SGS delivered H1 results broadly in line with expectations, showing a better-than-expected organic growth (+5.6% vs +4.9% cons), but a touch light on margins (14.6% at cc vs 14.8% cons). The bottom line is mainly affected by exceptional items (c. CHF50m restructuring charge in IND and provisions for cumulative overstated revenues reported in prior periods in Brazil). Key highlights: Revenue growth of +8.5% to CHF3.31bn (+5.6% org, +0.9% acq, +2.0% FX) Increase in adjusted operating income of
18 Jul 2018
Sound organic growth in H1, upgrades needed to support current valuation
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Sound organic growth in H1, upgrades needed to support current valuation
SGS delivered H1 results broadly in line with expectations, showing a better-than-expected organic growth (+5.6% vs +4.9% cons), but a touch light on margins (14.6% at cc vs 14.8% cons). The bottom line is mainly affected by exceptional items (c. CHF50m restructuring charge in IND and provisions for cumulative overstated revenues reported in prior periods in Brazil). Key highlights: Revenue growth of +8.5% to CHF3.31bn (+5.6% org, +0.9% acq, +2.0% FX) Increase in adjusted operating income of