BUREAU VERITAS - Solid organic revenue growth in the third quarter;
2023 outlook confirmed
PRESS RELEASE
Neuilly-sur-Seine, France – October 25, 2023
Solid organic revenue growth in the third
quarter;2023 outlook confirmed
Q3 2023 Key
Figures1
- Revenue of EUR 1,423.8 million in
the third quarter of 2023, up 6.1% at constant currency, of which
5.8% organic
- Strong organic growth from Marine
& Offshore +13.4%, Industry +16.2% and Certification +11.7%
compared to the third quarter of 2022; growth of +2.6% for
Agri-Food & Commodities; and flat organic growth for both
Buildings & Infrastructure and Consumer Products Services
- Positive scope effect of 0.3% in
the third quarter of 2023, reflecting bolt-on deals realized last
year net of disposals
- Negative currency impact of 8.4%,
resulted from the strength of the euro against most currencies
Q3 2023 Highlights
- Growth driven by all geographies
(Middle East, Africa, Americas, Europe, and Asia Pacific)
- Strong momentum maintained for
Sustainability and energy transition solutions across the
portfolio, representing 55% of Group sales through the BV Green
Line of services and solutions
- Strategic partnership investment
with OrbitMI, a US based maritime software company, for shipping
journeys performance management
2023 Outlook confirmedBased on
the 9-month performance, a healthy sales pipeline and the
significant growth opportunities related to Sustainability and
energy transition, Bureau Veritas expects for full-year 2023 to
deliver:
- mid-to-high single-digit organic
revenue growth;
- a stable adjusted operating margin
at constant exchange rates;
- strong cash
flow, with a cash conversion2 above 90%.
Hinda Gharbi, Chief Executive Officer,
commented:
“Our operations continue to deliver robust
growth through consistent contract execution and to develop
business opportunities for the future. Our performance in the third
quarter is as expected, after a particularly strong Q3 last year.
Our strategic focus is firmly on high growth markets such as
sustainability and energy transition and on ensuring that our
business mix and investments generate long-term value for the
company and our stakeholders.
To that effect, we are reinforcing Bureau
Veritas’ leadership in sustainability services, by augmenting our
capabilities through partnerships. In Q3, we signed a promising
partnership with Capgemini to provide our customers with ESG
digital tools. We have also formed a strategic partnership and
invested in a US software company focused on enabling shipping
decarbonization through journeys performance management.”
-
Q3 2023 KEY REVENUE FIGURES
|
|
|
GROWTH |
IN EUR MILLIONS |
Q3 2023 |
Q3 2022 |
CHANGE |
ORGANIC |
SCOPE |
CURRENCY |
Marine & Offshore |
110.0 |
104.7 |
+5.1% |
+13.4% |
- |
(8.3)% |
Agri-Food & Commodities |
305.5 |
323.9 |
(5.7)% |
+2.6% |
- |
(8.3)% |
Industry |
309.0 |
305.0 |
+1.3% |
+16.2% |
(1.4)% |
(13.5)% |
Buildings & Infrastructure |
413.8 |
427.2 |
(3.1)% |
+0.1% |
+1.4% |
(4.6)% |
Certification |
106.7 |
101.2 |
+5.4% |
+11.7% |
- |
(6.3)% |
Consumer Products Services |
178.8 |
195.1 |
(8.4)% |
- |
+0.9% |
(9.3)% |
Total Group revenue |
1,423.8 |
1,457.1 |
(2.3)% |
+5.8% |
+0.3% |
(8.4)% |
Revenue in the third quarter of 2023 amounted to
EUR 1,423.8 million, a 2.3% decrease compared with Q3 2022. Organic
growth was 5.8% against a particularly strong Q3 last year. 9-month
organic revenue grew by 8.1%.
Leading the growth in Q3 were the three
activities, Marine & Offshore, Industry and Certification,
which delivered double-digit organic growth, driven by the
continued momentum in Sustainability and ESG, including marine
decarbonization and renewable energy projects. Agri-Food &
Commodities delivered low-single-digit organic revenue growth led
by Agri-Food markets and government services. Buildings &
Infrastructure and Consumer Products Services were flat. Buildings
& Infrastructure having seen particularly strong growth in Q3
2022 and Consumer Products Services continuing to be impacted by
the consequences of lower consumer spending seen throughout the
year.
By geography, activities in Americas were solid
(29% of revenue; up 6.6% organically), led by a double-digit
increase in Latin America (in Brazil and Chile notably), as well as
in Canada. Europe (33% of revenue; up 4.8% organically) was
primarily led by high activity levels in Southern Europe. In Asia
Pacific (29% of revenue; up 1.8% organically), robust growth was
achieved in Australia alongside Southern Asia (notably in India)
and South-East Asian countries. Finally, activity was also strong
in Africa and the Middle East (9% of revenue; up 19.8%
organically), primarily driven by Buildings & Infrastructure
and energy projects in the Middle East.
The scope effect was a positive 0.3%, reflecting
bolt-on acquisitions realized last year, largely offset by a minor
disposal.
Currency fluctuations had a significant negative
impact of 8.4%, mainly due to the strength of the euro against USD
and pegged currencies and some emerging countries’ currencies.
At September 30, 2023, the Group's adjusted net
financial debt was up on the level recorded at June 30, 2023, due
to the dividend payment in July 2023. The Group had EUR 0.9 billion
in available cash and cash equivalents and EUR 600 million in
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.
Based on the 9-month performance, a healthy
sales pipeline and the significant growth opportunities related to
Sustainability and energy transition, Bureau Veritas expects for
full-year 2023 to deliver:
- mid-to-high single-digit organic
revenue growth;
- a stable adjusted operating margin
at constant exchange rates;
- strong cash flow, with a cash
conversion3 above 90%.
-
COMMITMENT TOWARDS EXTRA-FINANCIAL PERFORMANCE
Corporate Social Responsibility (CSR) key
indicators
|
UNITED NATIONS’ SDGS |
9M 2023 |
FY 2022 |
2025 target |
SOCIAL & HUMAN CAPITAL |
|
|
|
|
Total Accident Rate (TAR) 4 |
#3 |
0.24 |
0.26 |
0.26 |
Proportion of women in leadership positions5 |
#5 |
27.5% |
29.1% |
35.0% |
Number of learning hours per employee (per year)6 |
#8 |
22.9 |
32.5 |
35.0 |
ENVIRONMENT |
|
|
|
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CO2 emissions per employee (tons per year) 7 |
#13 |
2.39 |
2.32 |
2.00 |
GOVERNANCE |
|
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|
|
Proportion of employees trained to the Code of Ethics |
#16 |
96.8% |
97.1% |
99.0% |
Bureau Veritas’ joined CAC SBT
1.5° index
On September 18, 2023, Bureau Veritas was
included in the CAC SBT 1.5° index. This new index is made up of
SBF 120 companies whose emissions reduction targets have been
approved by the Science Based Targets initiative (SBTi) as in line
with the 1.5°C goal of the Paris Agreement.
This announcement comes in the wake of the
SBTi’s validation last June of the Group’s commitments to:
-
Reduce its absolute scopes 1 and 2 greenhouse gas (GHG) emissions
by 42% (from 2021 levels) by 2030;
-
Reduce its absolute scope 3 GHG emissions by 25% over the same
period.
Bureau Veritas shares have been part of the CAC
40 ESG index since September 17, 2021. This is the Euronext’s index
of the top 40 companies from the CAC Large 60 index (CAC40 + Next
20) in terms of environmental, social and governance (ESG)
practices.
The Group is also included in various
Sustainability indices, such as the DJSI and Axylia’s Vérité 40,
and features in S&P Global’s Sustainability Yearbook 2022.
MARINE & OFFSHORE
IN EUR MILLIONS |
2023 |
2022 |
CHANGE |
ORGANIC |
SCOPE |
CURRENCY |
Q3 revenue |
110.0 |
104.7 |
+5.1% |
+13.4% |
- |
(8.3)% |
9M revenue |
338.6 |
309.2 |
+9.5% |
+14.8% |
- |
(5.3)% |
The Marine & Offshore business was among the
best performing businesses within the Group’s portfolio in the
third quarter of 2023 with organic growth of 13.4% (9-month organic
revenue growth of 14.8%) led by all geographies and activities:
-
Double-digit organic revenue growth in New
Construction (41% of divisional revenue), reflecting the
solid backlog and acceleration of new order conversion, pushed by
sector drivers across the shipping industry (renewal of the world
ageing fleet and decarbonization regulations).
-
Double-digit organic revenue growth in the Core
In-service activity (45% of divisional revenue), still led
by a sustained high level of occasional surveys, especially on old
ships, combined with price increases and the growth of the
classified fleet. Slower growth rate in percentage terms remains
expected in Q4 after an exceptionally strong Q4 2022 linked to
one-off regulatory benefits. At September 30, 2023, the fleet
classified by Bureau Veritas comprised 11,635 ships, representing
147.2 million of Gross Register Tonnage (GRT).
-
High-single digit organic revenue growth for
Services (14% of divisional revenue, including
Offshore) was driven by a combination of strong commercial
development for non-classification services, including consulting
services related to energy efficiency.
Bureau Veritas new orders reached 6.8 million
gross tons at September 30, 2023, bringing the order book to
21.6 million gross tons at the end of the quarter, up 14.3%
compared to 18.9 million gross tons at end-September 2022. It is
composed of LNG fueled ships, container ships and specialized
vessels.
Marine & Offshore continued to focus on
efficiency levers through digitalization and high added-value
services. In September 2023, the Group has announced a strategic
partnership with OrbitMI, the New York-based maritime software
company, formalized through Bureau Veritas investment in OrbitMI.
Aimed at accelerating the development of both existing and new
data-driven solutions, the collaboration will leverage combined
strengths to address the dual opportunities of the digital
transformation and the decarbonization of shipping (more
information by clicking here).
Sustainability achievements
This quarter, Bureau Veritas issued its Approval
in Principle (AiP) to a shipbuilding group for the design of the
newest largest Liquified Natural Gas Carrier (LNGC) in history. In
order to do so, a preliminary design review and hazard
identification analysis was carried out to help ensure the highest
levels of safety, feasibility, and performance of this design in
compliance with applicable classification Rules and
Regulations.
AGRI-FOOD & COMMODITIES
IN EUR MILLIONS |
2023 |
2022 |
CHANGE |
ORGANIC |
SCOPE |
CURRENCY |
Q3 revenue |
305.5 |
323.9 |
(5.7)% |
+2.6% |
- |
(8.3)% |
9M revenue |
917.1 |
911.9 |
+0.6% |
+5.1% |
- |
(4.5)% |
The Agri-Food & Commodities business
delivered organic revenue growth of 2.6% in the third quarter of
2023, with different trends for each activity. This brought the
9-month organic revenue growth to 5.1%.
Oil & Petrochemicals
(O&P, 31% of divisional revenue) achieved low-single digit
organic revenue growth overall. While Europe has been gaining
ground with key customers in specific locations (Belgium, Spain,
Greece) and is recording high-single-digit organic revenue growth,
the O&P Trade activity has also been facing tougher competition
in North America and Asia.
Throughout the third quarter, non-trade related
services and value-added segments such as Verifuel bunker quantity
services continued to expand across O&P. Elsewhere, the Group
continues to benefit from sustained good demand for its new
initiatives around biofuels and OCM (Oil Condition Monitoring).
Metals & Minerals (M&M,
32% of divisional revenue) faced contrasting trends. Upstream
activity’s (nearly two-thirds of M&M) underlying trends are
solid, but the growth rate was mitigated by the strong Q3 2022. The
Group continued to benefit from the success of its on-site
laboratories’ strategy with important wins this quarter. In mining
related testing, the Middle East region is starting to benefit from
the recent efforts in capabilities expansion and diversification.
Trade activities recorded robust revenue growth, with strong trade
volumes in Asia.
Agri-Food (22% of divisional
revenue) activities achieved mid-single-digit organic growth in the
third quarter, once again led by Agricultural products.
Agricultural trade-related activities showed strong growth,
benefiting from the massive exports of key players from Brazilian
ports following the exceptionally good harvests for different food
commodities (corn, soybean, cotton). The good momentum on biodiesel
in Latin America is also supporting the growth. Within the Food
business, which grew low-single-digit organically, testing
activities in Australia continue to gradually benefit from
diversification. The North American and Middle East areas also
strongly benefited from the ramp-up of new labs.
Government services (15% of
divisional revenue) recorded high single-digit organic revenue
growth in the third quarter, with a sustained strong growth
delivered in Asia, Middle East and Africa. This was driven by the
solid ramp-up of the newly signed VOC (Verification of Conformity)
and Single Window contracts across the World.
Sustainability achievements
In the third quarter of 2023, the group provided
cargo inspection and sampling services on biofuels products made
from multi-seed crush and vegetable oils on behalf of an American
global food corporation in Belgium. The Group was also
awarded a Sustainability data assurance contract for one of the
world’s largest Food companies.
INDUSTRY
IN EUR MILLIONS |
2023 |
2022 |
CHANGE |
ORGANIC |
SCOPE |
CURRENCY |
Q3 revenue |
309.0 |
305.0 |
+1.3% |
+16.2% |
(1.4)% |
(13.5)% |
9M revenue |
927.3 |
867.4 |
+6.9% |
+15.8% |
(0.5)% |
(8.4)% |
Industry delivered strong organic revenue growth
in the third quarter of 2023 with organic growth of 16.2%, in line
with the previous quarters. This brought the 9-month organic
revenue growth to 15.8%.
All segments and most geographies contributed to
the divisional growth, with Americas, Middle East and Africa
outperforming. Energy transition remained a key catalyst overall
and triggered clean energy investment and decarbonation solutions
which benefited the division.
By market, Power &
Utilities (14% of divisional revenue) remained a growth
driver for the portfolio with a double-digit organic performance
for Capex activities during the third quarter. In Latin America,
the Group continues to benefit from its leading grid Opex platform
and contract wins with various Power Distribution clients, although
the growth is cushioned by the Group’s desire to be more selective
on contract profitability, as illustrated by a large contract
termination in Chile in the last quarter of 2022. In Europe, the
nuclear power generation segment was a growth enhancer, notably in
the UK, France and in Eastern countries (dismantling projects in
Lithuania).
Renewable Power Generation
activities (solar, wind, hydrogen) maintained strong momentum
during the quarter, with a high double-digit organic performance
delivered across most geographies. The US delivered a stellar
performance led by Bureau Veritas’ Bradley Construction Management
activities focusing on solar, onshore wind and high-voltage
transmission projects. In the third quarter, Bureau Veritas
launched its Renewable Ammonia scheme, which helps assure safe,
sustainable ammonia production from renewable energy. This followed
the launch of its Renewable Hydrogen scheme early 2023.
In Oil & Gas (33% of
divisional revenue), double-digit organic revenue growth was
maintained in the third quarter. The two-thirds of the business
related to Opex services increased 22.9% led by the conversion of a
solid sales pipeline. Capex-related activities grew double-digit
organically, benefiting from to the startup of new projects in the
gas sector (LNG). Large contracts ramped up in the US, Australia,
Middle East, Africa and Latin America, in Brazil in particular.
The non-energy activities
performed well driven by both Opex and Capex services. They
benefited from a range of drivers around ageing assets, tightening
regulations, and willingness to manage assets in a more sustainable
way from different industries (towards net zero targets). In
Canada, Site Assessment & Remediation continued to drive
business with new infrastructure projects and increased concerns
about PFAS.
Sustainability achievements
In the third quarter of 2023, Bureau Veritas was
awarded a major contract in South Korea with Anma Offshore Wind
Energy Co. (a consortium of Hyundai Engineering & KHNP), to
provide integrated QA/QC services during the fabrication,
manufacture, and installation of all major components of the 0.5 GW
offshore wind farm. In Saudi Arabia, the Group was also selected to
deliver owner's engineering services including design review,
procurement support and construction supervision for a 1.4 GW solar
photovoltaic farm.
BUILDINGS &
INFRASTRUCTURE
IN EUR MILLIONS |
2023 |
2022 |
CHANGE |
ORGANIC |
SCOPE |
CURRENCY |
Q3 revenue |
413.8 |
427.2 |
(3.1)% |
+0.1% |
+1.4% |
(4.6)% |
9M revenue |
1,282.6 |
1,205.0 |
+6.4% |
+7.0% |
+2.0% |
(2.6)% |
The Buildings & Infrastructure (B&I)
business achieved an organic growth of 0.1% in the third quarter of
2023 against very challenging comparables. This brought the 9-month
organic revenue growth to 7.0%.
During the period, the building-in service
activity outperformed the construction-related
activities.
The Americas region (28% of divisional revenue)
delivered varied performance by geography. In Latin America, a
strong growth was recorded thanks to the ramp-up of large Capex
contracts for project management assistance. In Northern America,
the activity was lower after strong numbers in Q3 2022 and efforts
to improve contract revenue mix with enhanced selectivity on some
contracts. In addition, persistent high interest rates continued to
create headwinds for the commercial real estate transactions
business. The rest of the Group’s diversified portfolio performed
well with data center commissioning leading growth, up double-digit
organically; code compliance was robust as the business benefits
from its exposure to the most attractive geographies in terms of
population growth.
In Europe (49% of divisional revenue), moderate
growth was delivered led by a double-digit performance in Italy,
the Netherlands and the UK thanks to more stringent regulation
benefiting both Opex and Capex activities around energy efficiency
and building safety. The broadly stable activity in France (37% of
divisional revenue) stemmed from an expected seasonality effect on
revenue in relation to energy efficiency for the Opex business
(three quarter of French operations). Beyond, growth momentum
remained steady with continued price increases, while the capex
related activities grew slightly, above the market, as it is more
weighted towards infrastructure and public works versus residential
building. In the fourth quarter, the growth is expected to
resume.
The Asia-Pacific and Middle East region (23% of
divisional revenue) was slightly down year on year on an organic
basis. While outstanding performances were delivered in India and
Southeastern Asia, the Chinese activity suffered from the
unfavorable comparable following the reopening of the Chinese
market in the prior year (post lockdown measures in Q2 2022) and
from lower spend for infrastructure projects in the transportation
field. The Power-related construction activities remained robust
and benefited from the energy transition drive.
The Middle East & Africa region was the
best-performing area, recording a double-digit organic revenue
increase in the third quarter. In the Middle East, the Group
continued to deliver very high growth primarily led by the roll-out
of numerous development projects. In Saudi Arabia, the Group is
still strongly engaged in delivering QA/QC Services for the NEOM
smart city project.
Sustainability achievementsIn
the third quarter of 2023, the Group was awarded several contracts
in the field of energy audits and sustainability requirements. This
ranges from implementing several energy audit campaigns according
to the EU Energy Efficiency Directives for large asset owners to
establishing a decarbonization pathway by performing energy
assessments and simulating carbon trajectory for real estate
owners. The Group was also selected to co-develop a sustainability
standard for Unibail Rodamco Westfield, as part of its Better
Places 2030 strategy, followed by audits and monitoring of the
label on their european portfolio.
CERTIFICATION
IN EUR MILLIONS |
2023 |
2022 |
CHANGE |
ORGANIC |
SCOPE |
CURRENCY |
Q3 revenue |
106.7 |
101.2 |
+5.4% |
+11.7% |
- |
(6.3)% |
9M revenue |
334.5 |
310.4 |
+7.7% |
+11.4% |
- |
(3.7)% |
The Certification business recorded strong
organic growth of 11.7% in the third quarter of 2023, a similar
growth trend to the last two quarters (9-month organic revenue
growth of 11.4%).
This was supported by both volume and price
increases. The acceleration of our portfolio diversification also
continued to drive growth with a quarter of the divisional revenue
contributing to nearly half of the growth.
The growth was broad-based across the schemes
and the geographies. Americas, Asia Pacific and the Middle East and
Africa region delivered the strongest organic revenue performances
thanks to commercial development and exposure to new services
including Sustainability and CSR-driven solutions.
During the period, the business continued to be
led by the increased client demand for more brand protection,
traceability, and social responsibility commitments all along the
supply chain. Double-digit growth was recorded for QHSE
schemes, Supply Chain and Food
Safety. Sustainability-driven solutions
grew 21% fueled by a continuing high demand for verification of
greenhouse gas emissions and supply chain audits on ESG
topics. In the near future, it will benefit from the upcoming
regulatory changes (CS3D -Corporate Sustainability Due Diligence-,
EU Deforestation Regulation, EU CSRD -Corporate Sustainability
Reporting Directive-) which will require more audit and
certification services than done voluntarily today.
The momentum remained strong on solutions
dedicated to companies around IT Service Management and information
security. In particular, the Cybersecurity
offering posted stellar performance similarly to H1 2023. This is
due to an extremely robust commercial development and by rising
demand for more control on security systems.
Sustainability achievements
In the third quarter of 2023, Bureau Veritas has
signed a partnership with Capgemini, a global leader in business
consulting, technology and engineering. Both companies will jointly
deliver a structured and scalable approach to help companies bring
transparency and credibility to their ESG commitments and put their
Sustainability strategy in motion. Through its proprietary ESG
solution, Clarity, Bureau Veritas will be able to assess a customer
organization and prioritize the global digitalization of their ESG
data, monitor the progress and review the data collection in
accordance with relevant standards.
During the period, Bureau Veritas won numerous
contracts in the Sustainability field. For instance, the Group was
selected by the government of Dubai (Legal Affairs department) to
train and audit law firms on their sustainability and quality
practices yearly. The Group was also awarded the Sustainability
Assurance services for the 2023 annual report of a large
pharmaceutical company.
CONSUMER PRODUCTS SERVICES
IN EUR MILLIONS |
2023 |
2022 |
CHANGE |
ORGANIC |
SCOPE |
CURRENCY |
Q3 revenue |
178.8 |
195.1 |
(8.4)% |
0.0% |
+0.9% |
(9.3)% |
9M revenue |
527.9 |
546.6 |
(3.4)% |
(2.0)% |
+4.2% |
(5.6)% |
The Consumer Products Services division recorded
a stable performance in the third quarter of 2023, a slight
improvement compared to the first half of 2023, with varying
geographical and service trends.
During the period, Asia remained the region most
impacted by the weak consumer spending backdrop, while the Americas
(especially Latin America) and the Middle East & Africa
continue to benefit from the diversification strategy implemented
over the last years.
Softlines, Hardlines & Toys
(49% of divisional revenue) saw low-single-digit organic growth in
the third quarter of 2023. Softlines showed mixed performance by
country: China returned to growth, Southern Asia maintained a
strong momentum (led by Bangladesh and India) -still benefiting
from the structural sourcing shift outside of China- and growth was
moderated in South-Eastern Asia facing challenging comparables.
Health, Beauty & Household
(8% of divisional revenue) recorded solid double-digit organic
growth in Q3, led by the US and Asia. China notably benefited from
two recent labs openings. Advanced Testing Laboratory (ATL) and
Galbraith Laboratories Inc., which were both acquired last year in
the US, progressed well with a promising sales pipeline.
Inspection & Audit services
(13% of divisional revenue) maintained their growth thanks to
strong momentum for Sustainability services over the course of the
third quarter of 2023. This includes organic, recycling, social
audits and green claim verification across most geographies.
Lastly,
Technology8 (30% of divisional
revenue), as expected, saw a single-digit organic contraction,
still affected by the global decrease in demand for electrical and
wireless equipment as well as the resulting temporary reduction in
new product launches. The New Mobility sub-segment
delivered double-digit growth, led by both Asia and the US, thanks
to the ramp-up of a new lab in Detroit, Michigan. This reflected
good traction on testing of electric vehicle systems and component.
In the third quarter of 2023, the Group continued to pursue its
geographical diversification strategy by opening an electronic ATEX
(European Directives for controlling explosive atmospheres)
regulated lab in Brazil.
Sustainability achievements
In the third quarter of 2023, the Group won a
contract with one of the world's leading sportswear and footwear
brand to help them in their supply chain decarbonization efforts
through SBTI & greenhouse gas reduction programs. Bureau
Veritas also performed social audits for a major European food
delivery service company as part of its supply chain due diligence
program for products used in their daily business (helmets,
delivery bags).
-
PRESENTATION
- Q3 2023 revenue
will be presented on Wednesday, October 25, 2023, at 6:00 p.m.
(Paris time)
- An audio conference
will be webcast live. Please connect to: Link to audio
conference
- The presentation
slides will be available on: https://group.bureauveritas.com
- 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
-
FINANCIAL CALENDAR
- Full Year 2023
Results: February 22, 2024
- Capital Markets
Day: March 20, 2024
- Q1 2024 revenue:
April 25, 2024
- Half Year 2024
Results: July 26, 2024
- Q3 2024 revenue:
October 23, 2024
About Bureau Veritas Bureau
Veritas is a world leader in laboratory testing, inspection and
certification services. Created in 1828, the Group has circa 84,000
employees located in nearly 1,600 offices and laboratories around
the globe. Bureau Veritas helps its 400,000 clients improve their
performance by offering services and innovative solutions in order
to ensure that their assets, products, infrastructure and processes
meet standards and regulations in terms of quality, health and
safety, environmental protection and social responsibility.Bureau
Veritas is listed on Euronext Paris and belongs to the CAC 40 ESG,
CAC Next 20, SBF 120 and SBT 1.5 indices. Compartment A, ISIN code
FR 0006174348, stock symbol: BVI.For more information, visit
www.bureauveritas.com, and follow us on Twitter (@bureauveritas)
and LinkedIn.
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ANALYST/INVESTOR CONTACTS |
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MEDIA CONTACTS |
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Laurent Brunelle |
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Florence de Nadaï |
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+33 (0)1 55 24 76 09 |
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florence.denadai.ext@bureauveritas.com |
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laurent.brunelle@bureauveritas.com |
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Colin Verbrugghe |
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Primatice |
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+33 (0)1 55 24 77 80 |
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thomasdeclimens@primatice.com |
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colin.verbrugghe@bureauveritas.com |
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armandrigaudy@primatice.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: Q3 AND 9M 2023 REVENUE BY BUSINESS
IN EUR MILLIONS |
Q3/9M 2023 |
Q3/9M 2022(a) |
CHANGE |
ORGANIC |
SCOPE |
CURRENCY |
Marine & Offshore |
110.0 |
104.7 |
+5.1% |
+13.4% |
- |
(8.3)% |
Agri-Food & Commodities |
305.5 |
323.9 |
(5.7)% |
+2.6% |
- |
(8.3)% |
Industry |
309.0 |
305.0 |
+1.3% |
+16.2% |
(1.4)% |
(13.5)% |
Buildings & Infrastructure |
413.8 |
427.2 |
(3.1)% |
+0.1% |
+1.4% |
(4.6)% |
Certification |
106.7 |
101.2 |
+5.4% |
+11.7% |
- |
(6.3)% |
Consumer Products |
178.8 |
195.1 |
(8.4)% |
- |
+0.9% |
(9.3)% |
Total Q3 revenue |
1,423.8 |
1,457.1 |
(2.3)% |
+5.8% |
+0.3% |
(8.4)% |
Marine & Offshore |
338.6 |
309.2 |
+9.5% |
+14.8% |
- |
(5.3)% |
Agri-Food & Commodities |
917.1 |
911.9 |
+0.6% |
+5.1% |
- |
(4.5)% |
Industry |
927.3 |
867.4 |
+6.9% |
+15.8% |
(0.5)% |
(8.4)% |
Buildings & Infrastructure |
1,282.6 |
1,205.0 |
+6.4% |
+7.0% |
+2.0% |
(2.6)% |
Certification |
334.5 |
310.4 |
+7.7% |
+11.4% |
- |
(3.7)% |
Consumer Products |
527.9 |
546.6 |
(3.4)% |
(2.0)% |
+4.2% |
(5.6)% |
Total 9M revenue |
4,328.0 |
4,150.5 |
+4.3% |
+8.1% |
+1.0% |
(4.8)% |
(a) Q3 and 9M 2022 figures by business have been
restated following a c. €2.9 million reclassification of activities
previously reported in Industry to the Buildings &
Infrastructure business.
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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 appendices 6 and 8
of this press release.
2 Net cash generated from operating
activities/Adjusted Operating Profit.
3 Net cash generated from operating
activities/Adjusted Operating Profit.
4 TAR: Total Accident Rate (number of accidents
with and without lost time x 200,000/number of hours worked).
5 Proportion of women on the Executive Committee
in Band II (internal grade corresponding to an 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 9-month period
compared to a 12-month period for FY 2022 and 2025 target
values.
7
Greenhouse gas
emissions from offices and laboratories, 12 months trailing tons of
CO2 equivalent per employee and per year for Scopes 1, 2 and 3
(emissions related to business travel).
8 The Technology segment comprises Electrical
& Electronics, Wireless testing activities and Automotive
connectivity testing activities.
- BUREAU VERITAS - 2023 10 25_Press release Q3 2023_vDEF
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