Sika Boosts Outlook as Strong First-Half Performance Outshines Market Uncertainty

Swiss construction chemicals maker Sika has raised its annual sales-growth outlook following a strong first-half performance. The company's revenue for the six-month period ended June 30 fell 1.5% to 5.59 billion Swiss francs, but exceeded analysts' expectations of 5.44 billion francs.

Sika's CEO Thomas Hasler said that the year started strongly against a muted market and geopolitical uncertainty. The company's continued share gains across its markets enabled it to raise its revenue growth guidance from an earlier range of 1% to 4% to 3%-6% in local currencies.

The Baar-based company reported earnings before interest, taxes, depreciation, and amortisation (Ebitda) of 1.06 billion Swiss francs for the first half, exceeding analysts' expectations of 1.02 billion francs. Sika now expects an Ebitda margin of 19% to 19.5%, down from an earlier forecast of 19.5% to 20%.