SGS Demonstrates Resilience in an Unprecedented Pandemic
“The way society has adapted by rising to the challenges it has faced over the past four months has been impressive. Many of these changes will endure, which makes the role of the TIC industry and SGS’s commitment to enabling a better, safer and more interconnected world even more relevant.
SGS is resilient but not immune to the impact of this pandemic. The dynamism and responsiveness demonstrated by our employees in such a challenging operating environment has driven a resilient performance in H1 2020. Our focus has been on employee safety, customer service continuity, pioneering new services, continued investment in high growth potential markets and financial discipline.
Considerable additional measures have been rapidly put in place by our risk management, operational integrity and human resources teams to ensure employee safety, some of which have been tailored into our service offering.” Frankie Ng, Chief Executive Officer
A Resilient Financial Performance in H1
Revenue reached CHF 2.6 billion, down by 20.7% (-14.9% at constant currency*), notably driven by the disposal of the Petroleum Service Corporation (PSC) in 2019. Organic Revenue* declined by 10.4%, impacted by the pandemic.
Operating Income decreased from CHF 636 million in prior year to CHF 302 million in 2020 mainly driven by the exceptional gain of CHF 264 million on the disposal of the PSC business in 2019 and by the pandemic in 2020.
Adjusted Operating Income* decreased from CHF 489 million in prior year to CHF 330 million in 2020, a decrease of 32.5% (-26.8% at constant currency*).
Profit Attributable to Equity Holders decreased from CHF 377 million in prior year to CHF 171 million in 2020, a decrease of 54.6% over last year.
Free Cash Flow (FCF)* increased significantly by 43.5% from CHF 216 million in prior year to CHF 310 million in 2020 driven by a strong working capital management.
* Alternative Performance Measures (APM) – refer to the 2020 Half Year APM document
For further information, please contact:
Investors: Toby Reeks
t: +41 79 641 83 02
Media: Daniel Rufenacht
Corporate Communications and Sustainability
t: +41 78 656 94 59
SGS is the world’s leading inspection, verification, testing and certification company. SGS is recognized as the global benchmark for quality and integrity. With more than 89,000 employees, SGS operates a network of over 2,600 offices and laboratories around the world.