Switzerland's SGS posts total revenue of CHF 3.3 bn in H1 FY23

The group's adjusted operating income saw an increase of 11.3 per cent at constant currency in H1 FY23, reaching CHF 462 million from CHF 415 million in the previous year. The adjusted operating income margin improved by 40 basis points to 14.1 per cent compared to 13.7 per cent in the previous year at constant currency, benefiting from the normalisation in China and increased productivity in other countries. However, operating income remained flat at CHF 423 million, the company said in a media release.

Net financial expenses for the group climbed to CHF 32 million in H1 FY23 from CHF 20 million in the prior year, largely due to short-term higher interest rates and increased debt. Basic earnings per share held steady at CHF 1.47, while on an adjusted basis, earnings per share saw a marginal rise of 1.9 per cent to CHF 1.64.

On the investment front, the group's net capital expenditure was CHF 140 million, compared to CHF 150 million in the prior year.

Frankie Ng, CEO of SGS, said: “We are very pleased with our robust performance in H1. This reflects the strength of our business model and efficient execution by our global network which has delivered significant cash flow generation. Strong momentum is expected to continue into H2.

“The expansion in our focus areas of connectivity and knowledge is accelerating our growth, while investing in our ‘platform for growth’ is securing our long-term returns. Global supply chains are evolving, which requires more risk evaluation, more regulation, and significant public and private investment. All of these factors support the long-term growth prospects of SGS.”

ALCHEMPro News Desk (DP)