Rising inflation and interest rates impact sales and revenue of construction chemicals firm in Q1 2023
The macroeconomic environment, including rising inflation, interest rates, and the ongoing war between Russia and Ukraine, is having an impact across different industry verticals, including the global construction market. Construction chemical firms are also experiencing the impact of these factors amid the cooldown in the building sector. · Swiss chemical maker Sika AG (Sika) reported a 3% decline in Q1 2023. Notably, the sales declined to 2.35 billion Swiss francs during the period, compared to 2.39 billion Swiss francs. In local currencies, the sales increased by 1.2% during the first quarter, which is down from a 21.9% increase in local currency sales in Q1 2022, during which the firm benefited from a construction boom fueled by low interest rates and pent-up demand following the global pandemic outbreak. While the first quarter has been a challenging period for the Swiss chemical maker, the firm has announced that ...