FX.co ★ SGS Q1 Sales Down, Organic Sales Rise; Confirms Outlook For FY24, Mid-term

SGS Group, a Swiss firm specializing in inspection, verification, testing, and certification, announced its first-quarter sales figures. Despite a decrease of 2.1 percent from the previous year, totaling at 1.58 billion Swiss francs compared to last year's 1.61 billion francs, the group reported an organic sales growth of 7.1 percent. Experts put the decrease down to a negative currency effect of 8.6 percent.

The quarter's organic sales growth was at the upper end of predictions and was recorded across all regions. Moreover, a 7.1 percent growth was reported in Testing & Inspection sales, reaching 1.41 billion francs, while Business Assurance sales also saw a rise, increasing by 7.6 percent.

For the fiscal 2024 forecast, SGS aims to maintain a mid to high single-digit organic growth while looking to improve the adjusted operating income margin on sales.

In its mid-term plans, the firm disclosed that its 2027 Strategy will pivot toward a growth in top and bottom lines. Over the course of the next four years, the company intends to sustain an organic sales growth rate annually between 5 to 7 percent. It also aspires to improve significantly by at least 1.5 percentage points in the adjusted operating income margin on sales by 2027. The expectation is also to exceed 50 percent in cash conversion by 2027.

SGS's CEO Geraldine Picaud expressed confidence in the implementation of the 2027 Strategy to sustain this growth momentum. She cited streamlining processes and generating strong financial performance as a vital part of this plan and expressed optimism in the delivery of promises, crediting the experienced global team's energy and passion.