Home / Knowledge / News / Textiles / SGS H1 revenue grows 5.3% to CHF 2.8bn
SGS H1 revenue grows 5.3% to CHF 2.8bn
17
Jul '14
The SGS Group announces first half results for the year 2014. SGS delivered a first semester revenue growth of 5.3% (constant currency basis) to CHF 2.8 billion, with an organic revenue growth of 4.0% and an additional 1.3% contributed by recently acquired companies. However, due to the significant appreciation of the Swiss Franc against the majority of currencies SGS operates in around the world, Group revenues for the period declined 1.8% in comparison with published figures for June 2013 (historical basis). 
 
Resilient organic growth for the period was achieved despite market conditions continuing to worsen throughout the semester for Minerals Services. This was offset by Oil, Gas & Chemicals Services delivering high single digit growth supported by Upstream activities, and Agricultural Services also achieving strong results as trade flows regained momentum. 
 
In Europe, economic headwinds continued to affect top-line growth for Industrial Services and Systems & Services Certification, and intense commercial pressure on retailers has progressively impacted volumes for Consumer Testing Services. 
 
Excluding the Minerals business, which experienced an organic revenue decline of 7.6%, the remaining businesses delivered organic growth of 5.8%. The Group reported an adjusted EBITDA of CHF 554 million, up 5.3% (constant currency basis) over prior year and an adjusted operating income of CHF 420 million, resulting in a margin of 15.0% in line with prior year at constant currency. 
 
On a reported basis however this margin dropped from 15.4% to 15.0%, impacted by the strength of the Swiss Franc. While restructuring measures taken in 2013 improved the profitability of our Industrial and Environmental Services in Europe, the measures taken for Minerals Services were offset by declining revenues and competitive pressures. In view of market expectations regarding a limited recovery in exploration spend in 2015, additional measures to adjust capacity and concentrate sample flows have been taken for Minerals Services resulting in an after tax expense of CHF 8 million. 
 
Net financial expenses for the period increased slightly to CHF 23 million following the issuance of new corporate bonds for a total of CHF 362 million and the overall effective tax rate for the period remained 27%, consistent with the Group’s full year expectation.
 
Profit Attributable to Equity Holders reached CHF 255 million for the period, up 6.3% over prior year on a constant currency basis, but down 3.8% compared with the CHF 265 million reported in June 2013 due to the strength of the Swiss Franc. 
 
Operating cash flows amounted to CHF 260 million for the semester, in line with expectations and corresponding to 9.3% of Group revenues versus 11.1% in prior year. This inflow was used primarily to fund net investments in fixed assets of CHF 123 million, resulting in an operating free cashflow of CHF 130 million. 
 
Click here to view more results.
 

SGS


Must ReadView All

Apparel/Garments | On 25th Sep 2017

Vietnam textile sector to gain if EU FTA gets ratified

Experts feel the Vietnam-European Union (EU) free trade agreement...

Apparel/Garments | On 25th Sep 2017

AAFA urges US govt to plug lacunae in military procurement

The American Apparel & Footwear Association (AAFA), an alliance of...

Apparel/Garments | On 25th Sep 2017

Amazon trying to enter Turkish home textile product market

Amazon has noticed Turkey’s potential in e-commerce and is discussing ...

Interviews View All

Vasanth Kumar
Max Fashion India

‘Traditional high-street retailers are now willing to offer franchisees to ...

Karan Suratwala
Key Textile Accessories Private Limited

Chinese imports are destroying the supply chain

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Anisha Chaudhari
Threads & Shirts

Threads &amp; Shirts is a freshly-tailored concept providing men/women a...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

September 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search