Sika reports record annual operating profit in 2022

(Reuters) - Swiss chemicals company Sika AG reported a better-than-expected operating profit for 2022 on Friday and said sales will rise by 6%-8% in local currencies for 2023, as the company benefits from price increases and more government projects.

Sika, whose products are used to strengthen and waterproof walls, roofs and floors, said operating profit rose by 13.5% to a record 1.58 billion Swiss francs ($1.70 billion), in line with its guidance and beating analysts' expectations of 1.57 billion francs.

"We have achieved record results both in terms of sales and profit in a challenging market environment," Chief Executive Thomas Hasler in a statement.

"For the first time in Sika's history, we generated sales in excess of CHF 10 billion," he added.

Net profit rose 10.9% to 1.16 billion francs, narrowly missing forecasts for 1.17 billion francs. The company proposed increasing its dividend to 3.20 francs from 2.90 Swiss francs in 2021.

Operating profit margin came in at 15.1%.

Last year Sika benefited from increased building activity as it tapped into government infrastructure projects, refurbished bridges, tunnels, and industrial and commercial buildings.

The company raised prices by around 16% during the year, built five plants and made two acquisitions in Canada and the United States to expand its global footprint.

It had reported full year sales in January, which rose 13.4% to 10.49 billion francs.

(Reporting by John Revill in Zurich and Shivani Tanna in Bengaluru; Editing by Nivedita Bhattacharjee)