Swiss firm SGS' total revenue grows 3.7% to CHF 6.6 bn

Adjusted operating income, on a constant currency basis, was broadly stable at CHF 1,023 million in FY22 compared to CHF 1,022 million in the prior year. Operational leverage was temporarily offset by the impact of COVID-19 in China, supply chain disruption, and acceleration of inflationary pressure, SGS said in a press release.

The company’s profit for FY22 was CHF 630 million, a 3.8 per-cent decline, compared to CHF 655 million in FY21. Furthermore, the adjusted operating income margin was 15.4 per cent in FY22, compared to 16.5 per cent in prior year.

Basic earnings per share was CHF 78.86 in FY22, compared to CHF 81.91 in prior year. On an adjusted basis, earnings per share increased by 3.4 per cent to CHF 92.46.

SGS’ free cash flow in FY22 was CHF 507 million compared to CHF 635 million in the prior year. The company’s cash flow was impacted by higher net working capital to support the strong revenue growth.

Over 47 per cent of the group revenue now is part of SGS’ Sustainability Solutions Framework. The company’s approval for 1.5 degrees Celsius and net-zero targets for science-based target initiative (SBTi) sets the benchmark in sustainability for the TIC industry and reduces SGS’ impact on the planet.

For FY23, the SGS expects mid-single digit organic growth, improved adjusted operating income and margin, and strong cash conversion. The company also expects to accelerate investment into its strategic focus areas with mergers and acquisitions as a key differentiator.

Frankie Ng, CEO of SGS, said: “The results are in line with the guidance set at our November investor days. They are the outcome of our team’s ability to navigate this challenging environment while continuing to deliver the excellence of service expected by our customers throughout the year.

“The approval of our net-zero targets by SBTi reflects our strategic commitment to improving our impact on the planet. Our actions as a company and the sustainability-related solutions that support our customers are a unique advantage for SGS, supporting our leading TIC industry position."

Fibre2Fashion News Desk (DP)