ZURICH (Reuters), – Sika is able to overcome rising raw materials costs and restrictions in supply chains, according to the Swiss manufacturer of construction chemicals. This will allow it increase sales and profits this year.

The company, whose products are used to seal, reinforce and protect building materials, said it expects sales growth in local currencies of 13%–17% this year, and a higher increase in operating profit, confirming previous guidance.

It said that the operating profit margin (EBIT), will be 15% this year for the first-time, “despite challenging raw material prices development and supply chain constraints.” It posted an EBIT margin in 2020 of 14.4%.

Sika made a statement prior to its investor day. It also reiterated its 2023 goals, saying that it still targets 6-8% growth in local currency sales each year, and anticipates raising operating profit margins from 15-18% to 2021.

According to the outlook, this confirms guidance that was given in July’s half-year results.

According to it, margin improvement would be due to cost savings in operations logistics procurement and product formulations.

According to Sika, these should lead to an increase in annual operating costs equal to 0.5% of sales. Sika also wants to lower its carbon footprint.

Thomas Hasler was appointed chief executive of Sika in May. He stated that the company would continue looking at new products and acquisitions to meet its objectives. This year, the company already has seven acquisitions.

He said, “Our company is great for continued growth and long-term survival.”