BUREAU VERITAS - Strong start to the year; 2024 outlook confirmed
PRESS RELEASE
Neuilly-sur-Seine, France – April 25, 2024
Strong start to the year; 2024 outlook
confirmed
Q1 2024 Key figures1
- Revenue of EUR 1,439.5 million in
the first quarter of 2024, up 2.5% year-on-year and up 8.0%
organically
- Strong organic growth from Industry
+16.3%, Certification +13.7%, Marine & Offshore +13.6%,
compared to the first quarter of 2023; growth of +6.1% for Consumer
Products Services, +3.6% for Buildings & Infrastructure and
+3.2% for Agri-food & Commodities
- The scope effect was a positive
0.1%, reflecting bolt-on acquisitions offset by a small
disposal
- The currency impact was negative by
5.6% mainly due to the depreciation of some emerging countries’
currencies against the euro
Q1 2024 Highlights
- New strategy LEAP | 28, announced
on March 20, 2024, to deliver a step change in growth and
performance, built around three pillars: Focused Portfolio,
Performance-led execution and Evolved People model
- Strong growth in every region
(Americas, Middle East, Africa, Asia-Pacific and Europe),
outperforming many underlying markets
- Growth momentum maintained for
sustainability services – both transition services and Green
Objects - across the entire portfolio
- In line with the LEAP | 28
strategy, the Consumer Products Services business line completed
the acquisition of three bolt-on companies in South and North-East
Asia, expanding the Group’s portfolio into new sectors and
diversifying its geographical coverage, adding an annualized
revenue of c. EUR 20 million
- To execute the share buyback
program announced in March at the Capital Markets Day, an
acquisition of c. 0.8% of the Group’s own shares on April 5, 2024,
was completed under the Wendel placement
- Assignment of the first long-term
credit rating of Bureau Veritas with a A3 rating from Moody’s, with
“stable” outlook, which reflects the Group’s strong financial
structure and competitive advantage
- New recognition of Bureau Veritas’
CSR commitment by several non-financial rating agencies, including
a first ranking in Sustainalytics. Bureau Veritas also joins the
United Nations Global Compact.
2024 Outlook confirmed
Leveraging a healthy and growing sales pipeline,
high customer demand for ‘new economy services’ and strong
underlying market growth, Bureau Veritas expects to deliver for the
full year 2024:
- Mid-to-high
single-digit organic revenue growth;
- Improvement in
adjusted operating margin at constant exchange rates;
- Strong cash
flow, with a cash conversion2 above 90%.
The Group expects H2 organic revenue growth
above H1 given stronger comparables in Q2.
Hinda Gharbi, Chief Executive Officer,
commented:
“In the first quarter of the year, we launched
our LEAP I 28 strategy both internally and to our investors. Our
commitment to sustainable organic growth, active portfolio
management through M&A and yearly margin improvement is in line
with our ambition to deliver double-digit shareholder returns.
We have started our strategy execution and
Bureau Veritas maintained its growth trajectory with broad organic
growth of 8.0% supported by strong market trends in the first
quarter of 2024.
In addition, I am pleased to announce the first
long-term credit rating of Bureau Veritas. The decision by Moody’s
to assign a A3 rating, with stable outlook, confirms our strong
financial structure, a leading market position, and a solid
business model.
Looking ahead, we confirm our outlook for
2024.”
Q1 2024 KEY REVENUE FIGURES
|
|
|
GROWTH |
IN EUR MILLION |
Q1 2024 |
Q1 2023 |
CHANGE |
ORGANIC |
SCOPE |
CURRENCY |
Marine & Offshore |
122.1 |
113.1 |
+8.0% |
+13.6% |
- |
(5.6)% |
Agri-Food & Commodities |
297.3 |
302.7 |
(1.8)% |
+3.2% |
- |
(5.0)% |
Industry |
295.6 |
295.3 |
+0.1% |
+16.3% |
(2.5)% |
(13.7)% |
Buildings & Infrastructure |
441.0 |
431.6 |
+2.2% |
+3.6% |
- |
(1.4)% |
Certification |
117.4 |
106.9 |
+9.8% |
+13.7% |
- |
(3.9)% |
Consumer Products |
166.1 |
154.9 |
+7.2% |
+6.1% |
+5.4% |
(4.3)% |
Total Group revenue |
1,439.5 |
1,404.5 |
+2.5% |
+8.0% |
+0.1% |
(5.6)% |
Revenue in the first quarter of 2024 amounted to
EUR 1,439.5 million, a 2.5% increase compared with Q1 2023. Organic
growth was 8.0%, benefiting from solid underlying trends for most
businesses.
This is reflected as follows by business:
-
More than a third of the portfolio delivered double-digit organic
revenue growth in the quarter, benefiting from increasing
decarbonization trends and energy transition for Marine &
Offshore, and Industry. The rising demand for Sustainability and
ESG-driven services are seen in the growth momentum of
Certification.
-
An eighth of the portfolio delivered mid-to-high single-digit
organic revenue growth (up 6.1%). The growth in the Consumer
Products Services activities was led by most geographies. The
business benefited from the organic growth coming from recent
acquisitions as the Group executes its strategy of geography,
sector, and services diversification in this market.
-
Half of the portfolio including Buildings & Infrastructure and
Agri-Food & Commodities achieved low single-digit organic
revenue growth (up 3.6% and 3.2% respectively). The growth was
driven by solid underlying trends.
By geography, activities in the Americas were
strong (27% of revenue; up 8.0% organically), led by a double-digit
increase in Latin America. Europe (36% of revenue; up 5.6%
organically) was primarily led by high activity levels in Southern
and Eastern Europe. Business in Asia-Pacific (27% of revenue; up
7.0% organically) benefited from a recovery in China, while strong
growth was delivered in South-East Asian countries as well as in
Australia. Finally, activity was also strong in Africa and the
Middle East (10% of revenue; up 19.9% organically) primarily driven
by Buildings & Infrastructure and energy projects in the Middle
East.
The scope effect was a positive 0.1%, reflecting
bolt-on acquisitions realized in the past few quarters offset by
the impact of a small disposal which was made in the third quarter
of 2023.
Currency fluctuations had a negative impact of
5.6%, mainly due to the depreciation of some emerging countries’
currencies against the euro (in Latin America essentially).
SOLID FINANCIAL POSITION
At the end of March 2024, the Group's adjusted
net financial debt slightly increased, with cash and cash
equivalent levels materially unchanged compared with the levels at
December 31, 2023. The Group also had in place EUR 600 million of
undrawn committed credit lines. Bureau Veritas has a solid
financial structure with the bulk of its maturities beyond 2025 and
100% at fixed interest rates.
2024 SHARE BUYBACK PROGRAM
To execute the EUR 200 million share buyback
program announced on March 20, 2024, an acquisition of c.0.8% of
the Group’s own shares, or the equivalent of c. EUR 100 million on
April 5, 2024, was completed under the Wendel placement. The Group
will purchase the remainder in 2024.
In accordance with the purpose of the share
buyback program approved by the Annual General Meeting, the shares
bought back will be used for cancellation purposes and for any
other purposes authorized by the Company’s shareholders at the
Annual General Meeting of June 22, 2023.
A3 FIRST LONG-TERM CREDIT RATING BY
MOODY’S
Bureau Veritas announces that it has been
assigned on April 24, 2024 its first Long-Term Credit rating of A3
from Moody’s, with a “stable” outlook.
According to Moody’s, the A3 rating is primarily
supported by the Group:
- Leading market
position, protected by high barriers to entry, and by its well
diversified business model;
-
Long track record of positive organic growth through the
cycle;
-
Supportive long-term fundamentals of the TIC (Testing, Inspection
and Certification) market;
-
Conservative financial policies underpinned by large cash reserves
and balanced capital allocation between Capex spending,
acquisitions and shareholder distributions;
-
Track record of solid free cash flow (FCF) generation and strong
liquidity.
This long-term credit rating will help Bureau
Veritas in further diversifying its sources of funding, enhancing
access to capital markets, and managing debt maturities in line
with the Group’s strategy. The full rating report is available on
moodys.com.
FOCUSED PORTFOLIO
In line with the LEAP | 28 strategy of active
portfolio management and in order to focus the portfolio on market
leadership positions, Bureau Veritas has activated an M&A
program to develop a new market stronghold in Consumer Technology
Testing. To that effect the Group signed definitive agreements to
acquire three players to expand its position in testing and
certification services for the Electrical and Electronics consumer
products segment in South and North-East Asia, for a combined
revenue of c. EUR 20 million in 2023.
|
ANNUALIZED REVENUE |
COUNTRY/ AREA |
SIGNING DATE |
FIELD OF EXPERTISE |
Consumer Products Services |
|
OneTech Corp. |
EUR 12m |
South Korea |
March 2024 |
Testing and certification services for Electrical and Electronics
consumer products |
Kostec Co., Ltd |
EUR 5m |
South Korea |
March 2024 |
Testing and certification services for Electrical and Electronics
consumer products |
Hi Physix Laboratory India Pvt. |
EUR 3m |
India |
March 2024 |
Electrical and electronics products testing and certification
services laboratory |
For more information, the press release is
available by clicking
here.
CORPORATE SOCIAL RESPONSIBILITY COMMITMENTS
-
Bureau Veritas joins the United Nations Global Compact
On February 26, 2024, Bureau Veritas announced
that it joined the United Nations Global Compact, the world’s
largest initiative related to corporate social responsibility
(CSR). With this move, the Group confirms its commitment to abiding
by the Ten Principles of the voluntary initiative, which seeks to
advance universal principles on human rights, labor, environment,
and anti-corruption.
-
Strong recognition by non-financial rating agencies
On March 7, 2024, the Group was ranked first in
its category by Morningstar Sustainalytics. With a 9.1 rating, the
Group ranks at the first position of the ‘Research and Consulting’
category out of 72 companies and is now classified in the
“Negligible risk” category.
-
Corporate Social Responsibility (CSR) key indicators
|
UNITED NATIONS’ SDGS |
Q1 2024 |
Q1 2023 |
2028 TARGET |
ENVIRONMENT / NATURAL CAPITAL |
|
|
|
|
CO2 emissions (scope 1 & 2, 1,000 tons)3 |
#13 |
150 |
146 |
107 |
SOCIAL & HUMAN CAPITAL |
|
|
|
|
Total Accident Rate (TAR)4 |
#3 |
0.28 |
0.27 |
0.23 |
Gender balance in senior leadership (EC-II)5 |
#5 |
28% |
30% |
36% |
Number of learning hours per employee (per year)6 |
#8 |
2.8 |
4.2 |
40.0 |
GOVERNANCE |
|
|
|
|
Proportion of employees trained to the Code of Ethics |
#16 |
98.5% |
96.6% |
99.0% |
OPERATIONAL APPOINTMENTS
-
Khurram Majeed appointed Executive Vice- President, Commodities,
Industry and Facilities, Middle East, Caspian and Africa
On April 1st, 2024, Khurram Majeed became
Executive Vice-President, Commodities, Industry and Facilities, for
the Middle East, Caspian and Africa. With this role, the Group aims
to leverage the full potential of this growing market opportunities
specific to the Middle East, Caspian and Africa region. This is a
dynamic region undergoing several evolutions in natural resources,
construction, and industrial spaces. This new organization will
also allow Bureau Veritas to facilitate solutions scaling and
resources utilization across the region.
For more information, the press
release is available by clicking
here.
2024 OUTLOOK CONFIRMED
Leveraging a healthy and growing sales pipeline,
high customer demand for ‘new economy services’ and strong
underlying market growth, Bureau Veritas expects to deliver for the
full year 2024:
- Mid-to-high
single-digit organic revenue growth;
- Improvement in
adjusted operating margin at constant exchange rates;
- Strong cash
flow, with a cash conversion7 above 90%.
The Group expects H2 organic revenue growth
above H1 given stronger comparables in Q2.
LEAP | 28 STRATEGY
On March 20, 2024, Bureau Veritas announced its
new strategy, LEAP | 28, with the following ambitions:
2024-2028 |
|
GROWTH CAGR |
High-single digit total revenue
growth8 |
With: |
Organic: mid-to-high single digit |
And: |
M&A acceleration and portfolio high-grading |
MARGIN |
Consistent adjusted operating margin
improvement8 |
EPS CAGR8 + DIVIDEND
YIELD |
Double digit returns |
CASH |
Strong cash conversion9:
above 90% |
Over the period 2024-2028, the use of Free Cash
Flow generated from the Group’s operations will be balanced between
Capital Expenditure (Capex), Mergers & Acquisitions (M&A)
and shareholder returns (dividend):
ASSUMPTIONS |
|
CAPEX |
Around 2.5-3.0% of Group revenue |
M&A |
M&A acceleration |
DIVIDEND |
Pay-out of 65% of Adjusted Net Profit |
LEVERAGE |
Between 1.0x-2.0x by 2028 |
Q1 2024 BUSINESS REVIEW
MARINE & OFFSHORE
IN EUR MILLION |
Q1 2024 |
Q1 2023 |
CHANGE |
ORGANIC |
SCOPE |
CURRENCY |
Revenue |
122.1 |
113.1 |
+8.0% |
+13.6% |
- |
(5.6)% |
The Marine & Offshore business delivered a
strong 13.6% organic revenue increase in the first quarter of 2024
with the following trends:
- A solid
double-digit increase in New Construction (40% of
divisional revenue), supported by a strong orderbook made of
various types and sizes of vessels;
- Core
In-service activity (47% of divisional revenue) posted a
double-digit growth, benefiting from a combination of price
increases and volume growth due to the increase in the number of
classed vessels and from the ageing of the fleet. At March end, the
fleet classed by Bureau Veritas comprised of 11,823 ships,
representing 150.8 million of Gross Register Tonnage (GRT);
- Services (13% of
divisional revenue, including Offshore) recorded a mid-single-digit
growth, and were driven by good commercial development of non-class
services, including consulting services around ship energy
efficiency.
New orders totaled 2.8 million gross tons at the
end of March 2024, up 21% from March 2023, in a stable shipping
market. This brings the order book to a healthy 23.3 million gross
tons at the end of the quarter, up 9.7% year on year.
Sustainability achievements
During this first quarter of 2024, Bureau
Veritas has awarded the World’s first prototype certification for
Solarduck's Floating Offshore Solar Solution. Throughout the
certification process, Bureau Veritas meticulously evaluated the
prototype against rules and standards, including guidance note
NI631 on the Certification Scheme for Marine Renewable Energy
Technologies. These assessments covered various aspects such as the
floating structure, mooring system, stability analysis, materials,
and electrical safety systems. Bureau Veritas also delivered a
certificate to a valve manufacturer for pioneering hydrogen valve
technology.
AGRI-FOOD & COMMODITIES
IN EUR MILLION |
Q1 2024 |
Q1 2023 |
CHANGE |
ORGANIC |
SCOPE |
CURRENCY |
Revenue |
297.3 |
302.7 |
(1.8)% |
+3.2% |
- |
(5.0)% |
The Agri-Food & Commodities business
achieved organic revenue growth of 3.2% in the first quarter of
2023, with a mixed growth dynamic of the different activities.
The Oil & Petrochemicals
segment (O&P, 32% of divisional revenue) recorded once again a
mid-single-digit organic growth, despite the competitive nature of
this business in some geographies such as Asia. This strong
performance was driven by (i) market share gains in Europe; (ii) a
stronger activity level in the Middle East from trading routes
shifts and new laboratories starts; (iii) a sustained growth
traction from non-trade activities (Oil Condition Monitoring, bio
and sustainable fuels for the marine and aviation fields). This
includes a solid ramp-up of a large contract around lubrication
fuels for a key player of the Automotive Industry.
The Metals & Minerals
segment (M&M, 31% of divisional revenue) achieved a stable
performance in the first quarter. The Upstream business (which
represents two-third of M&M) faced unfavorable comparables as
customers remained cautious on investments in view of the current
macro conditions. The activity however benefited from a very good
momentum for precious metals such as gold and from the Group’s
on-site laboratories strategy, with a new win in Latin America.
Trade activities performed well owing to a favorable mix and volume
combination for some metals such as copper or zinc.
In Q1 2024, Agri-Food (23% of
divisional revenue) grew mid-single digit on an organic basis, led
by a high-single digit performance in the Agri business. Europe led
the pack, growing strongly thanks to solid developments in key
countries such as Italy and Portugal or along the Danube corridor.
The Food business grew mid-single digit organically, benefited from
a good traction in Asia and the recovery of the Australian
activities. The Middle East region continued to show strong
performance led by favorable prices and volumes growth as well as
the ramp-up of new laboratories.
Government services (14% of the
divisional revenue) delivered a slightly negative organic growth in
the quarter due mainly to unfavorable comparables and temporary
volume reductions from the ending of some contracts. These were
partly offset by the good performance of Single Window contracts in
some African countries. The pipeline of new opportunities remains
solid.
Sustainability achievements
In the first quarter of 2024, Bureau Veritas
delivered several sustainability services to its customers ranging
from services around commodities emission fugitive, sustainable
aviation fuel or traceability for wood products.
INDUSTRY
IN EUR MILLION |
Q1 2024 |
Q1 2023 |
CHANGE |
ORGANIC |
SCOPE |
CURRENCY |
Revenue |
295.6 |
295.3 |
+0.1% |
+16.3% |
(2.5)% |
(13.7)% |
Industry continued to perform well in the first
quarter of 2024 with an organic growth of 16.3%, with growth in
most markets and geographies.
By market, Power &
Utilities (12% of divisional revenue) growth was moderated
by unfavorable comparables. Business declined in Latin America
reflecting the decision to exit low profitable contracts (in Brazil
and Chili). In Europe, the nuclear power generation segment was
fueled by the ramp-up of QA/QC inspection projects in the UK while
suffering from the negative impact of the end of EPR Flamanville 3
project in France.
Renewable Power Generation activities (solar,
wind, hydrogen) continued to accelerate with high double-digit
organic performance delivered across most geographies. This was led
by the US, where the Group continued to expand its renewables power
(solar/wind) business, with many small contracts wins as it
benefited from early opportunities linked to the Inflation
Reduction Act investments. Opportunities around hydrogen, carbon
capture and storage projects are also promising. During the period,
the Group signed a partnership with Inthy, a renewable energy and
hydrogen producer, and the Bourgogne Franche-Comté region of
France, to launch Europe's first large-scale hydrogen storage test
site.
In Oil & Gas (33% of
divisional revenue), the activity remained buoyant, up double-digit
organically in the quarter. Both Capex and Opex services strongly
increased across most geographies as they continue to benefit from
the conversion of a solid sales pipeline and a healthy backlog. The
activity was particularly dynamic in the US, Asia and
Australia.
Industry Products Certification
(17% of divisional revenue) delivered high-single-digit organic
revenue growth led by price increases and growing activity for
Pressure & Welding, and Electromechanical & Advanced
Technologies sub-segments. Growth was strong in the Asia Pacific
and Middle East regions.
Elsewhere, the Environmental
Testing business (9% of divisional revenue) performed
well, with the remediation works in Canada benefiting from
favorable weather conditions in the first quarter.
Sustainability achievements
In the first quarter of 2024, the Group was
awarded a contract to deliver integrated QA/QC services for the
construction of a 493 MW El Dorado Solar facility with TriGlobal
Energy in the US. The Group was also selected for the renewables
equipment supervision for a Chinese energy company.
BUILDINGS &
INFRASTRUCTURE
IN EUR MILLION |
Q1 2024 |
Q1 2023 |
CHANGE |
ORGANIC |
SCOPE |
CURRENCY |
Revenue |
441.0 |
431.6 |
+2.2% |
+3.6% |
- |
(1.4)% |
The Buildings & Infrastructure (B&I)
business delivered an organic revenue growth of 3.6% in the first
quarter, fueled by Europe, North America, Asia Pacific and by the
Middle East.
During the period, the building-in
service activity outperformed the
construction-related activities.
The Americas region (27% of
divisional revenue) delivered solid growth. Bureau Veritas US
operations recorded mid-single digit organic revenue growth,
benefitting from its diversified portfolio of activities.
Double-digit growth was maintained for the data center
commissioning business fueled by continued geographical expansion.
Code compliance grew high-single-digit organically thanks to
housing expansion in southern states. In Latin America, the Group
delivered solid growth in both Brazil and Chile offsetting the
contraction from B&I activity termination in Argentina.
Growth in Europe (51% of
divisional revenue) was robust overall, up 4.9% organically. Strong
growth was delivered in Italy benefiting from infrastructure spend
thanks to the National Recovery and Resilience Plan (NRRP). In
France, Opex services, representing three quarters of the country’s
revenue, grew above the country average thanks to positive pricing
and newly introduced services. The Capex-related activities grew
slightly in a declining market, as it leverages its different
served markets. This business is weighted more towards
infrastructure and public works (including the Olympic Games
2024).
The Asia Pacific region (18% of
divisional revenue) recorded a 5.1% organic revenue increase led by
high growth in South and Southeastern Asian countries and
Australia. In China, activity remained moderate, with solid trends
in energy-related construction activity, boosted by the energy
transition, but weak spending on transport infrastructure
projects.
Lastly, in the Middle East &
Africa region (4% of divisional revenue), the Group
continued to deliver double-digit organic revenue growth led by
Saudi Arabia, benefiting from the development of numerous
megaprojects.
Sustainability achievements
The Group continues to provide decarbonization
solutions as asset owners transition towards a building sector
aligned with long term goals of the Paris Agreement in 2015. In the
first quarter, in Spain, the Group was selected to carry out Energy
Audits (EED) mandatory compliance on all shops for a large European
retailer. The Group also performed an environmental assessment of
40 sites in France for a leading retailer, through soil pollution
audits.
CERTIFICATION
IN EUR MILLION |
Q1 2024 |
Q1 2023 |
CHANGE |
ORGANIC |
SCOPE |
CURRENCY |
Revenue |
117.4 |
106.9 |
+9.8% |
+13.7% |
- |
(3.9)% |
Once again, the Certification business posted a
strong performance over the first quarter of 2024, recording a
13.7% growth on an organic basis. This was achieved through good
volumes growth, owing to favorable market conditions, and robust
price increases. All geographies grew organically, with the
Americas, Middle East & Africa and Asia leading the pack.
QHSE & Specialized Schemes
solutions (48% of the divisional revenue) grew high-single
digit, thanks to the recertification cycle occurring this year for
some standards. It supported the robust performance in QHSE
solutions, especially in Europe where it recorded a high organic
growth thanks to Bureau Veritas’ leading position and broad
coverage. As an illustration, the Group recently signed an
exclusive multi-year framework agreement with a leading beverage
industry player for ISO 9001 and ISO 14001 schemes across all
European operations. This agreement also covers environmental
management system & food safety schemes certification.
Specialized Schemes contributed strongly to the growth. Volumes
benefited from strong tailwinds linked to the recertification
requirements around specific schemes in the automotive
industry.
Sustainability-related solutions &
Digital (Cyber) certification activities (31% of
divisional revenue) also grew double-digit on an organic basis,
benefiting from the excellent traction around environmental and
carbon services, food sustainability and increasing demand for
cybersecurity assurance. In France, the public outsourcing contract
with the Direction Générale de l’Alimentation providing inspection
services around food safety is ramping up.
Other solutions, including
Training (21% of the divisional revenue) recorded a
low-single-digit revenue contraction in Q1 2024, despite the
excellent performance of its Spanish operations.
Sustainability achievements
In the first quarter of 2024, Bureau Veritas was
granted a key contract by a large online retailer, covering
training and advisory solutions pertaining to the development of
environmental procedures in 13 European countries. The scope of
services to be rolled-out will encompass different themes such as
air quality and GHG emissions, waste and wastewater as well as
biodiversity.
In the US, the Group also delivered FSC
(Forestry Stewardship Council) label certification services to
ensure sustainable practices in the forest management services
operated by the Maryland Department of Natural Resources.
CONSUMER PRODUCTS SERVICES
IN EUR MILLION |
Q1 2024 |
Q1 2023 |
CHANGE |
ORGANIC |
SCOPE |
CURRENCY |
Revenue |
166.1 |
154.9 |
+7.2% |
+6.1% |
+5.4% |
(4.3)% |
The Consumer Products Services division posted a
6.1% organic revenue performance over the first quarter of 2024,
with varying geographical and service trends boosted by early
seasons shipments.
Asia is progressively recovering, especially in
China, while the Americas (especially Latin America) and the Middle
East continue to benefit from the geographical, sector and services
diversification strategy.
Softlines, Hardlines & Toys
(46% of divisional revenue) saw high-single digit organic growth in
the first quarter of 2024, due to the end of destocking and early
shipments, in response to logistics delays from the Red Sea
shipping lanes disruptions.
Healthcare (including Beauty and
Household) (9% of divisional revenue) delivered solid
double-digit organic growth in Q1. This performance is driven
by global accounts, especially for Advanced Testing Laboratory
(ATL) and Galbraith Laboratories Inc. with a promising sales
pipeline (both companies acquired in 2022 in the US).
Supply Chain & Sustainability
services (14% of divisional revenue) recorded a very good
double-digit performance accreditable to the restart of test
activities and to the shipment growth.
Technology (31% of divisional
revenue) saw a mid-single-digit contraction on the first quarter of
2024, affected by a global decrease in demand for electrical and
mobility equipment.
The Group pursued its geographical
diversification strategy to build resilience and unlock growth for
the consumer Tech sub-segment in the first quarter of 2024.
Realizing three acquisitions (OneTech Corp., Kostec Co. and Hi
Physix Laboratory India Pvt.) to strengthen its position in the
Electrical & Electronics consumer products testing in South and
North-East Asia. The acquisition of ANCE, announced in February
2024, also allows Bureau Veritas to enter a new market and will
serve as a springboard for expansion into North America, Mexico
being one of the fastest growing exporters towards the USA.
Sustainability achievements
During the first quarter of 2024, Bureau Veritas
was awarded a contract to deliver social audits for the social
responsibility program expansion of a large online retailer in more
than 800 additional locations across Asia. The Group also was
awarded a contract to realize environmental audit and sustainable
claims services for an American luxury department store chain.
PRESENTATION
- Q1 2024 revenue
will be presented on Thursday, April 25, 2024, at 6:00 p.m. (Paris
time)
- A video conference
will be webcast live. Please connect to: Link to video
conference
- The presentation
slides will be available on:
https://group.bureauveritas.com/investors/financial-information/financial-results
- All supporting
documents will be available on the website
- Live dial-in
numbers:
- France: +33 (0)1 70
37 71 66
- UK: +44 (0) 33 0551 0200
- US: +1 786 697
3501
- International: +44
(0) 33 0551 0200
- Password: Bureau
Veritas
2024 FINANCIAL CALENDAR
- Shareholder’s
Meeting: June 20, 2024
- H1 2024 Results:
July 26, 2024 (pre-market)
- Q3 2024 Revenue:
October 23, 2024 (post market)
ABOUT BUREAU VERITAS
Bureau Veritas is a world leader in inspection,
certification, and laboratory testing services with a powerful
purpose: to shape a world of trust by ensuring responsible
progress. With a vision to be the preferred partner for customers’
excellence and sustainability, the company innovates to help them
navigate change.Created in 1828, Bureau Veritas’ 83,000 employees
deliver services in 140 countries. The company’s technical experts
support customers to address challenges in quality, health and
safety, environmental protection, and sustainability. Bureau
Veritas is listed on Euronext Paris and belongs to the CAC 40 ESG,
CAC Next 20, SBF 120 indices and is part of the CAC SBT 1.5° index.
Compartment A, ISIN code FR 0006174348, stock symbol: BVI.For more
information, visit www.bureauveritas.com, and follow us on LinkedIn
and X/Twitter.
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this press release is genuine at www.wiztrust.com. |
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ANALYST/INVESTOR CONTACTS |
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MEDIA CONTACTS |
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Laurent Brunelle |
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Anette Rey |
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+33 (0)1 55 24 76 09 |
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+ 33 (0)6 69 79 84 88 |
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laurent.brunelle@bureauveritas.com |
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anette.rey@bureauveritas.com |
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Colin Verbrugghe |
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+33 (0)1 55 24 77 80 |
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colin.verbrugghe@bureauveritas.com |
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Karine Ansart+33 (0)1 55 24 76
19karine.ansart@bureauveritas.com |
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This press release (including the appendices)
contains forward-looking statements, which are based on current
plans and forecasts of Bureau Veritas’ management. Such
forward-looking statements are by their nature subject to a number
of important risk and uncertainty factors such as those described
in the Universal Registration Document (“Document d’enregistrement
universel”) filed by Bureau Veritas with the French Financial
Markets Authority (“AMF”) that could cause actual results to differ
from the plans, objectives and expectations expressed in such
forward-looking statements. These forward-looking statements speak
only as of the date on which they are made, and Bureau Veritas
undertakes no obligation to update or revise any of them, whether
as a result of new information, future events or otherwise,
according to applicable regulations.
APPENDIX 1: Q1 2024 REVENUE BY
BUSINESS
IN EUR MILLION |
Q1 2024 |
Q1 2023 |
CHANGE |
ORGANIC |
SCOPE |
CURRENCY |
Marine & Offshore |
122.1 |
113.1 |
+8.0% |
+13.6% |
- |
(5.6)% |
Agri-Food & Commodities |
297.3 |
302.7 |
(1.8)% |
+3.2% |
- |
(5.0)% |
Industry |
295.6 |
295.3 |
+0.1% |
+16.3% |
(2.5)% |
(13.7)% |
Buildings & Infrastructure |
441.0 |
431.6 |
+2.2% |
+3.6% |
- |
(1.4)% |
Certification |
117.4 |
106.9 |
+9.8% |
+13.7% |
- |
(3.9)% |
Consumer Products |
166.1 |
154.9 |
+7.2% |
+6.1% |
+5.4% |
(4.3)% |
Total Group revenue |
1,439.5 |
1,404.5 |
+2.5% |
+8.0% |
+0.1% |
(5.6)% |
APPENDIX 2: DEFINITION OF ALTERNATIVE
PERFORMANCE INDICATORS AND RECONCILIATION WITH IFRS
The management process used by Bureau Veritas is
based on a series of alternative performance indicators, as
presented below. These indicators were defined for the purposes of
preparing the Group’s budgets and internal and external reporting.
Bureau Veritas considers that these indicators provide additional
useful information to financial statement users, enabling them to
better understand the Group’s performance, especially its operating
performance. Some of these indicators represent benchmarks in the
testing, inspection and certification (“TIC”) business and are
commonly used and tracked by the financial community. These
alternative performance indicators should be seen as a complement
to IFRS-compliant indicators and the resulting changes.
GROWTH
Total revenue growth
The total revenue growth percentage measures
changes in consolidated revenue between the previous year and the
current year. Total revenue growth has three components:
- organic
growth;
- impact of changes
in the scope of consolidation (scope effect);
- impact of changes
in exchange rates (currency effect).
Organic growth
The Group internally monitors and publishes
“organic” revenue growth, which it considers to be more
representative of the Group’s operating performance in each of its
business sectors.
The main measure used to manage and track
consolidated revenue growth is like-for-like, or organic growth.
Determining organic growth enables the Group to monitor trends in
its business excluding the impact of currency fluctuations, which
are outside of Bureau Veritas’ control, as well as scope effects,
which concern new businesses or businesses that no longer form part
of the business portfolio. Organic growth is used to monitor the
Group’s performance internally.
Bureau Veritas considers that organic growth
provides management and investors with a more comprehensive
understanding of its underlying operating performance and current
business trends, excluding the impact of acquisitions, divestments
(outright divestments as well as the unplanned suspension of
operations – in the event of international sanctions, for example)
and changes in exchange rates for businesses exposed to foreign
exchange volatility, which can mask underlying trends.
The Group also considers that separately
presenting organic revenue generated by its businesses provides
management and investors with useful information on trends in its
industrial businesses, and enables a more direct comparison with
other companies in its industry.
Organic revenue growth represents the percentage
of revenue growth, presented at Group level and for each business,
based on constant scope of consolidation and exchange rates over
comparable periods:
- constant scope of
consolidation: data are restated for the impact of changes in the
scope of consolidation over a 12-month period;
- constant exchange
rates: data for the current year are restated using exchange rates
for the previous year.
Scope effect
To establish a meaningful comparison between
reporting periods, the impact of changes in the scope of
consolidation is determined:
- for acquisitions
carried out in the current year: by deducting from revenue for the
current year revenue generated by the acquired businesses in the
current year;
- for acquisitions
carried out in the previous year: by deducting from revenue for the
current year revenue generated by the acquired businesses in the
months in the previous year in which they were not
consolidated;
- for disposals and
divestments carried out in the current year: by deducting from
revenue for the previous year revenue generated by the disposed and
divested businesses in the previous year in the months of the
current year in which they were not part of the Group;
- for disposals and
divestments carried out in the previous year: by deducting from
revenue for the previous year revenue generated by the disposed and
divested businesses in the previous year prior to their
disposal/divestment.
Currency effect
The currency effect is calculated by translating
revenue for the current year at the exchange rates for the previous
year.
1 Alternative performance indicators are
presented, defined and reconciled with IFRS in appendix 2 of this
press release.
2 (Net cash generated from operating activities
– lease payments + corporate tax)/adjusted operating profit.
3 Indicator calculated over 12 rolling months.4
TAR: Total Accident Rate (number of accidents with and without lost
time x 200,000/number of hours worked).5 Proportion of women from
the Executive Committee to Band II (internal grade corresponding to
a management or executive management position) in the Group (number
of women on a full-time equivalent basis in a leadership
position/total number of full-time equivalents in leadership
positions).6 Indicator calculated over a 3-month period compared to
a 12-month period for 2028 target values.7 (Net cash generated from
operating activities – lease payments + corporate tax)/adjusted
operating profit
8 At constant currency.
9 (Net cash generated from operating activities
– lease payments + corporate tax)/adjusted operating profit.
- 2024 04 25_Press Release_Q1 2024 Revenue_VDef
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