparison, analysts surveyed by the Swiss agency AWP expected an average of 506.5 million in profit for 5.8 billion in revenue.
The Swiss group was affected in the first half of the year by site closures but managed to limit the erosion of its sales thanks to its recent acquisitions.
Sales growth in Asia-Pacific
Last year, Sika made the biggest acquisition in its history by spending 2.5 billion Swiss francs to buy the French company Parex, with the aim of doubling the size of its mortars activities. This acquisition enabled it to continue to grow in Asia-Pacific despite the health crisis, in particular in China where the activities inherited from Parex have particularly “withstood the crisis”, Sika pointed out.
In Asia-Pacific, its nine-month sales climbed 13.9% in local currencies over the past nine months, offsetting slower growth in other markets.
«Despite the severe repercussions of the coronavirus pandemic“Sales in local currencies rose 2.6% across the group, with acquisitions contributing 9.2% to growth, Sika detailed.
At 7:53 GMT, the stock appreciated 2.98% to 235.20 Swiss francs, one of the few values in the green within the SMI, the benchmark index of the Swiss Stock Exchange, which fell by 0.61%. These figures will give back “more investor confidence“, Who had questioned”few months ago“His growth forecasts, wondering if they were not”too optimisticJefferies analysts responded in a stock commentary.