SGS, the leading global testing, inspection and certification (TIC) company, provides an ad hoc trading update ahead of our Investor Days on November 18-19.
The long-term structural growth drivers of our industry remain strong with our organic revenue growth accelerating and we expect to be at the upper end of the mid-single digit growth range for full year 2022. Our adjusted operating income is expected to be at a similar level compared to the prior year at constant currency. Our previous guidance was improving adjusted operating income and achieving an adjusted operating income margin at prior year level.
Our organic revenue growth for the first ten months of 2022 has remained consistently strong at 6.2% and accelerated to 6.9% in July-October. The improved momentum has been primarily driven by Asia and the Americas; the responsiveness of our Chinese operations resulted in a strong return to growth following the COVID-related lockdowns in H1. At a divisional level, to end of October, Natural Resources and Knowledge grew organically in high-single digits, while Connectivity & Products, Health & Nutrition and Industries & Environment all grew in mid-single digits.
The consequences of the war in Ukraine have had a broader effect on our business mix and volumes in certain European end markets, impacting margins. We expect this impact to be temporary as global supply chains reorganize and create new opportunities elsewhere in our network.
We are confident that we will deliver a strong operational performance in 2023. This will be supported by annual recurring cost savings of more than CHF 50 million from 2023 at a one-off cost of CHF 35 million, our pricing initiatives and the investment in our platform for growth, including our Level Up and World Class Services efficiency programs. The strength and resilience of our business model will help to mitigate the current short-term market fluctuations and continue to create long-term value for all our stakeholders.
We look forward to welcoming some of you at our Investor Days in Istanbul.
A conference call will be held at 7:30 am CET today to enable analysts and investors to ask any questions related to the trading statement.
Register for the conference call at 7:30 am CET >
To join the conference call please use the following dial-in numbers:
France: +33 (0) 1 7091 8708
Germany: +49 (0) 69 505 0 0081
Hong Kong: +852 5808 1752
Switzerland/Rest of the World: +41 (0) 58 810 7000
United Kingdom: +44 (0) 207 098 0702
United States: +1 (1) 631 570 56 12
We are SGS – the world’s leading testing, inspection and certification company. We are recognized as the global benchmark for quality and integrity. Our 96,000 employees operate a network of 2,700 offices and laboratories, working together to enable a better, safer and more interconnected world.