Goods testing Goods inspection group SGS confirms its growth course
The goods inspection group SGS believes it is on track with the implementation of its strategy. Accordingly, the company confirms its medium-term targets up to 2027 and the forecasts for the current full year 2024.
20.11.2024, 07:17
SDA
For 2024, SGS continues to anticipate organic growth in the mid to high single-digit percentage range, as outlined in a press release issued at the Capital Markets Day on Wednesday (today). In addition, the operating margin is to be further improved. SGS last confirmed this target at the end of October on the occasion of the third quarter figures.
The medium-term targets were also confirmed. SGS is aiming for annual organic growth of between 5 and 7 percent with significantly higher margins until 2027. The adjusted operating profit margin is to be improved by at least 1.5 percentage points by then.
Significant growth in the area of sustainability
Specifically, the management expects to generate additional sales of at least CHF 600 million in the Sustainability segment and at least an additional CHF 200 million in the Digital Trust segment by 2027. In addition, sales in North America are expected to double by then thanks to a new geographical focus, according to the statement.
SGS also intends to drive growth through acquisitions. The Group expects acquisitions to contribute one to two percent to annual sales growth between 2024 and 2027. With the signing of an agreement to purchase MP Machinery, a specialist for nuclear testing in North America, SGS is announcing its tenth acquisition this year on Wednesday (today).
The cost-cutting program of 100 million Swiss francs is progressing faster than planned. Additional savings of CHF 50 million have been identified through procurement initiatives.
