SGS H1 Profit Climbs On Sales Growth; Confirms FY25, FY27 Outlook

(RTTNews) - SGS Group (SGSOY.PK), a Swiss inspection, verification, testing, and certification company, reported Friday higher profit and sales in its first half. Further, the company confirmed its targets for fiscal 2025 and 2027.

In the first half, profit attributable to equity holders increased 17.6 percent to 314 million Swiss francs from last year's 267 million francs. Earnings per share were 1.64 francs, up 13.9 percent from 1.44 francs a year ago.

Operating income climbed 17.1 percent year-over-year to 486 million francs and operating income margin improved to 14.2 percent from 12.4 percent last year.

Adjusted operating income reached 509 million francs, an increase of 8.1 percent compared to prior year. The adjusted operating income margin increased 80 basis points to 14.9 percent. The growth was primarily attributable to the cost savings plan which more than offset adverse foreign exchange effect of 20 basis points.

Sales of 3.42 billion francs grew 2.6 percent from 3.34 billion francs a year ago. Organic sales growth was 5.3 percent.

Further, the company announced the appointment of Damien Rousseau as Head of Business Assurance and member of the Executive Committee, effective September 1. He succeeds Jeffrey McDonald who has decided to retire.

Looking ahead, for fiscal 2025, SGS continues to expect 5 percent to 7 percent organic sales growth, 1 percent to 2 percent bolt-on contribution to annual sales growth, and at least 30 30 basis points improvement in adjusted operating income margin, in reported terms.

For fiscal 2027, the company confirmed its objectives of organic sales growth of 5 percent to 7 percent annually, and significant improvement of at least 150 basis points in adjusted operating income margin versus 2023, in reported terms.

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