SGS posts 2023 1st half results

July 24, 2023

IIOA member SGS reports, ‘Strong organic growth momentum in H1’ as it posts its H1 2023 results

Revenue for the first half of 2023 was CHF 3.284 billion, up 8.5% at constant currency, 8.1% organic growth, overall actual up 0.9%.

With the increased interest in services providing sustainability solutions, SGS report that, ‘47.4% revenue now generated by sustainability solutions, under our internal sustainability solutions framework’.

Within the overall results, the Knowledge division saw revenue of 357 m CHF, a 14.4% increase at constant currency.

SGS notes for the Knowledge division:

‘Management System Certification grew in double digits organically slightly below the divisional average, further consolidating our market leadership position. Growth was driven by volume and price increases in all segments, particularly in medical devices, information security and food.

Customized Audits organic revenue growth increased at a materially higher rate than the divisional average benefiting from double-digit growth in supply chain audits, social audits and Environment, Social and Governance (ESG) assurance services.

Consulting organic revenue growth was above the divisional average driven by increased demand for aviation and consulting services, ongoing market expansion in Asia as well as additional contract wins from SGS Maine Pointe.

Training Academy grew organically slightly below the divisional average driven by an increased demand in ESG and information technology-related training programs, as well as a return to classroom-based training.’

One note on innovation was the signing of a’ ‘first contract to audit an AI Management System in anticipation of the release of the upcoming ISO/IEC 42001.

Of the overall results, SGS states, ‘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, Knowledge and Health & Nutrition 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’.

The Outlook for 2023 is stated as, ‘Mid to high single-digit organic growth’.

The SGS 2023 Half Year Results full report can be viewed here.