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Testing company SGS reports 4.1% drop in full year profit

Published 01/26/2023, 12:54 AM
Updated 01/26/2023, 12:57 AM
© Reuters. FILE PHOTO: The logo of the world's biggest testing and inspection company SGS is pictured at an office building in Zurich July 17, 2013.  REUTERS/Arnd Wiegmann

ZURICH (Reuters) - Testing and inspection group SGS said it was aiming for organic growth in the mid-single digit percentage range this year after on Thursday reporting a 4.1% drop in shareholders net profit for 2022.

The Swiss company said shareholders net profit fell to 588 million Swiss francs ($640.94 million), down from 613 million francs a year earlier.

SGS, which made nine acquisitions during 2022, said its revenue increased by 3.7% to 6.6 billion francs from 6.4 billion francs, missing forecasts for 6.72 billion francs in a company gathered consensus of analyst forecasts.

Organic growth, which cuts out the impact of acquisitions and currency moves, came in at 5.8%, missing the company's guidance for an increase towards the upper end of the mid-single digit percentage range.

Adjusted operating income was flat at 1.02 billion francs, in line with the company's updated outlook from November when it said it expected a similar level to 2021. Analysts had forecast a figure of 1.03 billion francs.

Chief Executive Frankie Ng said the results showed the company, whose activities include environmental testing and public health, had navigated a "challenging environment."

For 2023, the company said it was aiming to improve its ajusted operating income and profit margin.

© Reuters. FILE PHOTO: The logo of the world's biggest testing and inspection company SGS is pictured at an office building in Zurich July 17, 2013.  REUTERS/Arnd Wiegmann

SGS proposed unchanged dividend of 80 francs, the same as a year earlier.

($1 = 0.9174 Swiss francs)

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