Bureau Veritas (BOURSE:BVI):
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Hinda Gharbi, CEO Bureau Veritas (Photo:
Business Wire)
2024 key figures1
› Revenue of EUR 6,240.9 million in the full year 2024, up 6.4%
year-on-year and up 10.2% organically (including 9.6% in the fourth
quarter), › Adjusted operating profit of EUR 996.2 million, up 7.1%
versus EUR 930.2 million in 2023, representing an adjusted
operating margin of 16.0%, up 11 basis points year-on-year and up
38 basis points at constant currency, › Operating profit of EUR
933.4 million, up 13.2% versus EUR 824.4 million in 2023, ›
Adjusted net profit of EUR 620.7 million, up 8.0% versus EUR 574.7
million in 2023, › Attributable net profit of EUR 569.4 million, up
13.0% versus EUR 503.7 million in 2023, › Adjusted Earnings Per
Share (EPS) of EUR 1.38, up 8.7% versus EUR 1.27 in 2023, › Record
Free Cash Flow of EUR 843.3 million, up 27.9% year-on-year and cash
conversion of 114%2, › Adjusted net debt/EBITDA ratio of 1.06x as
of December 31, 2024, versus 0.92x last year, › Proposed dividend
of EUR 0.90 per share3, up 8.4% year-on-year, payable in cash.
2024 highlights
› 2024 financial targets of organic growth, margin and cash flow
exceeded, › Tangible achievements and successes delivered in the
first year of the new LEAP | 28 strategy, › Strong growth recorded
in the Americas, the Middle East, Africa, Asia-Pacific and Europe,
› Sustained growth momentum in sustainability services across the
full portfolio, › In line with the LEAP I 28 focused portfolio
strategy and through active portfolio management, in 2024 the
company completed: i) the acquisition of 10 bolt-on companies for a
total annualized revenue of c. EUR 180 million; ii) the divestment
of its Food testing business and of a technical supervision
business on construction projects in China (c. EUR 165 million in
annualized combined revenue), › Double-digit shareholder returns
based on EPS growth of c. 9%, a dividend yield of c. 3% and
enhanced by a EUR 200 million share buyback program announced in
March 2024, › First A3 long-term credit rating by Moody’s, › EUR 1
billion bond issuances to refinance four US Private Placements in
advance with a nominal amount of USD 755 million as well as the
bond debt of EUR 500 million maturing in January 2025, › Good
progress towards achieving the 2028 CSR ambitions with multiple
recognitions by several non-financial rating agencies, › Inclusion
of Bureau Veritas in the CAC 40 Paris stock index in December
2024.
2025 outlook
Building on a strong 2024 momentum, a robust opportunities
pipeline, a solid backlog, and strong underlying market growth, and
in line with the LEAP | 28 financial ambitions, Bureau Veritas
expects to deliver for the full year 2025:
› 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%.
Hinda Gharbi, Chief Executive Officer, commented:
“2024 was an excellent year with the launch of our LEAP | 28
strategy in Q1-2024 and the delivery of record results on most
fronts. I take this opportunity to thank all our colleagues around
the world for their contributions and for their commitment.
This transformative strategic plan is built around three
pillars: a focused portfolio, a performance-led execution, and an
evolved people model. In its first year, we delivered tangible
results in line with our commitment to make a step change in growth
and returns. We recorded an organic growth of 10.2%, solid margin
improvements of 38 basis points and adjusted EPS growth of 17.0% at
constant currency. We also successfully completed our EUR 200
million share buyback initiative. Additionally, we significantly
accelerated our M&A program with ten acquisitions and two
important divestments.
Looking ahead, our focus remains on executing our growth and
margin accretion plans and further accelerating our M&A
program. Building on this strong momentum, we start 2025 with
confidence that Bureau Veritas is well positioned for continued
progress and for superior value creation.”
2024 KEY FIGURES
On February 24, 2025, the Board of Directors of Bureau Veritas
approved the financial statements for the full year 2024. The main
consolidated financial items are:
IN EUR MILLION
2024
2023
CHANGE
CONSTANT CURRENCY
Revenue
6,240.9
5,867.8
+6.4%
+10.8%
Adjusted operating
profit(a)
996.2
930.2
+7.1%
+13.4%
Adjusted operating
margin(a)
16.0%
15.9%
+11bps
+38bps
Operating profit
933.4
824.4
+13.2%
+20.1%
Adjusted net profit(a)
620.7
574.7
+8.0%
+16.2%
Attributable net profit
569.4
503.7
+13.0%
+22.2%
Adjusted EPS(a)
1.38
1.27
+8.7%
+17.0%
EPS
1.27
1.11
+13.8%
+23.0%
Operating cash-flow
1,004.8
819.7
+22.6%
+27.0%
Free cash-flow(a)
843.3
659.1
+27.9%
+32.4%
Adjusted net financial
debt(a)
1,226.3
936.2
+31.0%
(a) Alternative performance indicators are
presented, defined and reconciled with IFRS in appendices 6 and 8
of this press release
2024 HIGHLIGHTS
› 2024 financial targets exceeded on all
metrics
› Double-digit organic revenue growth in the full
year
Group revenue in 2024 increased by 10.2% organically compared to
2023, including 9.6% in the fourth quarter, benefiting from robust
market underlying trends across businesses and geographies.
› Improvement in adjusted operating margin at constant
exchange rates
The Group delivered an adjusted operating margin of 16.0%, up 38
basis points at constant currency and up 11 basis points on a
reported basis compared to 2023.
› Strong cash flow, with a cash conversion4 above 90%
The Group achieved a strong cash flow with a cash conversion of
114% in 2024.
› Achievements delivered in the first year
of the new LEAP | 28 strategy
In March 2024, Bureau Veritas launched its new strategy LEAP
I 28 to deliver a step change in growth and performance, with
sustainability at its core and built around three pillars: a
focused portfolio, a performance-led execution and an evolved
people model. In 2024, the Group achieved the following :
› Focused portfolio
In the full year 2024, the Group entered into agreements
for:
› The acquisition of ten companies,
representing annualized cumulated revenue of c. EUR 180 million, ›
The divestment of two companies, representing annualized cumulated
revenue of c. EUR 165 million.
In line with the LEAP | 28 strategy of active portfolio
management, Bureau Veritas has activated an M&A program to:
› Expand leadership:
- The Group aims to expand leadership for businesses in existing
strongholds with established leadership positions, through a
combination of rapid organic scaling and inorganic expansion.
- The execution started with a focus on Buildings &
Infrastructure (Capex & Opex). In the fourth quarter of
2024, the Group signed agreements for the acquisition of two
companies (IDP Group in Spain and APP Group in Australia),
strengthening its leadership in the B&I division. The acquired
companies generated a combined revenue of c. EUR 117 million in
2023.
- Additionally, in January 2025 Bureau Veritas announced that
an agreement was signed to acquire Contec AQS, an Italy-based
company that provides services in construction, infrastructure and
Health, Safety & Environment (HSE) domains for public
authorities, infrastructure operators, and private manufacturing
companies. The company employs c. 190 highly skilled experts and
generated revenue of c. EUR 30 million in 2024.
› Create market new
strongholds:
- The Group aims to accelerate growth in selected markets to
create new long-term strongholds, investing early in fast-growing
strategic sectors, where the Group has a clear path to market
leadership.
- In Renewables: the Group signed agreements for the
acquisition of two players, (for combined annualized revenue
amounting to c. EUR 11 million), expanding capabilities in the
energy and renewables sector.
- In Sustainability: the Group acquired Aligned Incentives
(US-based and EUR 3 million in annualized revenue) focusing on
sustainability transition services by augmenting the product
circularity services.
- In Cybersecurity: the Group completed the acquisition of
Security Innovation, (US-based and EUR 20 million in annualized
revenue) specialized in software security services.
- In Consumer Technology Testing: the Group acquired three
companies in Asia (combined annualized revenue of c. EUR 20
million) to expand its position in testing and certification
services for the Electrical and Electronics segment.
› Optimize value &
Impact:
- The Group aims to optimize value and impact from the remainder
of the portfolio by managing their performance in a granular and
consistent way. Businesses that do not meet stringent financial
performance hurdles will be candidates for performance improvement
or portfolio high grading.
- On the M&A front, the Group has an opportunistic approach
for these businesses. Specifically, in Consumer Product
Services: the Group strengthened its positioning in luxury
through the LBS Group acquisition in Italy (annualized revenue of
c. EUR 9 million). Details of M&A in appendix 7.
- As it actively manages its portfolio the Group:
- Divested its technical supervision business on construction
projects in China (EUR c.30 million in annualized revenue);
- Signed an agreement in the fourth quarter of 2024 to sell its
Food testing business (EUR 133 million of revenue in 2023) to
Mérieux NutriSciences for an Enterprise Value of EUR 360 million
and net proceeds from disposals of c. EUR 290 million. The
divestment of the Canada and US businesses was completed during
2024; the divestment of the Japan, South East Asia and Africa
businesses was completed in January 2025. The remaining part
(mainly Australia and Latin America) is being executed and is
expected to close by the end of the first semester of 2025.
For more information, the press releases are available by
clicking here.
› A performance-led execution
As part of its LEAP | 28 strategic roadmap, Bureau Veritas is
implementing two Group-wide performance streams to drive efficiency
and productivity across its operations.
› The first stream, focused on Operational
Leverage, aims to improve the Group’s gross margins through
programs such as new commercial and pricing methodologies while
modernizing and digitalizing the process delivery. › The second
stream is focused on the Scalability of functional costs, where the
Group intends to keep those costs as low as possible, leveraging
the company’s scale and digital enablement.
The ambitions attached to these Operational Leverage and
Function Scalability programs are a respective 100-basis-point and
an 80-basis points improvement, with half of the gains reinvested
to drive further growth and margin expansion.
Tremendous work was achieved in 2024 to complete a comprehensive
process mapping exercise to identify opportunities for improvement
across the organization. Basing on this assessment, the Group
started the rollout of well-defined programs to enhance the
operating models of select functions. They aim to define and
structure the Group's data management, bringing greater visibility
to the delivery workflows, and to capture scale benefits across
various processes. The performance management initiatives have
centered on increasing the granularity and visibility of key
operational metrics. Additionally, Bureau Veritas has deployed
pricing enhancement tools, which also contributed to the financial
performance. As an illustration :
› In the Marine & Offshore activity, the
Group implemented new tools to reduce contract leakage and improve
pricing applications. This implementation helped optimize ad hoc
service invoicing and boost divisional revenue and margins. This
approach will be replicated to other business lines like Buildings
& Infrastructure and Industry. › Additionally, during the year,
the Group launched its Smart Certification program to modernize its
service delivery by automating audit planning, reporting, and
back-office tasks. The SmartCert platform will eliminate
time-consuming manual tasks, allowing the Group to scale its
operations, optimize resource utilization, and generate reports
more efficiently.
The Group's strategic actions have yielded tangible financial
results, as evidenced by the 33-basis point year-over-year
improvement in its organic operating margin in 2024. These early
outcomes prove promising and augur well for the multi-year program,
which will imply investment, learning, and comprehensive change
management across the organization.
› Double-digit shareholder returns
In line with its LEAP | 28 strategy, the Group aims to deliver
double-digit shareholder returns within the period.
In 2024, double-digit shareholder returns were achieved based on
EPS growth of c. 9%, a dividend yield of c. 3% and enhanced by a
EUR 200 million share buyback program announced in the first
quarter of 2024.
› Proposed dividend of EUR 0.90 per share for 2024
The Board of Directors of Bureau Veritas is proposing a dividend
of EUR 0.90 per share for 2024, up 8.4% compared to the prior year.
This corresponds to a payout ratio of 65% of its adjusted net
profit.
This is subject to the approval of the Shareholders’ Meeting to
be held on June 19, 2025, at 3:00pm at the Bureau Veritas
Headquarters, Immeuble Newtime, 40-52 Boulevard du Parc, 92200,
Neuilly-sur-Seine, France. The dividend will be paid in cash on
July 3, 2025 (shareholders on the register on July 2, 2025 will be
entitled to the dividend and the share will go ex-dividend on July
1, 2025).
› 2024 share buyback program
The Group executed the EUR 200 million share buyback program
announced in March 2024, through:
› The acquisition of EUR 100 million on April
5, 2024, completed under the Wendel placement, › The acquisition of
the remaining EUR 100 million, bought by the Group on the market
between May and June 2024.
The repurchased shares will be used for cancellation and other
purposes as authorized by shareholders at the 2023 Annual
Meeting.
› First A3 long-term credit rating by
Moody’s and bond issuances
Bureau Veritas received its first long-term credit rating of A3
from Moody's with a “stable” outlook on April 24, 2024. This will
help the Group diversify its funding sources, gain enhanced access
to capital markets, and manage debt maturities. The full rating
report is available on moodys.com.
Subsequently:
› In May 2024, Bureau Veritas issued a EUR
500 million bond maturing in May 2036 with a 3.5% coupon, › In
November 2024, Bureau Veritas issued a EUR 500 million bond
maturing in November 2031 with a 3.125% coupon.
These issues were carried out to refinance four US Private
Placements in advance with a nominal amount of USD 755 million as
well as the bond debt of EUR 500 million maturing in January
2025.
CORPORATE SOCIAL RESPONSIBILITY COMMITMENTS
› Corporate Social Responsibility (CSR)
key indicators
UNITED NATIONS’ SDGS
2023
2024
2028 TARGET
ENVIRONMENT/NATURAL CAPITAL
CO2 emissions (Scopes 1 & 2,
1,000 tons)5
#13
149
135
107
SOCIAL & HUMAN CAPITAL
Total Accident Rate (TAR)6
#3
0.25
0.24
0.23
Gender balance in senior
leadership (EC-II)7
#5
29.3%
26.7%
36%
Number of learning hours per
employee (per year)
#8
36.1
41.3
40.0
GOVERNANCE
Proportion of employees trained
to the Code of Ethics
#16
97.4%
98.8%
99.0%
› The Group is recognized by non-financial
rating agencies and joined the United Nations Global
Compact
On February 26, 2024, Bureau Veritas joined the United Nations
Global Compact, the world’s largest CSR (corporate social
responsibility) initiative. 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, the environment, and anti-corruption.
On March 5, 2024, the Group was ranked #1 out of 72 companies in
the “Research and Consulting” sub industry by Morningstar
Sustainalytics. With an 8.9 rating, it was classified in the
"Negligible risk" category.
On January 21, 2025, the Group was included in Sustainalytics’
2025 ESG top-rated companies by region and industry based on ESG
risk rating score.
On October 8, 2024, Bureau Veritas was awarded a gold medal (top
5%) in the Ecovadis Sustainability Rating, with a score of 77/100,
up 10 points versus the last rating in May 2024, and well balanced
across all categories (environment, labor & Human Rights,
ethics and sustainable procurement).
On October 23, 2024, the Group improved its ESG performance in
the S&P Global Rating (DJSI), achieving a score of 84/100 for
2024 and ranking #2 out of 184 in the Professional Services
Industry category, which encompasses the TIC sector.
On February 7, 2025, Bureau Veritas was named in CDP’s
prestigious ‘A List’, based on the Group’s climate reporting in
2024. This prestigious accolade underscores Bureau Veritas'
unwavering commitment to mitigating climate risk and accelerating
the transition towards a decarbonized economy as a part of its LEAP
| 28 Strategy which puts Sustainability at its core.
› A year of significant recognition &
awards
› Bureau Veritas enters the CAC 40 Paris stock index
In December 2024, the Euronext Expert Indices Committee
announced the inclusion of Bureau Veritas in the CAC 40, the
benchmark index of the Paris stock exchange, effective from
December 20, 2024. This achievement underscores the Group's
consistent operational success and marks a significant milestone in
Bureau Veritas' remarkable journey.
› 2024 Transparency Awards
In July 2024, Bureau Veritas won the Transparency Award in the
"CAC Large 60" category, recognizing its excellence in financial
communication and public information transparency. The Group ranked
among the top 3 of 121 companies evaluated.
› Extel
In September 2024, the Group was also named a Most Honored
Company in the Developed Europe & Emerging EMEA Executive
survey by Extel in 2024, among c. 60 companies in the Business
& Employment services sector. The Group obtained the following
distinctions: Best CEO (Top 2), Best CFO (Top 1), Best Investor
Relations team & Best Investor Relations professional (Top 1),
Best ESG program (Top 2) and Best Investor Relations program &
Best investor event (Top 2).
OPERATIONAL APPOINTMENTS
› Khurram Majeed appointed Executive
Vice-President, Commodities, Industry and Facilities, Middle East,
Caspian and Africa
On April 1, 2024, Khurram Majeed became Executive Vice-President
for the Middle East, Caspian and Africa, overseeing the
Commodities, Industry and Facilities segments. This new regional
organization aims to capitalize on the region's growing market
opportunities in natural resources, construction and industry. It
will enhance customer focus, accelerate solution deployment, and
optimize resource utilization. Khurram Majeed is a member of the
Group Executive Committee.
For more information, the press release is available
by clicking here.
› Maria Lorente Fraguas appointed
Executive Vice-President and Chief People Officer
On July 25, 2024, the Group announced the appointment of Maria
Lorente Fraguas as Executive Vice President and Chief People
Officer, effective from October 1, 2024. This key role will support
the LEAP I 28 by evolving the Group’s people model, developing
strategic skills, and enabling new ways of working through
technology. Maria Lorente Fraguas is a member of the Group
Executive Committee.
For more information, the press release is available
by clicking here.
2025 OUTLOOK AND 2028 AMBITION
› 2025 outlook
Building on a strong 2024 momentum, a robust opportunities
pipeline, a solid backlog, and a strong underlying market growth,
and in line with the LEAP | 28 financial ambitions, Bureau Veritas
expects to deliver for the full year 2025:
› Mid-to-high single-digit organic revenue growth, › Improvement
in adjusted operating margin at constant exchange rates, › Strong
cash flow, with a cash conversion8 above 90%.
› LEAP | 28 ambitions
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 growth9
With:
Organic: mid-to-high
single-digit
And:
M&A acceleration and
portfolio high-grading
MARGIN
Consistent adjusted operating
margin improvement9
EPS CAGR9 + DIVIDEND
YIELD
Double-digit returns
CASH
Strong cash conversion8: 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 (dividends):
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
ANALYSIS OF THE GROUP'S RESULTS AND FINANCIAL
POSITION
› Revenue up 6.4% year-on-year (up 10.2%
on an organic basis)
Revenue in the full year of 2024 amounted to EUR 6,240.9
million, a 6.4% increase compared to 2023.
The organic increase was 10.2% compared to 2023 (including 9.6%
in the fourth quarter of 2024), benefiting from solid underlying
trends across most businesses and geographies.
By geography, the Americas (27% of revenue, up 12.5%
organically) delivered strong growth led by a double-digit increase
in Latin America and solid growth in North America. Europe (35% of
revenue, up 5.6% organically) achieved robust growth, primarily led
by high activity levels in France and in Southern and Eastern parts
of the continent. Business in Asia-Pacific (28% of revenue, up 9.2%
organically) benefited from mid-single digit growth in China, and
double-digit growth for Australia and India. Finally, activity was
very strong in Africa and the Middle East (10% of revenue, up 23.9%
organically), supported by Buildings & Infrastructure and
energy projects in the Middle East.
The scope effect was a positive 0.6%, reflecting bolt-on
acquisitions (contributing to +1.1%) realized in the past few
quarters and partly offset by the impact of small divestments
completed over the last twelve months (contributing to -0.5%).
Currency fluctuations had a negative impact of 4.4% (including
an easing negative impact of 2.5% in Q4), due to the strength of
the euro against most currencies.
› Adjusted operating profit up 7.1% to EUR
996.2 million (organic margin up 33 bps)
Full year adjusted operating profit increased by 7.1% to EUR
996.2 million and up 13.4% at constant currency.
CHANGE IN ADJUSTED OPERATING
MARGIN
IN PERCENTAGE AND BASIS POINTS
2023 adjusted operating
margin
15.9%
Organic change
+33bps
Organic adjusted operating
margin
16.2%
Scope
+5bps
Constant currency adjusted
operating margin
16.3%
Currency
(27)bps
2024 adjusted operating
margin
16.0%
This represents an adjusted operating margin of 16.0%, up 11
basis points compared to the full year 2023:
› The organic adjusted operating margin
increased by 33 basis points year-on-year to 16.2%, with revenue
growth and operating leverage delivering higher margins in Marine
& Offshore, Industry, Certification and Consumer Products
Services, partly offsetting lower margins in Agri-Food &
Commodities and Buildings & Infrastructure. › Scope had a
slight positive impact of 5 basis points. › Foreign exchange trends
were a negative impact of 27 basis points on the Group’s margin due
to the strength of the euro against other currencies.
Adjustment items decreased significantly to EUR 62.8 million
versus EUR 105.8 million in 2023, and comprised:
› EUR 44.3 million in amortization of
intangible assets resulting from acquisitions (from EUR 57.1
million in 2023), › EUR 4.0 million in write-offs of non-current
assets mainly linked to Marine & Offshore (EUR 22.1 million in
2023), › EUR 13.7 million in restructuring costs, relating chiefly
to commodities-related activities and Consumer Products Services
(compared to EUR 30.3 million in 2023), › EUR 0.8 million in net
losses on disposals and acquisitions (EUR 3.7 million in net gains
in 2023), linked to the divestment of activities which occurred
during the period offset by the acquisitions’ costs.
Operating profit totaled EUR 933.4 million, up 13.2% from EUR
824.4 million in 2023, and up 20.1% on a constant currency
basis.
› Adjusted EPS of EUR 1.38, up 8.7%
year-on-year and 17.0% at constant currency
Net financial expense amounted to EUR 50.7 million in 2024,
compared to EUR 46.0 million in the same period of 2023. The
difference in net finance costs is mainly attributable to the
differences in coupon between the bond redeemed in September 2023
and the one issued in May 2024.
In 2024, the Group recorded higher unfavorable exchange rate
effects compared to the previous year, with a gain of EUR 5.9
million (compared to a gain of EUR 6.9 million in 2023).
Other items (including interest costs on pension plans and other
financial expenses) stood at a negative EUR 24.8 million, from a
negative EUR 29.4 million in 2023.
As a result, net financial expenses slightly increased to EUR
69.6 million in full-year 2024 compared with EUR 68.5 million in
2023.
Consolidated income tax expense stood at EUR 273.8 million for
2024, compared to EUR 240.7 million for 2023. This represents an
effective tax rate (ETR- income tax expense divided by profit
before tax) of 31.7% for the period, versus 31.8% in 2023. The
adjusted effective tax rate decreased by 60 percentage points
compared to 2023, to 30.5%. It corresponds to the effective tax
rate adjusted for the tax effect of adjustment items. The decrease
is mainly due to a reduction in the amount of withholding taxes
incurred over the period.
Attributable net profit for the period was EUR 569.4 million,
versus EUR 503.7 million in 2023. Earnings per share (EPS) were EUR
1.27, compared to EUR 1.11 in 2023.
Adjusted attributable net profit totaled EUR 620.7 million in
2024, up 8.0% versus EUR 574.7 million in 2023. Adjusted EPS stood
at EUR 1.38 in 2024, an 8.7% increase versus 2023 (EUR 1.27 per
share) and of 17.0% based on constant currencies.
› Record Free Cash Flow of EUR 843.3
million (+27.9% year-on-year)
The full year 2024 operating cash flow increased by 22.6% to EUR
1,004.8 million versus EUR 819.7 million in 2023. This was fueled
by a working capital requirement inflow of EUR 60.8 million,
compared to a EUR 53.6 million outflow in the previous year,
despite strong revenue growth delivered in the fourth quarter (up
9.6% organically).
The working capital requirement (WCR) stood at EUR 293.0 million
as of December 31, 2024, compared to EUR 379.8 million as of
December 31, 2023. As a percentage of revenue, WCR decreased by 180
basis points to a record low of 4.7%, compared to 6.5% at the end
of 2023. This showed the continued strong focus of the entire
organization on cash metrics, under its “Move For Cash” program.
This program involved optimizing the "invoice to cash" process,
accelerating billing and cash collection procedures across the
Group.
Purchases of property, plant and equipment and intangible
assets, net of disposals (net capex), amounted to EUR 139.8 million
in 2024, down 2.6% compared to the 2023 figure of EUR 143.5
million. This showed disciplined control, with the Group’s net
capex-to-revenue ratio achieving 2.2%, down 20 basis points
compared to the level in 2023.
Free cash flow (operating cash flow after tax, interest expenses
and net capex) was strong at EUR 843.3 million, up 27.9%
year-on-year, compared to EUR 659.1 million in 2023. At constant
exchange rates, growth was 32.3%. On an organic basis, free cash
flow increased by 31.2% year-on-year.
CHANGE IN FREE CASH FLOW
IN EUR MILLION
Free cash flow for the period
ending on December 31, 2023
659.1
Organic change
205.5
Organic free cash-flow
864.6
Scope
7.7
Free cash flow at constant
currency
872.3
Currency
(29.0)
Free cash flow for the period
ending on December 31, 2024
843.3
› Solid financial position
The Group has a solid financial structure with most of its
maturities beyond 2027. Bureau Veritas had EUR 1.2 billion in
available cash and cash equivalents, and EUR 600 million in undrawn
committed credit lines as of December 31, 2024. The adjusted net
financial debt/EBITDA ratio was maintained at a low level of 1.06x.
The average maturity of the Group’s financial debt was 5 years,
with a blended average cost of funds over the year of 3.0%
(excluding the impact of IFRS 16), compared to 2.7% at December 31,
2023 (excluding the impact of IFRS 16).
At December 31, 2024, adjusted net financial debt was EUR
1,226.3 million, i.e. 1.06x EBITDA compared with 0.92x at December
31, 2023. The increase in adjusted net financial debt of EUR 290.1
million (including the impact of debt from acquired companies)
versus December 31, 2023 (EUR 936.2 million) reflects:
› Free cash flow of EUR 843.3 million, ›
Dividend payments totaling EUR 406.9 million, corresponding mainly
to dividends paid to non-controlling interests and withholding
taxes on intra-group dividends, › Net share buyback totaling EUR
173.7 million, as part of the Group’s LEAP | 28 strategy, ›
Acquisitions (net) and repayment of amounts owed to shareholders,
accounting for EUR 266.8 million, › Lease and interest payments
(related to the application of IFRS 16), accounting for EUR 149.9
million, › Other items that increased the Group's debt by EUR 15.8
million (including foreign exchange).
2024 BUSINESS REVIEW
MARINE & OFFSHORE
IN EUR MILLION
2024
2023
CHANGE
ORGANIC
SCOPE
CURRENCY
Revenue
504.2
455.7
+10.6%
+13.7%
-
(3.1)%
Adjusted Operating Profit
118.5
108.6
+9.1%
Adjusted Operating Margin
23.5%
23.8%
(33)bps
+34bps
(1)bp
(66)bps
Marine & Offshore was among the top performing businesses
within the Group’s portfolio in the full year of 2024 with organic
growth of 13.7% (including 12.4% in the fourth quarter), with the
following trends:
› A strong double-digit increase in New
Construction (42% of divisional revenue), led by an increase in
average tonnage per vessel and the conversion of a solid backlog
from the renewal of the world’s ageing fleet and from compliance
with decarbonization regulations. › Double-digit growth in Core
In-service activity (45% of divisional revenue), a combination
of the increased number of serviced ships, the aging of these
ships, the reduced number of scrapped vessels, and price increases.
On December 31, 2024, the fleet classed by Bureau Veritas reached
for the first time slightly over 12,000 ships, up 2.7%
year-on-year. › Slight growth in Services (13% of divisional
revenue, including Offshore), benefiting from good commercial
development of non-class services, including consulting services
covering ship energy-efficiency, and increased Offshore services in
the fourth quarter.
The division continues to experience sustained growth momentum,
benefiting from the maritime industry’s actions to reduce
emissions, to renew the global fleet and to enhance energy
efficiency. The Group secured 14.7 million gross tons of new orders
on December 31, 2024, bringing the order book to 27.2 million gross
tons, up 21.4% versus December 31, 2023. The order book is composed
of a diversified mix including specialized vessels and increased
numbers of LNG-fueled ships.
In 2024, Marine & Offshore continued to focus on efficiency
levers through digitalization and high-value services. In the
fourth quarter, Bureau Veritas signed a Memorandum of Understanding
(MoU) with HD Hyundai Samho and Siemens to adopt a 3D Model-Based
Design Approval process, supporting the industry's digital
transformation of classification.
The adjusted operating margin for the full year was maintained
at a healthy 23.5% on a reported basis compared to 23.8% in 2023,
negatively impacted by foreign exchange effects (66 basis points).
Organically, it rose by 34 basis points, benefiting from operating
leverage and a positive mix.
Sustainability achievements
In 2024, Bureau Veritas continued to support clients in
addressing sustainability and energy transition challenges by
providing safety, risk, and performance guidance for innovative
fuels and propulsion systems. The Group also helped clients comply
with environmental regulations, implement sustainable onboard
solutions, and measure decarbonization progress.
In the fourth quarter of 2024, Bureau Veritas provided two
'Approvals in Principle' to GTT for a system enabling ship owners
to convert LNG fuel tanks to use ammonia or methanol as alternative
fuels, supporting the industry's shift to cleaner energy.
As part of the Wing Sail Mobility initiative, Bureau Veritas was
awarded a contract to conduct a design review of inflatable,
retractable wing sails with the aim to harness wind energy and
reduce fuel consumption.
AGRI-FOOD & COMMODITIES
IN EUR MILLION
2024
2023
CHANGE
ORGANIC
SCOPE
CURRENCY
Revenue
1,264.2
1,233.3
+2.5%
+5.7%
-
(3.2)%
Adjusted Operating Profit
176.0
183.8
(4.3)%
Adjusted Operating Margin
13.9%
14.9%
(99)bps
(91)bps
-
(8)bps
The Agri-Food & Commodities business posted a 5.7% growth on
an organic basis in 2024, with organic growth in the fourth quarter
at 5.3%.
In 2024, the Oil & Petrochemicals segment (O&P,
31% of divisional revenue) recorded a high-single-digit increase in
organic revenue. This good performance was mainly fueled by market
share gains among mid-size players in key geographical areas such
as the Middle East and North America. Several laboratory contracts
ramp ups and a strong momentum around non-trade activities
(renewables, biofuels, Oil Condition Monitoring services) also
played a favorable role in the growth.
The Metals & Minerals segment (M&M, 33% of
divisional revenue) achieved mid-single-digit growth on an organic
basis in 2024, in a year marked by significant commodities prices
volatility and an evolving macroeconomic environment. In the second
half of 2024, the historic high prices for gold and copper
stimulated exploration drilling activities, and fueled Upstream
business growth, particularly in Australia and the Middle East
region. In 2024, Bureau Veritas experienced successful execution
and ramp up of multiple onsite laboratory contracts, laying the
foundation for a promising pipeline of opportunities in 2025 and
beyond. Trade activities recorded high single-digit organic growth,
primarily driven by base and battery metals demand in Asia.
The Agri-Food business (22% of divisional revenue) also
delivered a mid-single organic growth in 2024.
› The mid-to-high single-digit organic growth
in the Agri sub-segment was driven by solid performance in
both Upstream and Trade activities. Trade activities mainly
benefited from the good corn and soy crops in the first part of the
year in Latin America. › Food services delivered
mid-single-digit growth over the course of the year, with a strong
performance in Australia and Southeast Asia, reaping the benefits
of operational optimization plans. The disposal of the North
American food testing activities to Mérieux NutriSciences was
finalized before the end of 2024. Divestments in other regions,
including Asia-Pacific, Africa and Latin America, are expected to
be completed in the first half of 2025.
Government services (14% of divisional revenue) posted
low single-digit organic growth in 2024. The first half of the year
faced unfavorable comparables and expected contracts completion,
while the second half saw a gradual recovery. The Middle East and
African countries led the growth, driven by several contract ramp
ups in both Single Window and Verification of Conformity services.
This sub-segment starts 2025 with a robust pipeline of
opportunities.
The adjusted operating margin for the Agri-Food &
Commodities business stood at 13.9%, down 99 basis points compared
to last year. This was attributed to an unfavorable business mix
effect (due to the soft performance of Metals & Minerals) and a
negative forex impact.
Sustainability achievements
In 2024, Bureau Veritas continued to expand its sustainability
and Green Objects solutions to address the needs of the commodities
markets. In the final quarter of the year, the Group was awarded a
contract to perform inspections and analyses on bio-based
feedstocks in Southeast Asia and in Europe, where these feedstocks
are being processed into finished biofuel products.
In Europe, the Group also secured a contract with a leading
energy and commodities trading company to test new biomarine fuel
blends. This helps ship operators decrease their carbon footprint
and comply with the new International Maritime Organization (IMO)
requirements.
INDUSTRY
IN EUR MILLION
2024
2023
CHANGE
ORGANIC
SCOPE
CURRENCY
Revenue
1,319.3
1,243.9
+6.1%
+19.9%
(1.2)%
(12.6)%
Adjusted Operating Profit
189.3
176.4
+7.3%
Adjusted Operating Margin
14.3%
14.2%
+17bps
+74bps
+10bps
(67)bps
Industry achieved a strong organic revenue increase of 19.9% in
2024, including 20.6% growth in the fourth quarter led by most
businesses and geographies.
Customer spending remained strong across all energy sectors,
driven by energy security and transition needs. In addition, the
Group maintained solid growth momentum across its diversified
industrial portfolio. It also benefited from inflation-related
pricing in some currency impacted geographies.
By market, Power & Utilities (13% of divisional
revenue) remained a growth driver for the portfolio with a
double-digit organic performance. Growth was fueled by the Middle
East and Asia offset by low profitability contracts exits in
Brazil. In Europe, the stable growth in the nuclear power
generation reflects the ramp up of Quality Assurance and Quality
Control inspection projects in the United Kingdom and France,
offsetting the completion of the French EPR (European pressurized
reactor) Flamanville 3 project. The pipeline of new projects across
many countries is on an upward trend, alongside the lifetime
extension programs of many nuclear power plants (France, United
States).
Within Power & Utilities, Renewable Power Generation
activities (solar, offshore & onshore wind, hydrogen) sustained
their growth momentum over the full year, benefiting from the
ramp-up of new projects to increase new capacity. They achieved
strong double-digit organic performance across most geographies.
The United States led this growth, driven by the execution of a
substantial number of solar projects. Meanwhile, China's robust
Renewables spending, notably for wind projects, continued to fuel a
sustained growth dynamic for the Group. Lastly, the Middle East and
Asia-Pacific regions also provided growth opportunities.
In Oil & Gas (31% of divisional revenue), strong
double-digit organic revenue growth was achieved. Both Capex and
Opex services saw substantial increases across most regions, as the
Group capitalized on a favorable investment cycle, its recognized
expertise, and global capabilities. The Middle East, Latin America,
and Asia were the primary growth drivers, while the United States
performed well thanks to LNG (liquefied natural gas) projects, and
Europe benefited from solid Opex-related activity.
Industry Products Certification (17% of divisional
revenue) services achieved double-digit organic growth in 2024,
with strong performance across all regions. Europe sustained strong
growth, driven by its solid brand reputation in machinery and
advanced manufacturing services. North America benefited from its
leading position in solutions for pressure vessels and welding. In
Asia, double-digit growth was fueled by strong industrial momentum
in the transport and logistics sector.
The Environmental Testing business (11% of divisional
revenue) delivered mid-to-high single-digit organic growth, boosted
by a robust baseline activity in Canada and a good momentum around
the industrial hygiene business in the United States.
Industry’s adjusted operating margin for the year increased by
17 basis points to 14.3%. Organically, it rose by 74 basis points
benefiting from operational leverage and increased arbitrage on low
profitability contracts.
Sustainability achievements
In the fourth quarter of 2024, the Group was selected by
TotalEnergies to provide project management, owner’s engineering,
quality control and quality assurance services for an onshore wind
farm and solar project in Oman. The Group was also awarded a
contract to deliver technical support services for construction and
inspection of a 3500 MW solar farm in China. Besides, the Group
signed three framework agreements with EDF, the French electricity
producer, for regulatory inspection of several nuclear equipment
manufacturers. In terms of its carbon and climate transition
services, Bureau Veritas was also selected to provide carbon
footprint assessment and emission monitoring services to support
the sustainability efforts of an oil offshore project in Malaysia
and a leading gas supplier in Europe.
BUILDINGS & INFRASTRUCTURE
IN EUR MILLION
2024
2023
CHANGE
ORGANIC
SCOPE
CURRENCY
Revenue
1,828.9
1,759.0
+4.0%
+5.2%
(0.2)%
(1.0)%
Adjusted Operating Profit
234.7
227.7
+3.1%
Adjusted Operating Margin
12.8%
12.9%
(11)bps
(18)bps
+14bps
(7)bps
The Buildings & Infrastructure (B&I) business recorded
organic revenue growth of 5.2% in 2024 (including 3.5% growth in
the fourth quarter), with growth in all main geographies.
During the period, the construction-related activities
performed similarly to the building-in service
activity. The growth was primarily led by the strategic
assets (infrastructure and data centers) on which the Group is
focusing.
The Americas region (27% of divisional revenue) achieved
a mid-single-digit organic revenue increase. The US platform
outperformed, capitalizing on its diversified portfolio of
activities. Notably, the data center business maintained
significant double-digit organic expansion globally, driven by
growing demand for data storage, cloud computing and AI needs, as
well as from pricing initiatives. Both regulatory-driven Opex
services and Capex infrastructure projects delivered strong growth.
The building transactional activities recovered with a noticeable
improvement in the second half of the year, driven by commercial
real estate and industrial property markets activation. In Latin
America, robust growth in Brazil was partially offset by the
Group's strategic shift, which involved the exit of public
contracts and a refocus on infrastructure projects.
Business in Europe (51% of divisional revenue) was solid
overall, up mid-single-digit organically. Most countries
contributed to the growth, with Italy leading as the country
increased its national infrastructure spending. France had a good
year primarily led by its large Opex related activities, with
service volume increases, productivity gains and favorable pricing.
The energy regulatory environment and customers' commitment to
sustainable development underpinned demand for energy efficiency
programs (including energy performance diagnostics). Regarding the
French Capex-related activities, the Group’s favorable mix enabled
it to outperform the construction market thanks to its exposure to
infrastructure and public works (including the 2024 Paris Olympic
Games).
The Asia-Pacific region (18% of divisional revenue)
achieved a mid-single-digit organic revenue increase led by high
growth in South and Southeast Asia and Australia. China had a
negative impact, as weak public spending constrained growth in
transport infrastructure. In the fourth quarter, the Group acquired
the APP Group, a leading Australian Property and Infrastructure
leader (EUR 87 million of annualized revenue). This transaction
strengthens its position in the Australian market but also provides
the Group with a robust and sustainable platform to support B&I
services growth in the wider Asia-Pacific region.
Lastly, the Middle East & Africa region (4% of
divisional revenue), maintained its strong momentum throughout the
year, delivering double-digit organic revenue growth. This
performance was primarily driven by the Group's operations in Saudi
Arabia, where it benefited from the development of numerous
large-scale infrastructure projects.
Adjusted operating margin for the year slightly eroded by 11
basis points to 12.8% from 12.9% in the prior year. This reflected
the impact of low activity in China which was not fully offset by
the US performance.
Sustainability achievements
During the year, the Group continued to strengthen its
Sustainability offering, ranging from climate change mitigation
services like energy audits, green certifications and labels,
decarbonization assessment and energy management solutions, as well
as climate adaptation services. In the fourth quarter of 2024, the
Group was selected to assist the OECD (Organization for Economic
Co-operation and Development) by providing independent, expert
verification of sustainability claims for infrastructure projects
seeking the “Blue Dot Network” label. This would help ensure the
credibility and reliability of this global sustainable
infrastructure label. In Japan and in China, the Group was awarded
a contract to carry out a green building LEED (Leadership in Energy
and Environmental Design) certification for a leading property
developer.
CERTIFICATION
IN EUR MILLION
2024
2023
CHANGE
ORGANIC
SCOPE
CURRENCY
Revenue
527.3
465.2
+13.3%
+15.0%
+1.7%
(3.4)%
Adjusted Operating Profit
103.4
88.2
+17.3%
Adjusted Operating Margin
19.6%
19.0%
+66bps
+114bps
(14)bps
(34)bps
Certification was among the strongest performing businesses
within the Group’s portfolio in full year 2024, with organic growth
of 15.0%, (including organic revenue growth of 11.3% in the last
quarter). This was led by increasing volumes and robust price
escalations.
The Group's portfolio diversification accelerated, driving
broad-based growth, and covering various schemes and all geographic
regions. This was a result of successful business development
programs and deployment of new services, including sustainability
and corporate social responsibility solutions.
QHSE & Specialized Schemes solutions (51% of
divisional revenue) recorded double-digit growth in the year,
helped by the recertification cycle occurring this year for several
schemes across different industries. The Group also benefited from
the ramp up of large public outsourcing contracts for food safety
inspections in France and for food audits and training services in
Spain.
Sustainability-related solutions & Digital (Cyber)
certification activities (28% of divisional revenue).
On the sustainability front, strong double-digit organic growth
was achieved, as the Group responded to high demand for carbon
footprint assessments and ESG related supply chain audits.
Additionally, as customers develop their sustainability plans, they
have increasing needs for verifications and assessments of their
Greenhouse Gas emissions and of their supply chains. They also need
help with their decarbonization plans in line with approved schemes
like SBTi. Furthermore, many organizations are now working on
product circularity and require lifecycle assessments to be
completed on all their portfolio. In line with the incoming
regulations, such as the EU Deforestation Regulation, the EU
Corporate Sustainability Reporting Directive (CSRD), and the Carbon
Border Adjustment Mechanism (CBAM), customers have opted for
voluntary verification and advisory services. These services help
them reduce their risks and prepare for the implementation of these
new regulations.
On the cybersecurity front, certification and assurance services
are benefiting from high customer demand for enterprise risk
management solutions and auditing services, driving strong
double-digit growth over the year.
Other solutions, including Training (21% of divisional
revenue) posted low single-digit organic revenue growth in 2024
against challenging comparables.
The adjusted operating margin for the year increased by 66 basis
points to 19.6%, compared to 19.0% in the prior year. Organically,
it rose by 114 basis points as a result of sound operational
leverage and a favorable business mix.
Sustainability achievements
In the fourth quarter, Bureau Veritas was awarded a contract
with a French car equipment manufacturer to develop a methodology
for environmental data analysis in 150 plants in several
countries.
The Group was also selected for a rainforest alliance audit to
verify the health and environmental conditions for c. 40 cocoa
cooperatives. Similarly, the Group has been chosen by a supplier of
a major restaurant chain to track its organization's carbon
footprint (including Scope 3) for the next three years. This was
made possible thanks to the solutions of the recently acquired
Aligned Incentives company which provides transition services for
product circularity.
In 2024, Bureau Veritas also further developed its pioneering
sustainable finance portfolio of services. The Group is today the
first and only company in the Testing, Inspection and Certification
market to be recognized as an External Reviewer by the ESMA
(European Securities & Market Authorities) for the EU Green
Bond standard.
CONSUMER PRODUCTS SERVICES
IN EUR MILLION
2024
2023
CHANGE
ORGANIC
SCOPE
CURRENCY
Revenue
797.0
710.7
+12.1%
+8.1%
+6.2%
(2.2)%
Adjusted Operating Profit
174.3
145.5
+19.8%
Adjusted Operating Margin
21.9%
20.5%
+140bps
+198bps
(47)bps
(11)bps
The Consumer Products Services division delivered 8.1% organic
revenue growth over the full year 2024, including a strong organic
performance of 10.2% in Q4, driven by some restocking and calendar
effects linked to the Chinese New Year.
South and Southeast Asia showed a good dynamic in 2024, driven
by Vietnam and Bangladesh, which benefitted from the China
derisking strategy. The Americas benefited from the ongoing
diversification strategy, with good growth in the Electrical and
Electronics segment in South America (Brazil and Mexico).
The Softlines, Hardlines & Toys segment (accounting
for 48% of divisional revenue) delivered double-digit organic
growth in 2024. In this mature market, this strong performance is
due to i) an increase in demand and in Stock Keeping Units (SKUs),
driven in the second half by the anticipation of US Tariffs on
China, ii) market share gains. The growth was led by Bangladesh and
India, leveraging US clients shift towards South Asian countries
and from European demand.
Healthcare (including Beauty and Household) (8% of
divisional revenue) posted solid double-digit organic growth for
2024 spearheaded by the US operations and leveraging global
accounts. This growth was realized following a successful
integration of the two companies acquired in the last two
years.
Supply Chain & Sustainability services (14% of
divisional revenue) recorded very good double-digit organic growth.
Social audits and Sustainability schemes are driving the growth,
especially in Europe, the US and China, as some voluntary social
and sustainability audits are regulated and become mandatory, and
as companies protect their brand and reputation.
Technology (30% of divisional revenue) saw a low
single-digit contraction in 2024, with a sequential improvement in
the second half. The Electronics sub-segment was still affected by
a global decrease in demand for wireless products and new mobility
equipment (electrical vehicles and components). However, the
electrical appliances segment delivered good performance, bolstered
by enhanced consumer spending patterns.
In line with the LEAP I 28 strategy, the Group accelerated its
M&A program to:
› Invest in the new stronghold of Consumer
Technology Testing, with the three acquisitions - OneTech Corp.,
Kostec Co. in Korea and Hi Physix Laboratory in India - to bolster
its presence in Electrical and Electronics consumer products
testing in the key markets of South Korea and India, and › Optimize
value and impact in consumer product services, with the acquisition
of LBS Group in Italy to strengthen its positioning in luxury and
fashion, as well as its supply chain solutions.
Adjusted operating margin for the year increased by 140 basis
points to 21.9% from 20.5% in the prior year. Organically it rose
by 198 basis points thanks to good operational leverage, offset by
a negative scope (47 bps) and limited forex effects.
Sustainability achievements
In 2024, transition services continued to grow, with the Group
supporting customers' ESG transformation and monitoring the
traceability of their supply chain. For example, the Group was
awarded a contract with a major smartphone company in Asia to carry
out product lifecycle analysis of batteries in a recycling context.
Additionally, it was selected by a major e-commerce company to
carry out social audits at several Asian sites to comply with the
company's program requirements.
PRESENTATION
› 2024 results will be presented on Tuesday, February 25, 2025,
at 3:00 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
2025 FINANCIAL CALENDAR
› Q1 2025 Revenue: April 24, 2025 (pre market) › Shareholder’s
meeting: June 19, 2025 › HY 2025 Results: July 25, 2025 (pre
market) › Q3 2025 Revenue: October 23, 2025 (pre 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’ 84,000 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, CAC 40 ESG, 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
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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: Q4 AND FY 2024 REVENUE BY BUSINESS
IN EUR MILLION
Q4 / FY 2024
Q4 / FY 2023(a)
CHANGE
ORGANIC
SCOPE
CURRENCY
Marine & Offshore
130.3
117.1
+11.3%
+12.4%
-
(1.1)%
Agri-Food & Commodities
328.0
316.4
+3.7%
+5.3%
-
(1.6)%
Industry
359.3
319.1
+12.6%
+20.6%
+0.5%
(8.5)%
Buildings &
Infrastructure
491.7
473.8
+3.8%
+3.5%
+0.9%
(0.6)%
Certification
148.0
130.6
+13.3%
+11.3%
+4.2%
(2.2)%
Consumer Products
214.2
182.8
+17.2%
+10.2%
+7.5%
(0.5)%
Total Q4 revenue
1,671.4
1,539.8
+8.5%
+9.6%
+1.6%
(2.7)%
Marine & Offshore
504.2
455.7
+10.6%
+13.7%
-
(3.1)%
Agri-Food & Commodities
1,264.2
1,233.3
+2.5%
+5.7%
-
(3.2)%
Industry
1,319.3
1,243.9
+6.1%
+19.9%
(1.2)%
(12.6)%
Buildings &
Infrastructure
1,828.9
1,759.0
+4.0%
+5.2%
(0.2)%
(1.0)%
Certification
527.3
465.2
+13.3%
+15.0%
+1.7%
(3.4)%
Consumer Products
797.0
710.7
+12.1%
+8.1%
+6.2%
(2.2)%
Total FY revenue
6,240.9
5,867.8
+6.4%
+10.2%
+0.6%
(4.4)%
(a) Q4 and FY 2023 figures by business
have been restated following a reclassification of activities
impacting mainly the Industry and Buildings & Infrastructure
businesses (c. €5.9 million in the full year)
APPENDIX 2: 2024 REVENUE BY QUARTER
2024 REVENUE BY QUARTER
IN EUR MILLION
Q1
Q2
Q3
Q4
Marine & Offshore
122.1
129.2
122.7
130.3
Agri-Food & Commodities
297.3
316.6
322.3
328.0
Industry
295.6
328.4
336.0
359.3
Buildings &
Infrastructure
441.0
455.7
440.5
491.7
Certification
117.4
137.9
124.1
148.0
Consumer Products
166.1
214.4
202.3
214.2
Total revenue
1,439.5
1,582.2
1,547.9
1,671.4
APPENDIX 3: ADJUSTED OPERATING PROFIT AND MARGIN BY
BUSINESS
ADJUSTED OPERATING PROFIT
ADJUSTED OPERATING MARGIN
IN EUR MILLION
2024
2023(a)
CHANGE
2024
2023
CHANGE
Marine & Offshore
118.5
108.6
+9.1%
23.5%
23.8%
(33)bps
Agri-Food & Commodities
176.0
183.8
(4.3)%
13.9%
14.9%
(99)bps
Industry
189.3
176.4
+7.3%
14.3%
14.2%
+17bps
Buildings &
Infrastructure
234.7
227.7
+3.1%
12.8%
12.9%
(11)bps
Certification
103.4
88.2
+17.3%
19.6%
19.0%
+66bps
Consumer Products
174.3
145.5
+19.8%
21.9%
20.5%
+140bps
Total Group
996.2
930.2
+7.1%
+16.0%
+15.9%
+11bps
(a) FY 2023 figures by business have been
restated following a reclassification of activities impacting
mainly the Industry and Buildings & Infrastructure businesses
(c. €3.5 million in the full year).
APPENDIX 4: EXTRACTS FROM THE FULL-YEAR CONSOLIDATED
FINANCIAL STATEMENTS
Extracts from the full year 2024 consolidated financial
statements audited and approved on February 24, 2025 by the Board
of Directors. The audit procedures for the full year consolidated
financial statements have been undertaken and the Statutory
Auditors’ report is being issued.
CONSOLIDATED INCOME STATEMENT
IN EUR MILLION
2024
2023
Revenue
6,240.9
5,867.8
Service costs rebilled to
clients
203.4
191.7
Revenue and services costs
rebilled to clients
6,444.3
6,059.5
Purchases and external
charges
(1,943.2)
(1,834.0)
Personnel costs
(3,264.9)
(3,061.8)
Taxes other than on income
(41.2)
(48.9)
Net (additions to)/reversals of
provisions
(23.0)
(22.4)
Depreciation and amortization
(283.7)
(291.5)
Other operating income and
expense, net
45.1
23.5
Operating profit
933.4
824.4
Share of profit of
equity-accounted companies
(0.8)
0.7
Operating profit after share
of profit of equity-accounted companies
932.6
825.1
Income from cash and cash
equivalents
46.0
45.0
Finance costs, gross
(96.7)
(91.0)
Finance costs, net
(50.7)
(46.0)
Other financial income and
expense, net
(18.9)
(22.5)
Net financial expense
(69.6)
(68.5)
Profit before income
tax
863.0
756.6
Income tax expense
(273.8)
(240.7)
Net profit
589.2
515.9
Non-controlling interests
19.8
12.2
Attributable net
profit
569.4
503.7
Earnings per share (in
euros):
Basic earnings per share
1.27
1.11
Diluted earnings per share
1.25
1.10
CONSOLIDATED STATEMENT OF FINANCIAL
POSITION
IN EUR MILLION
DEC. 31, 2024
DEC. 31, 2023
Goodwill
2,313.0
2,127.4
Intangible assets
464.4
360.0
Property, plant and equipment
401.9
389.0
Right-of-use assets
409.6
391.5
Non-current financial assets
100.2
108.9
Deferred income tax assets
131.9
136.6
Total non-current
assets
3,821.0
3,513.4
Trade and other receivables
1,644.9
1,584.5
Contract assets
309.7
325.9
Current income tax assets
46.6
33.5
Derivative financial
instruments
5.4
4.1
Other current financial
assets
11.3
9.1
Cash and cash equivalents
1,204.2
1,173.9
Total current assets
3,222.1
3,131.0
Assets held for sale
151.8
-
TOTAL ASSETS
7,194.9
6,644.4
Share capital
54.5
54.5
Retained earnings and other
reserves
1,917.2
1,881.6
Equity attributable to owners
of the Company
1,971.7
1,936.1
Non-controlling interests
64.1
57.7
Total equity
2,035.8
1,993.8
Non-current borrowings and
financial debt
1,896.5
2,079.7
Non-current lease liabilities
328.0
319.7
Other non-current financial
liabilities
66.3
73.7
Deferred income tax
liabilities
102.6
85.0
Pension plans and other long-term
employee benefits
148.8
147.2
Provisions for other liabilities
and charges
77.5
72.2
Total non-current
liabilities
2,619.7
2,777.5
Trade and other payables
1,392.5
1,273.4
Contract liabilities
269.1
257.2
Current income tax
liabilities
104.9
98.5
Current borrowings and financial
debt
534.4
31.2
Current lease liabilities
114.3
107.5
Derivative financial
instruments
5.0
3.3
Other current financial
liabilities
85.4
102.0
Total current
liabilities
2,505.6
1,873.1
Liabilities held for sale
33.8
-
TOTAL EQUITY AND
LIABILITIES
7,194.9
6,644.4
CONSOLIDATED STATEMENT OF CASH
FLOWS
IN EUR MILLION
2024
2023
Profit before income
tax
863.0
756.6
Elimination of cash flows from
financing and investing activities
53.2
30.8
Provisions and other non-cash
items
24.6
35.7
Depreciation, amortization and
impairment
283.7
291.5
Movements in working capital
requirement attributable to operations
60.8
(53.6)
Income tax paid
(280.5)
(241.3)
Net cash generated from
operating activities
1,004.8
819.7
Acquisitions of subsidiaries and
activities, net of acquired cash
(313.9)
(58.9)
Proceeds from sales of
subsidiaries and businesses
105.4
17.5
Purchases of property, plant and
equipment and intangible assets
(145.9)
(157.6)
Proceeds from sales of property,
plant and equipment and intangible assets
6.1
14.1
Purchases of non-current
financial assets
(8.2)
(11.7)
Proceeds from sales of
non-current financial assets
8.7
5.8
Change in loans and advances
granted
-
2.8
Net cash used in investing
activities
(347.8)
(188.0)
Capital increase
18.1
5.7
Purchases/sales of treasury
shares
(191.8)
(1.9)
Dividends paid
(406.9)
(396.3)
Increase in borrowings and other
debt
1,000.4
0.9
Repayment of borrowings and other
debt
(800.1)
(500.4)
Repayment of amounts owed to
shareholders
(58.3)
(29.6)
Repayment of lease liabilities
and interest
(149.9)
(141.9)
Interest paid
(21.7)
(17.1)
Net cash generated from/(used
in) financing activities
(610.2)
(1,080.6)
Impact of currency translation
differences
(12.7)
(36.7)
Cash and cash equivalent
classified as asset held for sale
(3.6)
-
Net increase/(decrease) in
cash and cash equivalents
30.5
(485.6)
Net cash and cash equivalents at
beginning of the period
1,170.1
1,655.7
Net cash and cash equivalents
at end of the period
1,200.6
1,170.1
o/w cash and cash equivalents
1,204.2
1,173.9
o/w bank overdrafts
(3.6)
(3.8)
APPENDIX 5: BREAKDOWN OF NET FINANCIAL EXPENSE
NET FINANCIAL EXPENSE
IN EUR MILLION
2024
2023
Finance costs, net
(50.7)
(46.0)
Foreign exchange gains
5.9
6.9
Interest cost on pension
plans
(4.4)
(5.1)
Other
(20.4)
(24.3)
Net financial expense
(69.6)
(68.5)
APPENDIX 6: ALTERNATIVE PERFORMANCE INDICATORS
ADJUSTED OPERATING PROFIT
IN EUR MILLION
2024
2023
Operating profit
933.4
824.4
Amortization of intangible assets
resulting from acquisitions
44.3
57.1
Impairment and retirement of
non-current assets
4.0
22.1
Restructuring costs
13.7
30.3
Gains and losses on disposals of
businesses and other income and expenses relating to
acquisitions
0.8
(3.7)
Total adjustment items
62.8
105.8
Adjusted operating
profit
996.2
930.2
CHANGE IN ADJUSTED OPERATING
PROFIT
IN EUR MILLION
2023 adjusted operating
profit
930.2
Organic change
+116.2
Organic adjusted operating
profit
1,046.4
Scope
+8.1
Constant currency adjusted
operating profit
1,054.5
Currency
(58.3)
2024 adjusted operating
profit
996.2
ADJUSTED EFFECTIVE TAX RATE
IN EUR MILLION
2024
2023
Profit before income tax
863.0
756.6
Income tax expense
273.8
240.7
ETR(a)
31.7%
31.8%
Adjusted ETR(b)
30.5%
31.1%
(a) Effective tax rate (ETR) = Income tax
expense/Profit before income tax.
(b) Adjusted ETR = Income tax expense
adjusted for tax effect on adjustment items/Profit before tax and
before taking into account adjustment items.
ATTRIBUTABLE NET PROFIT
IN EUR MILLION
2024
2023
Attributable net profit
569.4
503.7
EPS(a) (€ per share)
1.27
1.11
Adjustment items
62.8
105.8
Tax impact on adjustment
items
(8.7)
(27.7)
Non-controlling interest on
adjustment items
(2.8)
(7.1)
Adjusted attributable net
profit
620.7
574.7
Adjusted EPS(a) (€ per share)
1.38
1.27
(a) Calculated using the weighted
average number of shares: 450,009,888 in 2024 and 453,009,724 in
2023.
CHANGE IN ADJUSTED ATTRIBUTABLE
NET PROFIT
IN EUR MILLION
2023 adjusted attributable net
profit
574.7
Organic change and scope
93.0
Adjusted attributable net
profit at constant currency
667.7
Currency
(47.0)
2024 adjusted attributable net
profit
620.7
FREE CASH FLOW
IN EUR MILLION
2024
2023
Net cash generated from operating
activities (operating cash flow)
1,004.8
819.7
Purchases of property, plant and
equipment and intangible assets
(145.9)
(157.6)
Disposals of property, plant and
equipment and intangible assets
6.1
14.1
Interest paid
(21.7)
(17.1)
Free cash flow
843.3
659.1
CHANGE IN NET CASH GENERATED FROM
OPERATING ACTIVITIES
IN EUR MILLION
Net cash generated from
operating activities at December 31, 2023
819.7
Organic change
211.6
Organic net cash generated
from operating activities
1,031.3
Scope
9.4
Net cash generated from
operating activities at constant currency
1,040.7
Currency
(35.9)
Net cash generated from
operating activities at December 31, 2024
1,004.8
ADJUSTED NET FINANCIAL DEBT
IN EUR MILLION
DEC. 31, 2024
DEC. 31 2023
Gross financial debt
2,430.9
2,110.9
Cash and cash equivalents
(1,204.2)
(1,173.9)
Consolidated net financial
debt
1,226.7
937.0
Currency hedging instruments
(0.4)
(0.8)
Adjusted net financial
debt
1,226.3
936.2
APPENDIX 7: M&A
ANNUALIZED REVENUE
COUNTRY/ AREA
CLOSING DATE
FIELD OF EXPERTISE
Expand leadership
Buildings &
Infrastructure
APP Group
EUR 87m
Australia
November 2024
Engineering for Infrastructure
and Independent Project Management services for Buildings
IDP Group
EUR 30m
Spain
October 2024
Building Information Modeling,
Project Management Assistance and Digital Twin services
Create new market
strongholds
Renewables
Versatec
EUR 5m
Netherlands
November 2024
Technical consultancy firm
ensuring technical compliance in the offshore & onshore energy
industry
ArcVera Renewables
EUR 6m
USA
September 2024
Finance-grade consulting and
technical services for wind, solar, and battery storage
projects
Sustainability
Aligned Incentives
EUR 3m
USA
October 2024
Enterprise sustainability
planning platform & aggregator
Cybersecurity
Security Innovation
EUR 20m
USA
August 2024
Software security services
company focused on software testing, SDLC advisory &
training
Consumer Technology
Testing
OneTech Corp.
EUR 12m
South Korea
June 2024
Testing and certification
services for Electrical and Electronics consumer products
Kostec Co., Ltd
EUR 5m
South Korea
April 2024
Testing and certification
services for Electrical and Electronics consumer products
Hi Physix Laboratory India
Pvt.
EUR 2m
India
April 2024
Electrical and electronics
products testing and certification services laboratory
Optimize value &
Impact
Consumer Product
Services
LBS Group
EUR 9m
Italy
December 2024
Testing services/supply chain QA,
luxury accessories segment
APPENDIX 8: 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 complementary
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, also known as 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 a
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.
ADJUSTED OPERATING PROFIT AND ADJUSTED OPERATING
MARGIN
Adjusted operating profit and adjusted operating margin are key
indicators used to measure the performance of the business,
excluding material items that cannot be considered inherent to the
Group’s underlying intrinsic performance owing to their nature.
Bureau Veritas considers that these indicators, presented at Group
level and for each business, are more representative of the
operating performance in its industry.
Adjusted operating profit
Adjusted operating profit represents operating profit prior to
adjustments for the following:
- Amortization of intangible assets resulting from
acquisitions,
- Impairment of goodwill,
- Impairment and retirement of non-current assets,
- Restructuring costs,
- Gains and losses on the disposal of activities, including in
particular:
- Fees and acquisition costs of activities, including, when
applicable, external costs related to their integration within the
Group,
- Contingent consideration on acquisitions of businesses,
- Gains and losses on the disposal of activities.
When an acquisition is carried out during the financial year,
the amortization of the related intangible assets is calculated on
a time proportion basis.
Since a measurement period of 12 months is allowed for
determining the fair value of acquired assets and liabilities,
amortization of intangible assets in the year of acquisition may,
in some cases, be based on a temporary measurement and be subject
to minor adjustments in the subsequent reporting period, once the
definitive value of the intangible assets is known.
Organic adjusted operating profit represents operating profit
adjusted for scope and currency effects over comparable
periods:
- At constant scope of consolidation: data are restated based on
a 12-month period,
- At constant exchange rates: data for the current year are
restated using exchange rates for the previous year.
The scope and currency effects are calculated using a similar
approach to that used for revenue for each component of operating
profit and adjusted operating profit.
Adjusted operating margin
Adjusted operating margin expressed as a percentage represents
adjusted operating profit divided by revenue. Adjusted operating
margin can be presented on an organic basis or at constant exchange
rates, thereby, in the latter case, providing a view of the Group’s
performance excluding the impact of currency fluctuations, which
are outside of Bureau Veritas’ control.
Service costs rebilled to clients, that were previously included
under the "Purchases and external charges" line item, are now
presented separately, with no impact on operating profit and net
profit in the current and previous year.
ADJUSTED EFFECTIVE TAX RATE
The effective tax rate (ETR) represents income tax expense
divided by the amount of pre-tax profit.
The adjusted effective tax rate (adjusted ETR) represents income
tax expense adjusted for the tax effect on adjustment items divided
by pre-tax profit before taking into account the adjustment items
(see adjusted operating profit definition).
ADJUSTED NET PROFIT
Adjusted attributable net profit
Adjusted attributable net profit is defined as attributable net
profit adjusted for adjustment items (see adjusted operating profit
definition) and for the tax effect on adjustment items. Adjusted
attributable net profit excludes non-controlling interests in
adjustment items and only concerns continuing operations.
Adjusted attributable net profit can be presented at constant
exchange rates, thereby providing a view of the Group’s performance
excluding the impact of currency fluctuations, which are outside of
Bureau Veritas’ control. The currency effect is calculated by
translating the various income statement items for the current year
at the exchange rates for the previous year.
Adjusted attributable net profit per share
Adjusted attributable net profit per share (adjusted EPS or
earnings per share) is defined as adjusted attributable net profit
divided by the weighted average number of shares outstanding in the
period (excluding own shares held by the Group).
FREE CASH FLOW
Free cash flow represents net cash generated from operating
activities (operating cash flow), adjusted for the following
items:
- Purchases of property, plant and equipment and intangible
assets,
- Proceeds from disposals of property, plant and equipment and
intangible assets,
- Interest paid.
Net cash generated from operating activities is shown after
income tax paid.
Organic free cash flow represents free cash flow at constant
scope and exchange rates over comparable periods:
- At constant scope of consolidation: data are restated based on
a 12-month period,
- At constant exchange rates: data for the current year are
restated using exchange rates for the previous year.
The scope and currency effects are calculated using a similar
approach to that used for revenue for each component of net cash
generated from operating activities and free cash flow.
FINANCIAL DEBT
Gross debt
Gross debt (or gross finance costs/financial debt) represents
bank loans and borrowings plus bank overdrafts.
Net debt
Net debt (or net finance costs/financial debt) as defined and
used by the Group represents gross debt less cash and cash
equivalents. Cash and cash equivalents comprise marketable
securities and similar receivables as well as cash at bank and on
hand.
Adjusted net debt
Adjusted net debt (or adjusted net finance costs/financial debt)
as defined and used by the Group represents net debt taking into
account currency and interest rate hedging instruments.
CONSOLIDATED EBITDA
Consolidated EBITDA represents net profit before interest, tax,
depreciation, amortization and provisions, adjusted for any
entities acquired over the last 12 months.
_____________________ 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
Proposed dividend, subject to Shareholders’ Meeting approval on
June 19, 2025. 4 (Net cash generated from operating activities –
lease payments + corporate tax)/adjusted operating profit. 5 Scope
1 and Scope 2 greenhouse gas emissions are calculated over a
12-month period from January to December 2024. The emissions for Q4
2024 are estimated based on Q4 2023, adjusting for any major events
that may impact the emissions during that period. 6 TAR: Total
Accident Rate (number of accidents with and without lost time x
200,000/number of hours worked). 7 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). 8 (Net cash generated from operating activities – lease
payments + corporate tax)/adjusted operating profit. 9 At constant
currency.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250224326662/en/
ANALYST/INVESTOR CONTACTS
Laurent Brunelle +33 (0)1 55 24 76 09
laurent.brunelle@bureauveritas.com
Colin Verbrugghe +33 (0)1 55 24 77 80
colin.verbrugghe@bureauveritas.com
Karine Ansart karine.ansart@bureauveritas.com
Inès Lagoutte ines.lagoutte@bureauveritas.com
MEDIA CONTACTS
Anette Rey +33 (0)6 69 79 84 88
anette.rey@bureauveritas.com
Martin Bovo +33 (0) 6 14 46 79 94
martin.bovo@bureauveritas.com
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