“The overall recovery of the TIC industry continues to be affected by COVID-19 related challenges. This is impacting part of our network and the daily life of our colleagues, whose safety remains our paramount priority.
“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
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We are SGS – the world’s leading testing, inspection and certification company. We are recognized 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.