BUREAU VERITAS: Strong Q3 2024 organic revenue growth; Refocused
portfolio with ongoing acquisitions acceleration, in line with the
LEAP | 28 strategy; 2024 revenue outlook upgraded
PRESS RELEASE
Neuilly-sur-Seine, France – October 23, 2024
Strong Q3 2024 organic revenue
growth;
Refocused portfolio with ongoing
acquisitions acceleration, in line with the LEAP | 28
strategy;
2024 revenue outlook
upgraded
Q3 2024 Key
figures1
-
Revenue of EUR 1,547.9 million in the third quarter of 2024, up
8.8% year-on-year and up 13.0% organically,
-
Strong organic growth from all businesses compared to the third
quarter of 2023: with Industry at +23.8%, Certification at +17.7%,
Marine & Offshore at +13.2%, Buildings & Infrastructure at
+9.3%, Agri-Food & Commodities at +8.5% and Consumer Products
Services at +7.5%,
-
Positive scope effect of 0.5% in the third quarter of 2024,
reflecting the accelerated pace of acquisitions with multiple
bolt-on deals (+1.1% contribution) realized net of disposals (-0.6%
contribution),
-
Negative currency impact of 4.7%, resulting from the strength of
the euro against most currencies.
Q3 2024 Highlights
-
Active management of the portfolio in line with the LEAP | 28
strategy,
-
Consistent growth in every region (Americas, Middle East, Africa,
Asia-Pacific), outperforming respective underlying markets,
-
Growth momentum maintained for sustainability services, both for
Transition services and Green Objects,
-
An acceleration of the Group’s M&A programs with three
transactions signed for a total annualized revenue of c. EUR 40
million in line with the LEAP | 28 portfolio strategy: the first
one to expand leadership in the B&I stronghold, the second and
third ones to create new strongholds in Renewables, and in
Sustainability,
-
As the Group optimizes value and impact of some of its businesses
it has signed an agreement to sell its Food testing business (EUR
133 million in revenue in 2023) to Mérieux NutriSciences for
an Enterprise Value of EUR 360 million and net proceeds from
disposals of around EUR 290 million. The deal is expected to be
broadly neutral on EPS.
2024 Outlook upgraded
Based on the 9-month performance, leveraging a
healthy and growing sales pipeline and strong underlying market
growth, Bureau Veritas now expects to deliver for the full year
2024:
- 9 to 10% organic
revenue growth (from “high single-digit” previously);
- Improvement in
adjusted operating margin at constant exchange rates;
- Strong cash
flow, with a cash conversion2 above 90%.
Hinda Gharbi, Chief Executive Officer,
commented:
“We continued the execution of our
LEAP |28 strategy in the third quarter, and we are
actively managing our portfolio. We have completed three
acquisitions, representing a total cumulative annualized revenue of
c. EUR 40 million for the transactions signed this
quarter, and of c. EUR 80 million for the total seven acquisitions
signed this year. We have also entered into an agreement to sell
our food testing business. The transaction strengthens our balance
sheet and gives us greater flexibility in implementing our
acquisition plans.
In Q3, we maintained a strong growth
trajectory with an organic growth of 13.0% driven by the entire
portfolio. Year to date this equates to an organic growth of
10.5%.
For the rest of the year and in light of our
strong 9 months growth, our robust backlog and our focused
operational execution, we are upgrading our 2024 revenue outlook
for the second time this year.”
Q3 2024 KEY FIGURES
|
|
|
|
GROWTH |
|
IN EUR MILLION |
Q3 2024 |
Q3 2023 |
CHANGE |
ORGANIC |
SCOPE |
CURRENCY |
|
Marine & Offshore |
122.7 |
110.0 |
+11.5% |
+13.2% |
- |
(1.7)% |
|
Agri-Food & Commodities |
322.3 |
305.5 |
+5.5% |
+8.5% |
- |
(3.0)% |
|
Industry |
336.0 |
309.0 |
+8.8% |
+23.8% |
(0.5)% |
(14.5)% |
|
Buildings & Infrastructure |
440.5 |
413.8 |
+6.4% |
+9.3% |
(1.9)% |
(1.0)% |
|
Certification |
124.1 |
106.7 |
+16.3% |
+17.7% |
+2.2% |
(3.6)% |
|
Consumer Products Services |
202.3 |
178.8 |
+13.2% |
+7.5% |
+7.6% |
(1.9)% |
|
Total Group revenue |
1,547.9 |
1,423.8 |
+8.8% |
+13.0% |
+0.5% |
(4.7)% |
- Strong organic revenue
growth across the full portfolio and all geographies
Revenue in the third quarter of 2024 amounted to
EUR 1,547.9 million, an 8.8% increase compared to Q3 2023.
Organic growth achieved a strong 13.0% which led to 10.5% on a
9-month basis.
Three businesses delivered very strong organic
growth: Marine & Offshore, up 13.2%, Industry, up 23.8%, and
Certification, up 17.7%. Buildings & Infrastructure further
recovered, up 9.3% organically in the third quarter (after 4.3% in
the first half) while both Consumer Products Services and Agri Food
& Commodities grew high-single digits organically, both
reflecting improving market trends.
By geography, the Americas (28% of revenue, up
18.3% organically) delivered strong growth led by a double-digit
increase in both Latin America and in the US. Europe (33% of
revenue, up 7.5% organically) recorded robust growth, primarily led
by high activity levels in France and in Southern and Eastern
European countries. Business in Asia-Pacific (29% of revenue, up
10.4% organically) benefited from robust growth in China, and
double-digit growth for Australia and India. Finally, activity was
also very strong in Africa and the Middle East (10% of revenue, up
23.4% organically), supported by Buildings & Infrastructure and
energy projects in the Middle East.
The scope effect was a positive 0.5%, 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 -0.6%).
Currency fluctuations had a negative impact of
4.7%, due to the strength of the euro against most currencies.
By September 30th, 2024, net
financial debt was higher than that of June 30th, 2024,
due to dividend payments in July 2024. The Group had EUR 1.2
billion in available cash and cash equivalents, and EUR 600 million
in undrawn committed credit lines. The Group has a solid financial
structure with most of its debt maturities beyond 2026 and 100% at
fixed interest rates.
FOCUSED PORTFOLIO
In line with the LEAP | 28 strategy to focus its
portfolio on businesses with top leadership market position, the
Group is actively managing its portfolio, and it has activated a
targeted M&A program to attain its objectives:
- In
Buildings & Infrastructure:
- In October 2024,
Bureau Veritas announced the acquisition of IDP
Group, a leading independent provider of Building
Information Modeling (BIM), Project Management Assistance and
Digital Twin services for the public and private sector, with
strong positioning in decarbonization and other high-value
verticals. IDP realized revenues of c. EUR 30 million in 2023.
This acquisition will expand Bureau Veritas’
B&I services by enhancing its global end-to-end operational
capabilities, leveraging innovative BIM expertise, consulting and
Digital Twin asset digitalization.
- In
Renewables and Sustainability related businesses:
- The Group
acquired ArcVera Renewables in September 2024, a
specialized provider in finance-grade consulting and technical
services for wind, solar, and battery storage projects worldwide.
It generated revenues of c. EUR 6 million in 2023.
- In October 2024,
Bureau Veritas also acquired Aligned Incentives, a
provider of Enterprise sustainability planning platform and
aggregator, enabling companies to measure their Scope 3 GHG
emissions and compute life-cycle analysis at industrial level. With
tremendous potential for scaling up, Aligned Incentives combines
top-tier ESG advisory services, and an extensive database supported
by AI-Powered enterprise sustainability planning. It generated
revenues of EUR 3 million in 2023.
As it pursues its active portfolio
management to optimize value and impact of its portfolio
the Group entered into an agreement to sell its Food testing
business (EUR 133 million in revenue in 2023) to Mérieux
NutriSciences for an Enterprise Value of EUR 360 million and net
proceeds from disposals of around EUR 290 million. This operation
will slightly enhance the Group's adjusted operating margin and is
neutral on the attributable adjusted net profit as of 2025. The
transaction is expected to close by the end of the fourth quarter
of 2024 once customary closing conditions have been met, including
regulatory clearance in certain geographies. The proceeds will
help finance the accelerated M&A plans of the LEAP I 28
strategy.
|
|
ANNUALIZED REVENUE |
COUNTRY/
AREA |
SIGNING/CLOSING DATE |
FIELD OF EXPERTISE |
|
Buildings & Infrastructure |
|
|
IDP Group |
EUR 30m |
Spain |
October 2024 |
Building Information Modeling, Project Management Assistance and
Digital Twin services |
|
Renewables / Sustainability |
|
ArcVera Renewables |
EUR 6m |
USA |
September 2024 |
Finance-grade consulting and technical services for wind, solar,
and battery storage projects |
|
Aligned Incentives |
EUR 3m |
USA |
October 2024 |
Enterprise sustainability planning platform & aggregator |
|
|
|
|
|
|
|
Disposal |
|
|
EUR 133m |
15 countries |
October 2024 |
Food testing business (34 laboratories across 4 continents) |
Year-to-date, the Group acquired or entered into
agreements for:
- The acquisition of seven companies,
representing an annualized cumulated revenue of
c.EUR 80 million.
- The divestment of two companies,
representing an annualized cumulated revenue of
c.EUR 165 million.
For more information, the press releases are
available by clicking here.
CORPORATE SOCIAL RESPONSIBILITY
COMMITMENTS
- Corporate Social
Responsibility (CSR) key indicators
|
|
UNITED NATIONS’
SDGS |
9M 2024 |
9M 2023 |
2028
TARGET |
|
ENVIRONMENT / NATURAL CAPITAL |
|
|
|
|
|
CO2 emissions (Scopes 1 & 2, 1,000
tons)3 |
#13 |
146 |
149 |
107 |
|
SOCIAL & HUMAN CAPITAL |
|
|
|
|
|
Total Accident Rate (TAR)4 |
#3 |
0.24 |
0.24 |
0.23 |
|
Gender balance in senior leadership (EC-II)5 |
#5 |
27.5% |
27.5% |
36% |
|
Number of learning hours per employee (per year)6 |
#8 |
26.4 |
22.9 |
40.0 |
|
GOVERNANCE |
|
|
|
|
|
Proportion of employees trained to the Code of Ethics |
#16 |
98.6% |
96.8% |
99.0% |
- Bureau Veritas received
Gold Medal from EcoVadis
On October 11, 2024, Bureau Veritas was awarded
the Gold Medal from EcoVadis, (with a score of 77/100) recognizing
its commitment to Shaping a Better World. This distinction places
Bureau Veritas in the top 5% of companies rated by EcoVadis, and
highlights its efforts to uphold ethical labor practices, reduce
environmental impact, and promote transparency and responsibility
in business.
- Multiple recognitions by
non-financial rating agencies
Bureau Veritas ranks second among 184 companies
in the S&P Global Corporate Sustainability Assessment (CSA) for
the Professional Services Industry category - encompassing the TIC
sector - with a score of 84/100 for 2024. This achievement
illustrates the engagement of its 83,000 Trust Makers, at all
levels of the company, to advance its sustainability agenda.
MSCI has rated Bureau Veritas AA for its
environmental, social responsibility and governance (ESG)
performance, the same level as in 2023, with a score of 6.3. The
Group has the best score in Environment (10), improved its score in
Social (6.3) and has a score of 5.8 in Governance.
2024 OUTLOOK UPGRADED
Based on the 9-month performance, leveraging a
healthy and growing sales pipeline and strong underlying market
growth, Bureau Veritas now expects to deliver for the full year
2024:
- 9 to 10% organic
revenue growth (from “high single-digit” previously);
- Improvement in
adjusted operating margin at constant exchange rates;
- Strong cash
flow, with a cash conversion7 above 90%.
Q3 2024 BUSINESS REVIEW
MARINE & OFFSHORE
|
IN EUR MILLION |
2024 |
2023 |
CHANGE |
ORGANIC |
SCOPE |
CURRENCY |
|
Q3 revenue |
122.7 |
110.0 |
+11.5% |
+13.2% |
- |
(1.7)% |
|
9M revenue |
374.0 |
338.6 |
+10.5% |
+14.2% |
- |
(3.7)% |
Marine & Offshore delivered a strong 13.2%
organic growth in the third quarter of 2024 (and 14.2% in the first
9 months), with the following trends:
- A strong
double-digit increase in New Construction (43% of
divisional revenue), in a dynamic construction market, led by Asian
countries, especially China.
- Double-digit growth
in Core In-service activity (44% of divisional
revenue), benefiting from volume growth from increased classed
vessels. As of September 30th, 2024, the fleet classed
by Bureau Veritas included 11,913 ships, up 2.4% year on year and
representing 152.3 million Gross Register Tonnage (GRT).
Retrofitting and upgrades to meet new environmental regulations
also contributed to growth.
- Low-single-digit growth in
Services (13% of divisional revenue, including Offshore),
with an upturn in orders in Offshore activities.
The division maintains strong growth momentum as
the maritime industry decarbonizes, renews its fleet, invests in
digitalization, and improves its performance. The Group secured
10.8 million gross tons year-to-date bringing the order book to
26.8 million gross tons, up 24.2% compared to 21.6 million gross
tons at end-September 2023. This is driven by dual fuel ships, LNG
carriers, container ships and specialized vessels.
Sustainability achievements
During the third quarter of 2024, Bureau Veritas
contributed to the development of low carbon emissions technologies
and issued an Approval in Principle (AiP) to French luxury cruises
operator Ponant for its new wind assisted propulsion sailing
passenger vessel.
AGRI-FOOD & COMMODITIES
|
IN EUR MILLION |
2024 |
2023 |
CHANGE |
ORGANIC |
SCOPE |
CURRENCY |
|
Q3 revenue |
322.3 |
305.5 |
+5.5% |
+8.5% |
- |
(3.0)% |
|
9M revenue |
936.2 |
917.1 |
+2.1% |
+5.9% |
- |
(3.8)% |
The Agri-Food & Commodities business
recorded an 8.5% organic revenue growth in the third quarter of
2024 (5.9% on a nine-month basis).
The Oil & Petrochemicals
segment (O&P, 31% of divisional revenue) achieved a high-single
digit organic revenue growth in the third quarter of 2024 despite
geopolitical challenges and weather events in key markets. This
good performance is due to ongoing market share gains in some parts
of Europe, a gradual recovery of the North American operations and
the ramp-up of contracts following recent business development in
the Middle East. Non-trade activities such as Oil Condition
Monitoring-related services are also progressing well.
The Metals & Minerals
business (M&M, 33% of divisional revenue) accelerated its
recovery in the third quarter, posting a double-digit organic
revenue growth in both Upstream (more than two thirds of the
segment revenue) and Trade activities. With gold prices at record
levels, activity grew in many locations around the world, notably
in Australia. The onsite laboratories expansion, and the ramp up of
operations in the Middle East also contributed to the Upstream
business good performance. Trade activities benefited from robust
international trade for copper and other base metals.
In the third quarter of 2024,
Agri-Food (22% of divisional revenue) delivered a
mid–single digit growth on an organic basis. In the
Agri sub-segment, Upstream activities benefited
from positive new developments with key players in Latin America
and Europe, achieving a high-single digit growth. The Trade
activities managed to deliver a mid-single digit organic growth in
a challenging competitive environment. The Food
sub-segment continued to grow mid-single digits organically in the
third quarter, from pricing and services diversification
initiatives. In line with the LEAP | 28 strategy, Bureau Veritas
announced in October that it has entered into an agreement to sell
its food testing business (EUR 133 million in revenue in 2023)
to Mérieux NutriSciences.
In the third quarter of 2024, Government
services (14% of the divisional revenue) recorded a
low-single digit revenue growth on an organic basis. The activity
is particularly strong in some Middle Eastern and African
countries, especially in the Verification of Conformity services.
In Ivory Coast, the Group was awarded a monitoring and inspection
contract for the collection, transport and disposal of household
waste on behalf of the local authorities.
Sustainability achievements
In the third quarter of 2024, Bureau Veritas
continued to leverage its expertise to support clients in
transitioning towards more sustainable and low-carbon practices
through tailored offerings. The Group secured an R&D contract
with a Finnish oil refining company to provide services for product
and feedstock quality optimization. It was also awarded a
laboratory testing services contract for a European leader in
Sustainable Aviation Fuel.
INDUSTRY
|
IN EUR MILLION |
2024 |
2023 |
CHANGE |
ORGANIC |
SCOPE |
CURRENCY |
|
Q3 revenue |
336.0 |
309.0 |
+8.8% |
+23.8% |
(0.5)% |
(14.5)% |
|
9M revenue |
960.0 |
927.3 |
+3.5% |
+19.7% |
(1.8)% |
(14.4)% |
With a 23.8% organic growth increase, the
Industry business once again delivered a strong and broad-based
performance in the third quarter of 2024, with all main segments
growing double-digit. Year-to-date, the Group recorded a 19.7%
growth on an organic basis, primarily driven by the energy sector
which showed high resilience despite increasing uncertainty
globally.
By market, Power &
Utilities (14% of divisional revenue) recorded a high
double-digit growth, with the Opex activities performing well in
some parts of the Middle East and of Latin America, offsetting the
impact of the exit from low-profitable contracts. A good momentum
was maintained in the Capex shop inspection, and design review
services for the nuclear industry. Additionally, the renewable
power generation activities continued its high growth, with 2024
expected to be a record year for solar, wind and hydrogen projects
deployment. This is particularly true in China and the US, with
sustained high levels of customers’ investments and the recent
expansion of the Group’s service offering to better address the
market’s needs.
The Oil & Gas (31% of
divisional revenue) activity remained strong for both Capex and
Opex services. Capex solutions continued to benefit from the
favorable investment cycle, especially in the Middle East and in
Australia. This quarter, the Group secured a key contract to
perform quality assurance and quality control inspections on behalf
of an offshore gas project in Vietnam. Opex services’ growth was
fueled by a series of full inspections in major refineries.
Industry Products Certification
(17% of divisional revenue) performed well, especially in North
America, China and France driven by high demand for pressure vessel
testing, welding inspections, and raw materials testing.
Elsewhere, the Environmental
Testing business (12% of divisional revenue) grew
mid-single digit organically, despite macro conditions and
high-interest rate environment delaying the ramp-up of some
remediation projects.
Sustainability achievements
In the third quarter of 2024, Bureau Veritas
secured several important contracts. This included a contract with
a major energy company for methane emissions measurement of, on the
back of more stringent regulatory requirements. The Group also
conducted a design review for an onshore liquefied hydrogen and
membrane LNG storage tank project in China, demonstrating its
technical expertise in emerging green energy infrastructure.
Additionally, Bureau Veritas was selected to provide certification
services for an offshore wind project in Poland, further
solidifying its position as a trusted partner for sustainable
energy initiatives.
BUILDINGS &
INFRASTRUCTURE
|
IN EUR MILLION |
2024 |
2023 |
CHANGE |
ORGANIC |
SCOPE |
CURRENCY |
|
Q3 revenue |
440.5 |
413.8 |
+6.4% |
+9.3% |
(1.9)% |
(1.0)% |
|
9M revenue |
1,337.2 |
1,282.6 |
+4.3% |
+5.9% |
(0.6)% |
(1.0)% |
The Buildings & Infrastructure (B&I)
business delivered strong organic revenue growth of 9.3% in the
third quarter of 2024, representing a sequential improvement from
the 4.3% organic performance in the first half.
The growth was led by both the
construction-related activities and the
building-in service activity.
The Americas region (29% of
divisional revenue) achieved double-digit organic revenue growth,
with a noticeable sequential improvement in the United States.
Leveraging its diversified portfolio of activities, the US platform
recorded strong double-digit organic growth. The data center and
mission-critical business maintained significant double-digit
organic expansion globally, driven by a volume increase from
growing demand fueled by the AI computing needs, and from pricing
initiatives. Both regulatory-driven Opex services and Capex
infrastructure projects delivered strong growth. Compared to last
year, the volume of real estate transaction-related services picked
up supported by declining interest rates. Growth in Latin America,
moderated as we shift our portfolio in Brazil, with the exit of
public contracts, and a refocus on infrastructure projects.
Business in Europe (49% of
divisional revenue) grew high-single-digit organically. Italy was
amongst the best performers, benefiting from national
infrastructure spending. France had a strong quarter led by its
Opex related activities, benefiting from volume increases,
productivity gains and positive pricing. The Capex-related
activities were slightly up, outperforming the construction market
thanks to their exposure to infrastructure and public works
(including the 2024 Paris Olympic Games).
In the Asia Pacific region (17%
of divisional revenue) organic revenue grew at mid-single-digit.
This was driven by strong performance in South and Southeast Asian
countries, as well as in Australia. China's performance was broadly
stable, supported by activity in the energy-related construction
sector while weak public spending continued to constrain growth in
transport infrastructure.
Lastly, in the Middle East &
Africa region (5% of divisional revenue), Bureau Veritas
maintained a strong double-digit organic revenue growth. This was
primarily driven by the performance in Saudi Arabia, where the
company supports numerous large-scale, high-profile projects.
In October 2024, the Group acquired the IDP
Group. This company is a leading independent provider of Building
Information Modeling, Project Management Assistance and Digital
Twin services for the public and private sector in Spain. This
acquisition will bring key digital enablers that will enhance
Bureau Veritas’s services and operational capabilities in
B&I.
Sustainability achievements
In the third quarter of 2024, Bureau Veritas was selected by
several California school districts to conduct facility
assessments, including energy audits and the development of Net
Zero Energy reduction plans. The Group was also awarded additional
inspections of electrical equipment for electric vehicle charging
stations in Italy.
CERTIFICATION
|
IN EUR MILLION |
2024 |
2023 |
CHANGE |
ORGANIC |
SCOPE |
CURRENCY |
|
Q3 revenue |
124.1 |
106.7 |
+16.3% |
+17.7% |
+2.2% |
(3.6)% |
|
9M revenue |
379.4 |
334.5 |
+13.4% |
+16.5% |
+0.7% |
(3.8)% |
Certification was among the strongest performing
businesses within the Group’s portfolio in the third quarter of
2024 with an organic growth of 17.7%, a similar growth trend to the
last two quarters (9-month organic revenue growth of 16.5%). This
was led by strong volume increases, and robust price escalations
across most geographies. This performance reflects the high market
growth rate where comprehensive brand protection and sustainability
commitments fuel strong customer demand.
QHSE & Specialized Schemes
solutions (55% of the divisional revenue) posted
double-digit growth in the third quarter of the year, as it
benefits from the reoccurrence of recertifications for several
schemes across different industries, such as the automotive sector
IATF. This activity is also supported by the development of
innovative solutions in response to customers’ demand for
customized and voluntary schemes. Additionally, we continued to
develop public outsourcing services to address government and local
authorities’ needs. In line with the recent outsourced government
contracts secured in France, the Group was awarded a food second
party audit and training services in Madrid nursing homes in
Spain.
Sustainability-related solutions &
Digital (Cyber) certification activities (24% of
divisional revenue) also recorded strong double-digit organic
growth. This is mainly fueled by high demand for verification of
carbon and greenhouse gas emissions, services around
forestry-related topics and ESG related supply chain audits ahead
of upcoming tightening regulations. In addition, cybersecurity
certification and assurance services are still benefiting from
excellent market traction resulting in double-digit growth in the
third quarter.
Other solutions, including
Training (21% of the divisional revenue) delivered broadly
stable revenue growth in the third quarter of 2024.
Sustainability achievements
In the third quarter of 2024, Bureau Veritas
continued to grow sustainability reporting assurance services As an
example, in France, the Group helped a small and medium enterprise
to evaluate its CSR maturity, its double materiality analysis and
to complete a gap assessment ahead of CSRD reporting. The Group
also completed the audit of suppliers’ traceability and compliance
with European Deforestation regulations (or EUDR), for a leading
producer of natural rubber in Africa.
CONSUMER PRODUCTS SERVICES
|
IN EUR MILLION |
2024 |
2023 |
CHANGE |
ORGANIC |
SCOPE |
CURRENCY |
|
Q3 revenue |
202.3 |
178.8 |
+13.2% |
+7.5% |
+7.6% |
(1.9)% |
|
9M revenue |
582.8 |
527.9 |
+10.4% |
+7.4% |
+5.8% |
(2.8)% |
The Consumer Products Services division
delivered a 7.5% organic growth performance over the third quarter
of 2024. In the first 9 months, the organic revenue increased by
7.4%.
By geography, Asia showed good organic growth
led mainly by China, Vietnam and Bangladesh.
The Softlines, Hardlines &
Toys segment (accounting for 46% of divisional revenue)
delivered high-single-digit organic growth in Q3 2024. This growth
was driven by volumes recovery. The growth was primarily led by
China and Southeast Asian countries. The Hardlines business was
particularly strong, benefiting from a global recovery, and an
increase in Stock Keeping Units (SKUs).
Healthcare (including Beauty and
Household) (8% of divisional revenue) posted solid
double-digit organic growth for Q3 2024. This was mainly driven by
the performance in the USA as the Group successfully scales the
services of the acquisitions completed in the last two years and
benefited from a favorable market.
Supply Chain & Sustainability
services (14% of divisional revenue) delivered a very good
double-digit performance from audits especially for CSR audits, and
a global strong momentum around social audits and green claim
verification services.
Technology (32% of divisional
revenue) recorded a low-single-digit growth in Q3 2024, still
affected by a global decrease in demand for electronics, wireless
products and new mobility equipment (electrical vehicles, notably
in China). It is a sequential improvement after a negative H1, with
continued good trend in Electrical appliances testing.
Sustainability achievements
During the third quarter of 2024, Transition
Services continued to grow as the Group accompanied clients’ ESG
transformation. Services provided covered a wide range, including
restricted substances list testing program for an Austrian
furniture chain, and environmental emissions management services
for one of the largest clothing companies in China.
.
PRESENTATION
- Q3 2024 revenue
will be presented on Wednesday, October 23, 2024, at 6:00 p.m.
(Paris time)
- A video conference
will be webcast live. Please connect to: Link to video
conference
- The presentation
slides will be available on:
https://group.bureauveritas.com/investors/financial-information/financial-results
- All supporting
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2024 & 2025 FINANCIAL
CALENDAR
- FY 2024 Results:
February 25, 2025 (pre market)
- Q1 2025 Revenue:
April 24, 2025 (pre market)
- Shareholder’s
Meeting: June 19, 2025
- H1 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’ 83,000 employees deliver services
in 140 countries. The company’s technical experts support customers
to address challenges in quality, health and safety, environmental
protection, and sustainability.
Bureau Veritas is listed on Euronext Paris and belongs to the CAC
40 ESG, CAC Next 20, SBF 120 indices and is part of the CAC SBT
1.5° index. Compartment A, ISIN code FR 0006174348, stock symbol:
BVI.
For more information, visit www.bureauveritas.com, and follow us on
LinkedIn and X/Twitter.
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ANALYST/INVESTOR CONTACTS |
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MEDIA CONTACTS |
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Laurent Brunelle |
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Anette Rey |
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+33 (0)1 55 24 76 09 |
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+33 (0)6 69 79 84 88 |
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laurent.brunelle@bureauveritas.com |
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anette.rey@bureauveritas.com |
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Colin Verbrugghe |
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Martin Bovo |
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+33 (0)1 55 24 77 80 |
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+33 (0) 6 14 46 79 94 |
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colin.verbrugghe@bureauveritas.com |
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martin.bovo@bureauveritas.com |
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Karine Ansart
karine.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 2024 REVENUE BY
BUSINESS
|
IN EUR MILLION |
Q3/9M
2024 |
Q3/9M
2023 |
CHANGE |
ORGANIC |
SCOPE |
CURRENCY |
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Marine & Offshore |
122.7 |
110.0 |
+11.5% |
+13.2% |
- |
(1.7)% |
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Agri-Food & Commodities |
322.3 |
305.5 |
+5.5% |
+8.5% |
- |
(3.0)% |
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Industry |
336.0 |
309.0 |
+8.8% |
+23.8% |
(0.5)% |
(14.5)% |
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Buildings & Infrastructure |
440.5 |
413.8 |
+6.4% |
+9.3% |
(1.9)% |
(1.0)% |
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Certification |
124.1 |
106.7 |
+16.3% |
+17.7% |
+2.2% |
(3.6)% |
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Consumer Products |
202.3 |
178.8 |
+13.2% |
+7.5% |
+7.6% |
(1.9)% |
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Total Q3 revenue |
1,547.9 |
1,423.8 |
+8.8% |
+13.0% |
+0.5% |
(4.7)% |
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Marine & Offshore |
374.0 |
338.6 |
+10.5% |
+14.2% |
- |
(3.7)% |
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Agri-Food & Commodities |
936.2 |
917.1 |
+2.1% |
+5.9% |
- |
(3.8)% |
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Industry |
960.0 |
927.3 |
+3.5% |
+19.7% |
(1.8)% |
(14.4)% |
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Buildings & Infrastructure |
1,337.2 |
1,282.6 |
+4.3% |
+5.9% |
(0.6)% |
(1.0)% |
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Certification |
379.4 |
334.5 |
+13.4% |
+16.5% |
+0.7% |
(3.8)% |
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Consumer Products |
582.8 |
527.9 |
+10.4% |
+7.4% |
+5.8% |
(2.8)% |
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Total 9M revenue |
4,569.6 |
4,328.0 |
+5.6% |
+10.5% |
+0.2% |
(5.1)% |
(a)
Q3 and 9M 2023 figures by
business have been restated following a reclassification of
activities impacting mainly the Industry
and Buildings & Infrastructure businesses (c.
€2.6 million in 9M)
APPENDIX 2: 2024 REVENUE BY
QUARTER
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2024 REVENUE BY QUARTER |
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IN EUR MILLIONS |
Q1 |
Q2 |
Q3 |
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Marine & Offshore |
122.1 |
129.2 |
122.7 |
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Agri-Food & Commodities |
297.3 |
316.6 |
322.3 |
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Industry |
295.6 |
328.4 |
336.0 |
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Buildings & Infrastructure |
441.0 |
455.7 |
440.5 |
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Certification |
117.4 |
137.9 |
124.1 |
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Consumer Products |
166.1 |
214.4 |
202.3 |
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Total revenue |
1,439.5 |
1,582.2 |
1,547.9 |
APPENDIX 3: 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.
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 Greenhouse gas
emissions from offices and laboratories, tons of CO2
equivalent for net emissions corresponding to Scopes 1 and 2 over a
period of 12 consecutive months (Q3 2023 to Q2 2024).
4 TAR: Total
Accident Rate (number of accidents with and without lost time x
200,000/number of hours worked).
5 Proportion of women from the Executive Committee to Band II
(internal grade corresponding to a management or executive
management position) in the Group (number of women on a full-time
equivalent basis in a leadership position/total number of full-time
equivalents in leadership positions).
6 Indicator
calculated over a 9-month period for 9M 2024 and 9M 2023, compared
to a 12-month period for 2028 target values.
7 (Net cash generated from operating activities – lease payments +
corporate tax)/adjusted operating profit.
- 2024 10 23_Press Release_Q3 2024 Revenue vDEF
Bureau Veritas (EU:BVI)
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Bureau Veritas (EU:BVI)
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