- Sika’s first-half sales amounted to CHF5.68 billion, a slight decline of 2.7% compared to the previous year.
- EMEA region sales were CHF2.53 billion, a 1.5% decrease year-over-year, aligning with estimates.
- Sales in the Americas declined by 3% to CHF1.98 billion, falling short of the estimated CHF2.03 billion.
- The Asia Pacific region experienced a sales drop of 4.9% to CHF1.16 billion, below the estimates.
- EBIT (Earnings Before Interest and Taxes) stood at CHF798.1 million, down by 2.9% year-on-year, missing the CHF809.6 million estimate.
- Gross profit was reported at CHF3.13 billion, a reduction of 2.8% compared to the previous year.
- EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) stood at CHF1.07 billion, decreasing by 2.1% year-over-year.
- Net income was CHF554.4 million, a 3.9% decline from the prior year.
- Operating free cash flow showed a sharp decrease of 55% year-over-year, amounting to CHF181.9 million.
- Sales in local currencies grew by 1.6%, slightly below the 2.22% forecast.
- EMEA sales in local currencies rose by 1.9%, surpassing the 0.88% estimate.
- Americas sales in local currencies increased by 3.5%, though this was lower than the estimate of 4.28%.
- The EBITDA margin for the period was 18.9%, with a year forecast maintaining the range of 19.5% to 19.8%.
- Sika maintained a material margin of 55.1%, consistent with the previous year.
- A weaker US dollar, losing 10% against the Swiss franc, alongside global market uncertainties, impacted Sika’s results.
- In the Asia/Pacific region, local currency sales declined by 1.7%, affected by deflationary market conditions, particularly in China’s construction sector.
- Without the negative impact from China, the region would have seen positive low-single-digit growth.
- Sika observes a modest sales increase in local currencies expected for the full year.
- The current stock recommendations include 17 buys, 5 holds, and 3 sells.
“`
A look at Sika Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Investors looking at the long-term outlook for Sika are finding a company that ranks consistently solid across key factors. With a growth score of 4, Sika is positioned for expansion in the construction materials sector. This indicates potential for future development and market share increases, signaling positive growth prospects ahead.
Moreover, Sika’s overall resilience score of 3 underscores the company’s ability to weather economic uncertainties and maintain stability. Combined with its value and dividend scores of 3 each, Sika presents a balanced investment opportunity with a strong foundation for long-term success.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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