The SGS Group delivered a resilient first semester revenue growth of 7.2% (constant currency basis) to CHF 2.9 billion despite challenging market conditions for some of the Group’s business sectors and the winding down of Life Science clinical trial operations in France. This top-line increase reflects an organic revenue growth of 5.0% for the period (constant currency basis) as well as 2.2% in additional revenues from twenty-five recently acquired companies.
Adjusted operating income grew 6.8% over the same period (constant currency basis) to CHF 439 million with a margin of 15.4%, in line with prior year despite weaker results in Minerals Services. In response to deteriorating market conditions, additional restructuring activities have been carried out resulting in one-off expenses of CHF 12 million. Net Profit for the period, including restructuring costs, reached CHF 265 million, 10.0% ahead of prior year.
During the semester, the Group generated a strong operating cash inflow of CHF 316 million, up 29.5% over prior year. Net capital investments during the period amounted to CHF 163 million and the Group completed eight acquisitions for a total cash outflow of CHF 67 million.
The Group confirms solid top line growth and improved operating results for the full year on a constant currency basis.
