SGS with stable sales in 2023 – New medium-term targets
Published: Friday, Jan 26th 2024, 06:20
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In addition to a surprising change in CEO, the goods testing and inspection group SGS has also presented its annual figures for 2023. Turnover was roughly on a par with the previous year, although organic growth was better. Looking ahead, the company has now set itself new medium-term targets. The Group is also planning a restructuring.
SGS's sales fell by 0.3 percent to 6.62 billion Swiss francs in 2023, as the globally active group headquartered in Geneva announced on Friday. Adjusted for acquisitions and currency effects, SGS grew by 8.1 percent (previous year: 5.8%).
Meanwhile, the result suffered from the general rise in costs and inflation: the operating result adjusted for special factors fell by 5.1 percent to CHF 971 million and the corresponding margin fell by 0.7 percentage points to 14.7 percent.
The bottom line was an unadjusted profit attributable to shareholders of CHF 553 million, compared to CHF 588 million in the previous year. The dividend is set to amount to CHF 3.20 per share and will therefore remain stable, taking into account the share split.
With the exception of organic growth and the dividend, SGS missed analysts' targets across the board.
Looking ahead, the company announces new medium-term targets. The aim is to increase profitable growth and streamline the Group structure by 2027. This should lead to cost savings. Annual organic growth of 5 to 7 percent is to be achieved by 2027. The adjusted operating profit margin is to be improved by at least 1.5 percentage points by 2027 and cash conversion is to exceed 50%.
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