Management consultancy SGS grows in the third quarter

SGS grew organically in the third quarter. However, exchange rate effects continued to depress results. The product testing group confirms its annual targets.

Sales rose organically by 7.3 percent to 1.7 billion Swiss francs in the third quarter, as the Geneva-based company announced on Friday. Adjusted for currency and acquisition effects, the increase amounted to 3.8 percent.

For the first time, SGS has provided information on its business performance in the third quarter, but has not published any profit figures. With the figures presented, the Group met analysts' expectations exactly in terms of organic growth and slightly exceeded them in terms of sales.

Overall, revenue climbed by 2.3% to CHF 5.0 billion in the first nine months.

Outlook confirmed

According to the press release, all divisions contributed to growth, driven by the trends of sustainability, digital trust, supply chain services and increased regulation. These increased particularly in Latin America (+17%) and Eastern Europe, Middle East & Africa (+11%). However, sales in North America also grew organically by almost 9%.

The company confirms its forecast for the year. Accordingly, SGS expects mid to high single-digit organic growth and increasing profitability.

In the medium term, i.e. until 2027, SGS is aiming for annual organic growth of between 5% and 7% with significantly higher margins. The adjusted operating profit margin is to be improved by at least 1.5 percentage points by then.

New Head of Human Resources found

Finally, the company was able to announce a new Head of Human Resources: James Roberts will take over the position, which Group CEO Géraldine Picaud has held on an interim basis since September, on November 1. Roberts comes from Holcim UK. The company has also appointed Chief Information Officer David Plaza to the Executive Board.

In addition, SGS has announced four further acquisitions in Europe and North America. Together with the five acquisitions announced in the first half of 2024, these will result in total annualized sales of around CHF 70 million.

In addition, "Impact Now", a new platform for sustainability services and a new PFAS campaign will be launched.

SDA