“The progressive market recovery, the evolution of TIC end-markets and customer demand confirm our strategic evolution; our journey to becoming a more sustainable, data-driven company and our commitment to enabling a better, safer and more interconnected world for all our stakeholders,” says Frankie Ng, Chief Executive Officer of SGS.
A Resilient Financial Performance in H1
Total revenue reached CHF 3.1 billion up 16.8% (17.9% at constant currency*) notably driven by the ongoing recovery following the COVID-19 pandemic and by a significant contribution from acquired revenue. Organic revenue* increased by 12.4%.
Operating income increased from CHF 302 million in prior year to CHF 430 million in 2021 led by the revenue increase and by improved productivity.
Adjusted operating income* increased from CHF 330 million in prior year to CHF 457 million in 2021, an increase of 38.5% (40.6% at constant currency*).
Profit attributable to equity holders increased from CHF 171 million in prior year to CHF 272 million in 2021, an increase of 59.1% over last year.
Free cash flow (FCF)* decreased from CHF 220 million in prior year to CHF 93 million in 2021. Cash flow was impacted by higher operating net working capital* due to the increased level of activity over last year and an exceptionally low comparable at December 31, 2020. However, the operating net working capital* as a proportion of revenue slightly increased from (0.2)% in prior year to (0.1)% in 2021 and the outflow in H1 2021 is on a similar level as H1 2019. Cash flow from operating activities decreased from CHF 413 million in prior year to CHF 342 million in 2021.
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* Alternative Performance Measures (APM) – refer to the 2021 Half Year APM document
For further information, please contact:
Toby Reeks
SVP Corporate Communications, Sustainability & Investor Relations
t: +41 79 641 83 02
www.sgs.com
About SGS
We are SGS – the world’s leading testing, inspection and certification company. We are recognised as the global benchmark for quality and integrity. Our 93,000 employees operate a network of 2,600 offices and laboratories, working together to enable a better, safer and more interconnected world.