Sika Earnings: Impressive Performance Underpinned by the Integration of MBCC

Narrow-moat Sika delivered strong results, marginally beating Vara consensus for first-half revenue and EBITDA. Revenue grew 13% year over year to CHF 5.8 billion during first-half 2024, including a 12% contribution from the acquisition of MBCC Group. The integration of MBCC is tracking ahead of management's initial expectations, and they have raised their annual expected synergies by CHF 20 million to between CHF 100 million and CHF 120 million for fiscal 2024. Sika’s full-year guidance of revenue growth between 6% and 9% and an overproportional increase in EBITDA was confirmed. Shares are trading 2% higher and screen as overvalued to our CHF 230 fair value estimate, which we maintain.