SGS 2019 Half Year Results
SGS delivers solid results and achieves a number of strategic milestones in H1 2019.
SGS Delivers Solid Results
Total revenue grew by 3.9% at constant currency to CHF 3.3 billion.
Good organic growth of 3.5% was achieved across the business portfolio, with most business lines delivering mid-single-digit growth.
The adjusted operating income reached CHF 489 million, versus CHF 464 million in prior year, an increase of 5.4% on a constant currency basis.
The adjusted operating income margin increased by 20 bps on a constant currency basis to 14.6%.
A Number of Strategic Milestones Achieved
A number of strategic milestones have been achieved by the SGS Group in H1 2019:
- The Group has disposed of Petroleum Services Corporation (PSC), a provider of downstream Plant and Terminal Operations, and acquired Maine Pointe LLC, a business process optimization consulting firm, both based in the USA. These demonstrate the Group’s capital allocation strategy of increasingly moving towards higher value-added services.
- The development of cyber security laboratories and centers of excellence in Madrid, and soon in Graz, as well as a partnership with Graz University, position the organization as a key player of this rapidly growing nascent TIC sector driven by increasing regulations. It also provides a natural overlap with the Group’s current TIC services.
- Structural optimization measures to streamline the business across the global network will be undertaken in H2 2019. The cost of CHF 75 million should deliver annualized savings by 2020 that will exceed this initial investment.
The H1 2019 results coupled with the structural optimization measures to be implemented in H2 support the Group’s 2019 guidance and 2020 outlook, which are both confirmed.
These results underline the Group’s objectives to deliver higher revenue, higher profitability and best-in-class returns on invested capital in a sustainable manner, thus creating long-term value for its customers, shareholders and for society.
For further information, please contact:
Investors: Toby Reeks
t: +41 79 641 83 02
Media: Daniel Rufenacht
Corporate Communications and Sustainability
t: +41 78 656 94 59
SGS is the world’s leading inspection, verification, testing and certification company. SGS is recognized as the global benchmark for quality and integrity. With more than 97,000 employees, SGS operates a network of over 2,600 offices and laboratories around the world.