H1 2024 Key figures2
› Revenue of EUR 3,021.7 million in the first half of 2024, up
4.0% year on year and up 9.2% organically (including 10.4% in the
second quarter) › Adjusted operating profit of EUR 451.9 million,
up 4.1% versus EUR 434.2 million in H1 2023, representing an
adjusted operating margin of 15.0%, up 29 basis points organically
year-on-year › Operating profit of EUR 388.5 million, up 4.2%
versus EUR 372.9 million in H1 2023 › Adjusted net profit of EUR
288.3 million, up 4.3% versus EUR 276.3 million in H1 2023 ›
Attributable net profit of EUR 234.3 million, up 0.8% versus EUR
232.5 million in H1 2023 › Free cash flow of EUR 189.9 million, up
44% year › Adjusted net debt/EBITDA ratio kept at a low level of
1.06x as of June 30, 2024, versus 0.95x last year
H1 2024 Highlights
› Ongoing execution of the new strategy LEAP | 28, announced on
March 20, 2024. The strategy intends to deliver a step change in
growth and performance, built around three pillars: Focused
Portfolio, Performance-led Execution and an Evolved People model ›
Strong growth recorded in most regions (Americas, Middle East,
Africa and Asia-Pacific) › Growth momentum maintained for
sustainability services across the entire portfolio › Acquisition
of four bolt-on companies for a total cumulated annualized revenue
of c. EUR 41 million in line with the LEAP | 28 portfolio strategy
of creating new strongholds in i) Cybersecurity (one acquisition);
ii) Consumer Products Services Technology (three acquisitions) ›
Completion of the EUR 200 million share buyback program (c. 1.6% of
the Group’s shares) announced in March at the Capital Markets Day.
The program was executed in two steps (phase one through the Wendel
Group market placement and phase two directly on the market) ›
Inaugural rated issuance of a EUR 500 million bond following the
assignment of the first long-term A3 credit rating for Bureau
Veritas (with a “stable” outlook) delivered by Moody’s
2024 Outlook upgraded
Leveraging a healthy and growing sales pipeline, high customer
demand for ‘new economy services’ and strong underlying market
growth, Bureau Veritas now expects to deliver for the full year
2024:
› High single-digit organic revenue growth (from mid-to-high
single-digit previously). › Improvement in adjusted operating
margin at constant exchange rates. › Strong cash flow, with a cash
conversion3 above 90%.
The Group expects H2 organic revenue growth to be broadly in
line with H1.
Hinda Gharbi, Chief Executive Officer, commented: “In the first
half of the year, we kick started the execution of our LEAP I 28
strategy which was launched at the end of March 2024. Our H1
results confirm our commitment to a step change in growth and
returns with organic growth of 9.2%, a solid organic margin
improvement of 29 basis points and EPS growth of 16% at constant
currency. I thank all my colleagues around the world for these
excellent results. We are also actively managing our portfolio
through an accelerated M&A program with four acquisitions
completed since the beginning of the year. In addition, we have
completed our EUR 200 million share buyback program announced in
March 2024. Finally, in light of our strong first half performance,
our robust backlog and considering our focused operational
execution, we are upgrading our revenue outlook for 2024.”
H1 2024 KEY FIGURES
The Board of Directors of Bureau Veritas met on July 25, 2024,
and approved the financial statements for the first half of 2024
(H1 2024). The main consolidated financial items are:
IN EUR MILLIONS
H1 2024
H1 2023
CHANGE
CONSTANT CURRENCY
Revenue
3,021.7
2,904.2
+4.0%
+9.3%
Adjusted operating
profit(a)
451.9
434.2
+4.1%
+11.6%
Adjusted operating
margin(a)
15.0%
15.0%
(0)bps
+33bps
Operating profit
388.5
372.9
+4.2%
+12.9%
Adjusted net profit(a)
288.3
276.3
+4.3%
+16.1%
Attributable net profit
234.3
232.5
+0.8%
+14.5%
Adjusted EPS(a)
0.64
0.61
+4.5%
+16.3%
EPS
0.52
0.51
+0.9%
+14.7%
Operating cash-flow
262.4
222.1
+18.1%
+32.6%
Free cash flow(a)
189.9
131.9
+44.0%
+65.0%
Adjusted net financial
debt(a)
1,112.2
930.8
+19.5%
(a) Alternative performance indicators are
presented, defined and reconciled with IFRS in appendices 6 and 8
of this press release
H1 2024 HIGHLIGHTS
› Strong organic revenue growth across the
board throughout the first half
Group revenue in the first half of 2024 increased by 9.2%
organically compared to the first half of 2023, including 10.4% in
the second quarter, benefiting from robust underlying trends across
businesses and geographies.
This is reflected by business as follows:
› Over a third of the portfolio (Marine &
Offshore, Industry, and Certification) achieved robust double-digit
organic revenue growth in the first half, ranging from 14.7% to
17.5%. These divisions benefited from sustained trends in
decarbonization and the energy transition, particularly for Marine
& Offshore and Industry. Additionally, the Certification
segment experienced strong demand for sustainability and ESG-driven
services. › An eighth of the portfolio (Consumer Products Services)
delivered high single-digit organic revenue growth (up 7.3%). The
growth was led by the consumer segment in most geographies and by
its strategy of geography, sector, and services diversification. ›
Half of the portfolio, including Buildings & Infrastructure and
Agri-Food & Commodities, achieved mid-single-digit organic
revenue growth (up 4.3% and 4.6% respectively).
› Solid financial position
At the end of June 2024, the Group's adjusted net financial debt
increased compared to the level as of December 31, 2023, as a
result of the use of cash and cash equivalents linked to the EUR
200 million share buyback program executed in Q2. The Group has a
solid financial structure with most of its maturities beyond
2026.
Bureau Veritas had EUR 1.5 billion in available cash and cash
equivalents, and EUR 600 million in undrawn committed credit lines
as of June 30, 2024. The adjusted net financial debt/EBITDA ratio
was maintained at a low level of 1.06x (from 0.95x last year).
The average maturity of the Group’s financial debt was 4.9
years, with a blended average cost of funds over the half year of
2.9% (excluding the impact of IFRS 16), compared to 2.7% at
December 31, 2023.
› Bureau Veritas shareholders approved the
distribution of a dividend for the 2023 financial year
At the Bureau Veritas Annual Shareholders’ Meeting, shareholders
approved the distribution of a dividend of EUR 0.83 per share for
the 2023 financial year (3rd resolution, approved at 99.99%), paid
in cash on July 4, 2024.
› 2024 share buyback program
The Group executed the EUR 200 million share buyback program
announced on March 20, 2024, as follows:
› an acquisition of c. 0.8% of the Group’s shares or the
equivalent of EUR 100 million on April 5, 2024, completed under the
Wendel placement. › an additional acquisition of the remaining EUR
100 million, completed by the Group through the market in May and
June 2024, of an additional c. 0.8% of its shares.
As of June 30, 2024, the entire program had therefore been
completed.
In accordance with the purpose of the share buyback program
approved by the Annual Shareholders’ Meeting, the shares bought
back will be used for cancellation purposes and for any other
purposes authorized by the Company’s shareholders at the Annual
Shareholders’ Meeting of June 22, 2023.
› First A3 long-term credit rating by
Moody’s and inaugural A3 rated bond issuance of EUR 500 million
with a May 2036 maturity
On April 24, 2024, Bureau Veritas announced that it had been
assigned its first long-term credit rating of A3 by Moody’s, with a
“stable” outlook. This long-term credit rating will help Bureau
Veritas in further diversifying its sources of funding, gaining
enhanced access to capital markets, and managing debt maturities in
line with the Group’s strategy. The full rating report is available
on moodys.com.
Subsequently, on May 16, 2024, the Group announced the
successful completion of a EUR 500 million A3 rated new bond
issuance maturing in May 2036 and carrying a coupon of 3.5%. The
final orderbook amounted to more than EUR 1.5 billion, which
represents three times the targeted amount. Such a high level of
oversubscription enabled Bureau Veritas to price with a final
spread much below initial price indications. This underlines the
strong confidence of investors in Bureau Veritas’ business model as
well as the quality of its credit profile.
This issuance allows Bureau Veritas to seize attractive market
conditions for general corporate purposes, including the
refinancing of its bond maturing in January 2025, thereby
lengthening the average maturity of its debt.
FOCUSED PORTFOLIO
In line with the LEAP | 28 strategy of active portfolio
management and to focus the portfolio on market leadership
positions, Bureau Veritas has activated an M&A program to
develop new market strongholds:
› in Cybersecurity: in July 2024, the
Group signed an agreement to acquire Security Innovation, a
US-based player specialized in software security services focused
on software testing, SDLC advisory (Secure Software Development
Lifecycle) and training. It realized revenues of c. EUR 21 million
in 2023. › in Consumer Technology Testing: the Group signed
definitive agreements to acquire three players in Asia. They will
expand its position in testing and certification services for the
Electrical and Electronics consumer products segment. The acquired
companies’ revenue was a combined c. EUR 20 million in 2023.
ANNUALIZED REVENUE
COUNTRY/
AREA
SIGNING DATE
FIELD OF EXPERTISE
Cybersecurity
Security Innovation
EUR 21m
USA
July
2024
Software security services company focused
on software testing, SDLC advisory & training
Consumer Products
Services
OneTech Corp.
EUR 12m
South Korea
March 2024
Testing and certification services for
Electrical and Electronics consumer products
Kostec Co., Ltd
EUR 5m
South Korea
March 2024
Testing and certification services for
Electrical and Electronics consumer products
Hi Physix Laboratory India
Pvt.
EUR 3m
India
March 2024
Electrical and electronics products
testing and certification services laboratory
For more information, the press release is available by
clicking here. As part of its active portfolio management
strategy, the Group signed an agreement for the divestment of a
non-core technical supervision business on construction projects in
China in June 2024. This business represents less than EUR 30
million in annualized revenue.
CORPORATE SOCIAL RESPONSIBILITY COMMITMENTS
› Corporate Social Responsibility (CSR)
key indicators
UNITED NATIONS’ SDGS
H1 2024
2023
2028 TARGET
ENVIRONMENT / NATURAL CAPITAL
CO2 emissions (Scopes 1 & 2,
1,000 tons)4
#13
147
149
107
SOCIAL & HUMAN CAPITAL
Total Accident Rate (TAR)5
#3
0.25
0.25
0.23
Gender balance in senior
leadership (EC-II)6
#5
28.4%
29.3%
36%
Number of learning hours per
employee (per year)7
#8
13.9
36.1
40.0
GOVERNANCE
Proportion of employees trained
to the Code of Ethics
#16
98.8%
97.4%
99.0%
› Bureau Veritas joins the United Nations
Global Compact
On February 26, 2024, Bureau Veritas announced that it had
joined the United Nations Global Compact, the world’s largest
corporate social responsibility (CSR) 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.
› Strong recognition by non-financial
rating agencies
On March 7, 2024, the Group was ranked first in its category by
Morningstar Sustainalytics. With a 9.1 rating, the Group ranks
first in the ‘Research and Consulting’ category out of 72 companies
and is now classified in the “Negligible risk” category.
› 2024 Transparency Awards
On July 4, 2024, Bureau Veritas was awarded the 2024
Transparency Award by Labrador in the "CAC Large 60" category. This
award acknowledges the CAC Large 60 company with the highest score
across 337 evaluation criteria from three public information
sources: the Universal Registration Document, the Notice of Meeting
for the Annual Shareholders' Meeting and the company website. In
addition, the Group made remarkable progress in the overall ranking
of the most transparent companies, coming 3rd out of the 121
companies evaluated this year.
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, Commodities, Industry and Facilities, for the
Middle East, Caspian and Africa. With this role, the Group aims to
leverage the full potential of the growing market opportunities in
this region. This is a dynamic region undergoing several
developments in natural resources, construction and industrial
sectors. This new regional organization will also allow Bureau
Veritas to strengthen its customer intimacy, to scale solutions
faster and to increase resource utilization.
For more information, the press release is available
by clicking here.
› Maria Lorente Fraguas to be appointed
Executive Vice President and Chief People Officer
On July 25, 2024, the Group announces the appointment of Maria
Lorente Fraguas as Executive Vice President and Chief People
Officer, effective October 1, 2024.
As Bureau Veritas embarks on a new journey with the recent
launch of its strategy LEAP I 28, this appointment will play a key
role in evolving the Group’s people model, ensuring the development
of new strategic skills and developing new ways of working through
tech augmentation.
Maria Lorente Fraguas will be a member of the Group Executive
Committee. She succeeds Kathryn Dolan who decided to pursue career
opportunities outside Bureau Veritas.
2024 OUTLOOK UPGRADED
Leveraging a healthy and growing sales pipeline, high customer
demand for ‘new economy services’ and strong underlying market
growth, Bureau Veritas now expects to deliver for the full year
2024:
› High single-digit organic revenue growth
(from mid-to-high single-digit previously). › Improvement in
adjusted operating margin at constant exchange rates. › Strong cash
flow, with a cash conversion8 above 90%.
The Group expects H2 organic revenue growth to be broadly in
line with H1.
LEAP | 28 STRATEGY
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 improvement8
EPS CAGR8 + DIVIDEND
YIELD
Double-digit returns
CASH
Strong cash conversion10:
above 90%
Over the period of 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 4.0% year on year (up 9.2% on
an organic basis)
Revenue in the first half of 2024 amounted to EUR 3,021.7
million, a 4.0% increase compared to H1 2023.
The organic increase was 9.2% compared to H1 2023 (including
10.4% in the second quarter of 2024) benefiting from solid
underlying trends across most businesses and geographies.
Three businesses delivered very strong organic growth: Marine
& Offshore, up 14.7%, Industry, up 17.5%, and Certification, up
16.0%. Consumer Products Services further recovered, up 7.3%
organically in the first half (including 8.3% in the second
quarter) while both Agri Food & Commodities and Buildings &
Infrastructure grew mid-single digits organically, both showing
sequential improvement in the second quarter.
By geography, growth in the Americas was strong (27% of revenue;
up 10.3% organically), led by a double-digit increase in Latin
America and high single-digit growth in Canada. Europe (35% of
revenue; up 5.1% organically) benefited from high activity levels
in Southern and Eastern parts of the continent. Business in
Asia-Pacific (28% of revenue; up 8.7% organically) accelerated in
the second quarter (up 10.3% organically) led by China, and thanks
to sustained double-digit growth essentially for Australia, India
and Vietnam. Finally, Africa and the Middle East were amongst the
best performing regions (10% of revenue; up 23.5% organically),
supported by Buildings & Infrastructure and energy projects in
the Middle East.
The scope effect was a positive 0.1%, reflecting bolt-on
acquisitions realized in the past few quarters and offset by the
impact of a non-core disposal last year.
Currency fluctuations had a negative impact of 5.3% (including a
negative impact of 5.0% in Q2), mainly due to the strength of the
euro against most currencies.
› Adjusted operating profit up 4.1% to EUR
451.9 million (organic margin up 29 bps)
First half adjusted operating profit increased by 4.1% to EUR
451.9 million. This represents an adjusted operating margin of
15.0% stable compared to the first half of 2023. Organically, the
Group’s margin increased by 29 basis points year on year to 15.3%
while scope had a slight positive impact of 4bps. Foreign exchange
trends were a negative impact of 33bps on the Group’s margin due to
the strength of the euro against other currencies.
CHANGE IN ADJUSTED OPERATING
MARGIN
IN PERCENTAGE AND BASIS POINTS
H1 2023 adjusted operating
margin
15.0%
Organic change
+29bps
Organic adjusted operating
margin
15.3%
Scope
+4bps
Constant currency adjusted
operating margin
15.3%
Currency
(33)bps
H1 2024 adjusted operating
margin
15.0%
The organic adjusted operating margin improved by 29 basis
points with revenue growth and operating leverage delivering higher
margins in Marine & Offshore, Industry, Consumer Products
Services and Certification, partly offsetting lower margins in
Agri-Food & Commodities and Buildings & Infrastructure.
Other adjustment items slightly increased to EUR 63.4 million
versus EUR 61.3 million in the first half of 2023, and
comprised:
- EUR 21.5 million in amortization of intangible assets resulting
from acquisitions (from EUR 21.1 million in H1 2023).
- EUR 1.3 million in write-offs of non-current assets mainly
linked to the commodities-related activities.
- EUR 7.8 million in restructuring costs, relating chiefly to
Consumer Products Services and commodities-related activities
(compared to EUR 18.6 million in H1 2023).
- EUR 32.8 million in net losses on disposals and acquisitions
(net loss of EUR 0.2 million in H1 2023), mainly linked to the
ongoing divestment of non-core B&I activities in China.
Operating profit totaled EUR 388.5 million, up 4.2% compared to
EUR 372.9 million in the first half of 2023.
› Adjusted EPS of EUR 0.64, up 4.5% year
on year and 16.3% at constant currency
Net financial expense amounted to EUR 25.6 million in the first
half of 2024, compared to EUR 15.2 million in the same period one
year earlier.
The improvement in net finance costs to EUR 19.8 million in H1
2024 (compared to EUR 24.6 million in H1 2023) is attributable to
the impact of the redemption of EUR 500 million in September 2023
of the bond program issued in 2016 partially offset by a bond
program of the same amount put in place in mid-2024.
In H1 2024, the Group recorded higher unfavorable exchange rate
effects compared to the previous year, with a loss of EUR 5.8
million (compared to a gain of EUR 9.4 million in the first half of
2023).
The interest cost on pension plans amounted to a negative EUR
1.5 million in H1 2024, stable compared to H1 2023.
Consolidated income tax expense stood at EUR 115.9 million for
H1 2024, compared to EUR 113.2 million for H1 2023.
This represents an effective tax rate (ETR) of 32.0% for the
period, versus 31.6% in H1 2023.
The adjusted effective tax rate decreased by 1.7 percentage
points compared to H1 2023, to 29.0%. 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 234.3 million,
versus EUR 232.5 million in H1 2023.
Earnings per share (EPS) was EUR 0.52, compared to EUR 0.51 in
H1 2023.
Adjusted attributable net profit totaled EUR 288.3 million in H1
2024, up 4.3% versus EUR 276.3 million in H1 2023.
Adjusted EPS stood at EUR 0.64, a 4.5% increase versus H1 2023
(EUR 0.61 per share).
› Strong Free Cash Flow at EUR 189.9
million
The half-year 2024 operating cash flow increased by 18.1% to EUR
262.4 million versus EUR 222.1 million in H1 2023. This was fueled
by a lower working capital requirement outflow of EUR 168.1
million, compared to a EUR 196.2 million outflow in the previous
year, despite strong revenue growth delivered in the second quarter
(up 10.4% organically).
The working capital requirement (WCR) stood at EUR 540.6 million
as of June 30, 2024, compared to EUR 517.6 million as of June 30,
2023. As a percentage of revenue, WCR slightly increased by c.20
basis points to 9.0%, compared to 8.8% at the end of H1 2023.
Purchases of property, plant and equipment and intangible
assets, net of disposals (Net Capex), amounted to EUR 59.9 million
in the first half of 2024, down 21.6% compared to the H1 2023
figure of EUR 76.4 million. The Group’s net capex-to-revenue ratio
decreased to 2.0% as the growth was mainly fueled by non-laboratory
driven activities. It is down 60 basis points from the higher level
of H1 23 (2.6%).
Free cash flow (operating cash flow after tax, interest expenses
and capex) was EUR 189.9 million, compared to EUR 131.9 million in
H1 2023, up 44% year on year. On an organic basis, free cash flow
reached EUR 204.1 million.
CHANGE IN FREE CASH FLOW
IN EUR MILLIONS
Free cash flow for the period
ending on June 30, 2023
131.9
Organic change
+72,2
Organic free cash flow
204.1
Scope
+13.5
Free cash flow at constant
currency
217.6
Currency
(27.7)
Free cash flow for the period
ending on June 30, 2024
189.9
As of June 30, 2024, adjusted net financial debt was EUR 1,112.2
million, i.e. 1.06x trailing
twelve-month EBITDA, compared to 0.92x at December 31, 2023. The
increase in adjusted net financial debt of EUR 176 million versus
December 31, 2023 (EUR 936.2 million) reflects:
› free cash flow of EUR 189.9 million. ›
dividend payments totaling EUR 9.1 million corresponding mainly to
dividends paid to non-controlling interests and withholding taxes
on intra-group dividends. › acquisitions (net) and repayment of
amounts owed to shareholders, accounting for EUR 76.9 million. ›
net share buyback totaling EUR 199.1 million, as part of the
Group’s LEAP | 28 strategy › lease and interest payments (related
to the application of IFRS 16), accounting for EUR 60.9 million. ›
other items that increased the Group's debt by EUR 19.0
million.
H1 2024 BUSINESS REVIEW
MARINE & OFFSHORE
IN EUR MILLIONS
H1 2024
H1 2023
CHANGE
ORGANIC
SCOPE
CURRENCY
Revenue
251.3
228.6
+9.9%
+14.7%
-
(4.8)%
Adjusted Operating Profit
61.6
56.5
+9.1%
Adjusted Operating Margin
24.5%
24.7%
(20)bps
+88bps
-
(108)bps
Marine & Offshore was among the strongest performing
businesses within the Group’s portfolio in the first half of 2024
with organic growth of 14.7% (including 15.8% in the second
quarter), with the following trends:
› A strong double-digit increase in New
Construction (41% of divisional revenue), in a buoyant
construction market, supported by the conversion of the
acceleration of new orders in Q1 and Q2 despite some capacity
constraints in shipyards. › Double-digit growth in Core
In-service activity (46% of divisional revenue), benefiting
from volume growth led by the increase in the number of classed
vessels, coupled with the retrofitting/upgrading activities to
address the new coming environmental regulations. On June 30, 2024,
the fleet classed by Bureau Veritas included 11,894 ships, up 2.7%
year on year and representing 151.7 million of Gross Register
Tonnage (GRT). › Mid-single-digit growth in Services (13% of
divisional revenue, including Offshore), benefiting from good
commercial development of non-class services, including consulting
services around ship energy efficiency.
The division continues to benefit from multi-year growth
momentum as the maritime industry decarbonizes, renews its fleet
and becomes more energy efficient. The Group secured 7.4 million
gross tons at the end of June 2024, bringing the order book to 26.0
million gross tons, up 27.5% compared to 20.4 million gross tons at
end-June 2023. This is driven by LNG fueled ships and specialized
vessels.
The adjusted operating margin for the half year was maintained
at a healthy 24.5% on a reported basis compared to 24.7% in H1
2023, negatively impacted by foreign exchange effects (108 basis
points). Organically, it rose by 88 basis points, benefiting from
pricing, operating leverage and a positive mix.
Sustainability achievements
During the second quarter of 2024, Bureau Veritas issued an
Approval in Principle (AiP) to China Ship Design & Research
Centre (CSDC) for its latest ammonia-fueled medium-range chemical
tanker design, leading the sector towards a greener and more
sustainable future.
AGRI-FOOD & COMMODITIES
IN EUR MILLIONS
H1 2024
H1 2023
CHANGE
ORGANIC
SCOPE
CURRENCY
Revenue
613.9
611.5
+0.4%
+4.6%
-
(4.2)%
Adjusted Operating Profit
75.6
82.3
(8.2)%
Adjusted Operating Margin
12.3%
13.5%
(115)bps
(90)bps
-
(25)bps
The Agri-Food & Commodities business delivered 6.0% organic
revenue growth in the second quarter of 2024, thus achieving 4.6%
revenue growth on an organic basis in the first half of the
year.
The Oil & Petrochemicals segment (O&P, 32% of
divisional revenue) recorded a high-single-digit increase in
organic revenue in the first half of the year, with the second
quarter growth primarily stemming from focused business development
with key accounts in North America and the Middle East. Strong
momentum was also maintained in Europe, where the Group saw market
share gains. Asian activities are gradually recovering, with
favorable perspectives in the non-trade activities such as Oil
Condition Monitoring-related services.
After a stable performance in the first quarter, the Metals
& Minerals segment (M&M, 31% of divisional revenue)
showed signs of recovery in the second quarter with
low–single-digit organic revenue growth. The Upstream business
(which represents more than two-thirds of the divisional revenue)
has been facing a slow start to the year on the back of a
challenging macro environment. Early signs of recovery have been
observed with high gold prices stimulating a pickup in exploration
drillings. The Group continued to execute its on-site laboratory
development strategy, with double-digit growth achieved in the
first half and new contracts secured in Chile and West Africa.
Trade activities delivered mid-to-high single-digit growth in the
first half, with good traction in the second quarter especially in
China and India.
In the first half of 2024, Agri-Food (23% of divisional
revenue) posted high–single-digit growth on an organic basis. The
Agri sub-segment was boosted by growth in both Upstream and Trade
activities. The growth was particularly strong in the Middle East
in the second quarter, owing to sustained business development and
key contract wins in many countries. Additionally, the Americas
benefited from excellent crop yields despite floods in Brazil. The
Food business grew mid-single digits organically, owing to the
continued recovery of the Australian activities from the
diversification strategy and price increases.
Government services (14% of the divisional revenue)
delivered a stable year –on year organic growth in the first half
of the year, due mainly to unfavorable comparables and expected
contract cycles. These were partly offset by the good performance
of Verification of Conformity contracts in some Middle East
countries in the second quarter of 2024, with a promising pipeline
of new opportunities for Q3 onwards.
The adjusted operating margin for the Agri-Food &
Commodities business declined to 12.3%, down 115 basis points
compared to last year. This was attributed to a negative business
mix effect (due to the soft performance of Metals & Minerals)
and negative forex impact.
Sustainability achievements
In the first half of 2024, Bureau Veritas delivered several
sustainability services to its customers, ranging from services
around fugitive emissions commodities, and Green Objects such as
sustainable aviation fuel or traceability for wood products.
INDUSTRY
IN EUR MILLIONS
H1 2024
H1 2023
CHANGE
ORGANIC
SCOPE
CURRENCY
Revenue
624.0
617.4
+1.1%
+17.5%
(2.4)%
(14.0)%
Adjusted Operating Profit
79.3
76.1
+4.2%
Adjusted Operating Margin
12.7%
12.3%
+38bps
+92bps
+14bps
(68)bps
Industry achieved a strong organic revenue increase of 17.5% in
the first half of 2024, including 18.2% growth in the second
quarter led by most businesses and geographies.
Customer spending remains strong in all energy sectors, driven
by energy security and transition needs. Across all industrial
sectors, the Group sees good growth momentum.
By market, the stability in Power & Utilities (13% of
divisional revenue) continued to reflect the business
transformation undertaken in Latin America, where the decision was
made last year to exit low-profitability contracts. In Europe, the
stable growth in the nuclear power generation reflects the ramp-up
of QA/QC inspection projects in the UK and France offsetting the
completion of the French EPR (European pressurized reactor)
Flamanville 3 project.
Within Power & Utilities, Renewable Power Generation
activities (solar, wind, hydrogen) continued their growth momentum
with double-digit organic performance in most geographies. The US
led the growth with the execution of a large number of solar
projects. China Renewables spending remains strong driving a
sustained growth dynamic.
In Oil & Gas (32% of divisional revenue), activity
remained strong, with double digits organically in the first half.
Both Capex and Opex services increased substantially across most
geographies as they continued to capitalize on a favorable
investment cycle, the Group’s recognized expertise and its global
capabilities. The growth was broad across the United States, Latin
America, the Middle East, and Asia.
Industry Products Certification (18% of divisional
revenue) grew double-digits organically. This growth was driven by
price increases and increased activity in Pressure & Welding
and Electromechanical & Advanced Technologies sub-segments.
Growth was particularly strong in the Asia Pacific and Middle East
regions.
Elsewhere, the Environmental Testing business (10% of
divisional revenue) grew high-single digits organically. In Canada,
the remediation works benefited from favorable weather conditions
during the first quarter, further bolstering the segment's
performance.
Industry’s adjusted operating margin for the half year increased
by 38 basis points to 12.7%. Organically, it rose by 92 basis
points benefiting from operational leverage and more selectivity
when it comes to profitability.
Sustainability achievements
In the second quarter of 2024, the Group was awarded a contract
in California (USA) to deliver Project Management services for the
removal of obsolete wind turbine generators and the installation
with 25 new ones as well as a new battery energy storage system.
The Group was also selected for an offshore wind farm certification
in Taiwan for a large French electricity producer. Lastly, the
Group is expected to deliver a third-party evaluation of two
hydrogen locomotive projects, capable of supplying power in the
absence of a catenary for a large rail manufacturer.
BUILDINGS & INFRASTRUCTURE
IN EUR MILLIONS
H1 2024
H1 2023
CHANGE
ORGANIC
SCOPE
CURRENCY
Revenue
896.7
869.7
+3.1%
+4.3%
-
(1.2)%
Adjusted Operating Profit
104.3
106.4
(2.0)%
Adjusted Operating Margin
11.6%
12.2%
(60)bps
(53)bps
-
(7)bps
The Buildings & Infrastructure (B&I) business recorded
organic revenue growth of 4.3% in the first half (including 4.9%
growth in the second quarter), with growth in most geographies.
During the period, the construction-related activities
outperformed the building-in service activity.
The Americas region (27% of divisional revenue) recorded
solid growth with noticeable improvement in the second quarter. The
US platform delivered mid-single-digit organic revenue growth and
continued to capitalize on its diversified portfolio of activities.
The data center commissioning business maintained strong
double-digit organic growth thanks to an uplift in demand for its
services from both new and existing clients in most regions
globally, combined with pricing initiatives. This is due to the
ongoing growth in data generation, cloud computing and AI.
Double-digit growth was also achieved in both Opex-related services
and the Capex-infrastructure business. Code compliance maintained
robust activity thanks to housing expansion in central and east
regions. In Latin America, the strong growth in both Brazil and
Chile was mitigated by contracts termination in Argentina.
Business in Europe (50% of divisional revenue) was robust
overall. Most countries contributed to the growth, with a leading
Italy's performance from continued infrastructure spending of the
National Recovery and Resilience Plan (NRRP). France continues to
grow with Capex-related activities outperforming thanks to the
group’s wins in infrastructure and public works (including the 2024
Paris Olympic Games), which largely offset the declining
residential market segment. Opex services, representing three
quarters of the country’s revenue, was resilient and grew from
positive pricing and an uptake of new services.
The Asia Pacific region (19% of divisional revenue)
achieved a high single-digit organic revenue increase led by high
growth in South and Southeastern Asian countries and Australia.
China had a stable performance driven by energy-related
construction activity. Weak public spending remains a constraint
for growth in transport infrastructure.
Lastly, in the Middle East & Africa region (4% of
divisional revenue), the Group maintained its strong momentum,
delivering double-digit organic revenue growth primarily driven by
the performance in Saudi Arabia, where it benefited from the
development of numerous megaprojects.
Adjusted operating margin for the half year slightly eroded by
60 basis points to 11.6% from 12.2% in the prior year. This
reflects the impact of low activity in China which was not fully
offset by the US improvement.
Sustainability achievements
In the second quarter of 2024, in France, the Group signed an
exclusive contract with the French National Housing Agency / ANAH
(Agence Nationale de l'Habitat) to deliver energy performance and
efficiency checks on projects financed under the French Energy
management subsidies scheme, "Ma Prime Rénov’”. The Group was also
selected for a multi-year program by the California Olympics
Committee to provide project management services for the rollout of
fast EV charging stations.
CERTIFICATION
IN EUR MILLIONS
H1 2024
H1 2023
CHANGE
ORGANIC
SCOPE
CURRENCY
Revenue
255.3
227.9
+12.0%
+16.0%
-
(4.0)%
Adjusted Operating Profit
50.0
41.7
+19.9%
Adjusted Operating Margin
19.6%
18.3%
+128bps
+154bps
-
(26)bps
With another stellar performance in the second quarter of 2024,
the Certification business posted a strong double-digit organic
growth in the first half of the year at 16.0%, with a strong
performance across all geographies. This was led by increasing
volumes and robust price escalations.
QHSE & Specialized Schemes solutions (50% of the
divisional revenue) posted double-digit growth in the first half of
the year, with strong traction from the recertification year
occurring for several schemes across different industries. The
certification market benefits from a dynamic of innovation in
response to consumers’ needs for customized and voluntary schemes.
As an example, Bureau Veritas recently delivered the “Origine
France Garantie” label for two car models produced by the French
car manufacturer Renault, making them the first full electric
vehicles to obtain this certification.
Sustainability-related solutions & Digital (Cyber)
certification activities (31% of divisional revenue) also
recorded very strong double-digit organic growth, with excellent
ongoing momentum around carbon services. With double-digit growth
in the second quarter of the year, the suite of services and
solutions delivered by Bureau Veritas on forestry-related topics is
developing strongly. This performance is driven by market share
gains, primarily in the US and in China, as well as a favorable
regulatory environment. For example, the soon-to-be implemented
EUDR regulation is creating new business opportunities at the
European level. Finally, cybersecurity certification and assurance
services are still benefiting from excellent market traction
driving double-digit growth in the first half of the year.
Other solutions, including Training (19% of the
divisional revenue) recorded broadly stable revenue growth in the
first half of 2024.
The adjusted operating margin for the half year strongly
increased by 128 basis points to 19.6%, compared to 18.3% in the
prior year. This reflects sound operational leverage and a
favorable business mix.
Sustainability achievements
In the first half of 2024, Bureau Veritas continued to grow its
assurance of sustainability reporting activities. In France, it
helped an IT services provider to prepare for CSRD reporting, and
to identify material sustainability issues associated with the
firm’s activities, thus measuring gaps and developing mitigation
plans for compliance. The Group was also selected by a global dairy
products company to carry out ethical trade and responsible
sourcing audits in 125 sites in Mexico.
CONSUMER PRODUCTS SERVICES
IN EUR MILLIONS
H1 2024
H1 2023
CHANGE
ORGANIC
SCOPE
CURRENCY
Revenue
380.5
349.1
+9.0%
+7.3%
+4.9%
(3.2)%
Adjusted Operating Profit
81.1
71.2
+13.9%
Adjusted Operating Margin
21.3%
20.4%
+92bps
+134bps
(31)bps
(11)bps
The Consumer Products Services division delivered a 7.3% organic
growth performance over the first half of 2024, (including 8.3% in
the second quarter), led by all sub-segments excluding
Technology.
By geography, Asia showed good improvement led by China and
Southeast and South Asian countries such as Vietnam and Bangladesh.
The Americas also continued to benefit from the geographical,
sector and services diversification strategy.
The Softlines, Hardlines & Toys segment (accounting
for 48% of divisional revenue) delivered double-digit organic
growth in the first half of 2024. This growth was driven by a
recovery in volumes, which was attributed to the end of destocking
and early shipments in response to logistics delays from the Red
Sea shipping disruption. The growth was led by China and South East
Asian countries exporting to the American market. 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 during
the first half of the year led by the US operations. This was
driven by the performance of global accounts, particularly the
recently acquired Advanced Testing Laboratory (ATL) which benefited
from pricing initiatives and an expanded scope of services.
Supply Chain & Sustainability services (14% of
divisional revenue) delivered a very good double-digit performance
with CSR audits and transition services leading, thanks to a global
strong momentum around social audits and green claim verification
services.
Technology (30% of divisional revenue) saw a
mid-single-digit contraction in the first half of 2024, still
affected by a global decrease in demand for electronics, wireless
products and new mobility equipment (electrical vehicles, notably
in China). The second quarter showed an increase in the development
and manufacturing of servers’ technologies to respond to AI market
needs. Additionally, electrical appliances performed well and
benefited from improved consumer spending.
In line with LEAP I 28 strategy, the Group continued to invest
in the new stronghold of Consumer Technology, with the closing of
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.
Adjusted operating margin for the half year increased by 92
basis points to 21.3% from 20.4% in the prior year. Organically it
rose by 134 basis points thanks to good operational leverage,
offset by a negative scope (31bps) and limited forex effects.
Sustainability achievements
During the first half of 2024, Transition Services continued to
grow as the Group accompanied clients’ ESG transformation. Services
provided covered a wide range, including traceability Audits,
Responsible Chemicals Testing, Materials Testing and Eco-Design to
name a few. The Group was also awarded a contract with a DIY
company in Portugal to deliver Sustainable Claims Certification
services. It also secured several chemical RSL (Restricted
Substances List) testing programs for different luxury brands.
PRESENTATION
› H1 2024 revenue will be presented on Thursday, July 25, 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 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
2024 & 2025 FINANCIAL CALENDAR
› Q3 2024 Revenue: October 23, 2024 (post market) › FY 2024
Results: February 25, 2025 (pre market) › Q1 2025 Revenue: April
24, 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.
Our information is certified with blockchain technology. Check
that this press release is genuine at www.wiztrust.com.
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: Q2 AND H1 2024 REVENUE BY BUSINESS
IN EUR MILLIONS
Q2/H1 2024
Q2/H1 2023
CHANGE
ORGANIC
SCOPE
CURRENCY
Marine & Offshore
129.2
115.6
+11.8%
+15.8%
-
(4.0)%
Agri-Food & Commodities
316.6
308.9
+2.5%
+6.0%
-
(3.5)%
Industry
328.4
322.4
+1.9%
+18.2%
(2.3)%
(14.0)%
Buildings &
Infrastructure
455.7
437.8
+4.1%
+4.9%
-
(0.8)%
Certification
137.9
120.9
+14.1%
+18.0%
-
(3.9)%
Consumer Products
214.4
194.2
+10.4%
+8.3%
+4.4%
(2.3)%
Total Q2 revenue
1,582.2
1,499.8
+5.5%
+10.4%
+0.1%
(5.0)%
Marine & Offshore
251.3
228.6
+9.9%
+14.7%
-
(4.8)%
Agri-Food & Commodities
613.9
611.5
+0.4%
+4.6%
-
(4.2)%
Industry
624.0
617.4
+1.1%
+17.5%
(2.4)%
(14.0)%
Buildings &
Infrastructure
896.7
869.7
+3.1%
+4.3%
-
(1.2)%
Certification
255.3
227.9
+12.0%
+16.0%
-
(4.0)%
Consumer Products
380.5
349.1
+9.0%
+7.3%
+4.9%
(3.2)%
Total H1 revenue
3,021.7
2,904.2
+4.0%
+9.2%
+0.1%
(5.3)%
(a) Q2 and H1 2023 figures by business have been restated
following a reclassification of activities impacting mainly the
Industry and Buildings & Infrastructure businesses (c. €0.9
million in H1)
APPENDIX 2: HALF-YEAR 2024 REVENUE BY QUARTER
2024 REVENUE BY QUARTER
IN EUR MILLIONS
Q1
Q2
Marine & Offshore
122.1
129.2
Agri-Food & Commodities
297.3
316.6
Industry
295.6
328.4
Buildings &
Infrastructure
441.0
455.7
Certification
117.4
137.9
Consumer Products
166.1
214.4
Total revenue
1,439.5
1,582.2
APPENDIX 3: ADJUSTED OPERATING PROFIT AND MARGIN BY
BUSINESS
IN EUR MILLIONS
ADJUSTED OPERATING PROFIT
ADJUSTED OPERATING MARGIN
H1 2024
H1 2023
CHANGE (%)
H1 2024
H1 2023
CHANGE
(BASIS POINTS)
Marine & Offshore
61.6
56.5
+9.1%
24.5%
24.7%
(20)
Agri-Food & Commodities
75.6
82.3
(8.2)%
12.3%
13.5%
(115)
Industry
79.3
76.1
+4.2%
12.7%
12.3%
+38
Buildings &
Infrastructure
104.3
106.4
(2.0)%
11.6%
12.2%
(60)
Certification
50.0
41.7
+19.9%
19.6%
18.3%
+128
Consumer Products
81.1
71.2
+13.9%
21.3%
20.4%
+92
Total Group
451.9
434.2
+4.1%
+15.0%
+15.0%
+0
APPENDIX 4: EXTRACTS FROM THE HALF-YEAR CONSOLIDATED
FINANCIAL STATEMENTS Extracts from the half-year consolidated
financial statements audited and approved on July 25, 2024 by the
Board of Directors. The audit procedures for the half-year
financial statements have been undertaken and the Statutory
Auditors’ report has been published.
CONSOLIDATED INCOME STATEMENT
IN EUR MILLIONS
H1 2024
H1 2023
Revenue
3,021.7
2,904.2
Service costs rebilled to
clients
94.9
88.0
Revenue and services costs
rebilled to clients
3,116.6
2,992.2
Purchases and external
charges
(948.8)
(916.9)
Personnel costs
(1,598.7)
(1,532.6)
Taxes other than on income
(23.3)
(29.1)
Net (additions to)/reversals of
provisions
(8.4)
(11.1)
Depreciation and amortization
(127.2)
(135.4)
Other operating income and
expense, net
(21.7)
5.8
Operating profit
388.5
372.9
Share of profit of
equity-accounted companies
(0.2)
0.3
Operating profit after share
of profit of equity-accounted companies
388.3
373.2
Income from cash and cash
equivalents
22.6
22.4
Finance costs, gross
(42.4)
(47.0)
Finance costs, net
(19.8)
(24.6)
Other financial income and
expense, net
(5.8)
9.4
Net financial expense
(25.6)
(15.2)
Profit before income
tax
362.7
358.0
Income tax expense
(115.9)
(113.2)
Net profit
246.8
244.8
Non-controlling interests
(12.5)
(12.3)
Attributable net
profit
234.3
232.5
Earnings per share (in
euros):
Basic earnings per share
0.52
0.51
Diluted earnings per share
0.51
0.51
CONSOLIDATED STATEMENT OF FINANCIAL
POSITION
IN EUR MILLIONS
JUNE 30, 2024
DEC. 31 2023
Goodwill
2,181.7
2,127.4
Intangible assets
366.6
360.0
Property, plant and equipment
418.4
389.0
Right-of-use assets
372.0
391.5
Non-current financial assets
99.3
108.9
Deferred income tax assets
125.9
136.6
Total non-current
assets
3,563.9
3,513.4
Trade and other receivables
1,664.9
1,584.5
Contract assets
323.5
325.9
Current income tax assets
78.5
33.5
Derivative financial
instruments
3.3
4.1
Other current financial
assets
7.1
9.1
Cash and cash equivalents
1,522.4
1,173.9
Total current assets
3,599.7
3,131.0
Assets held for sale
38.0
-
TOTAL ASSETS
7,201.6
6,644.4
Share capital
54.6
54.5
Retained earnings and other
reserves
1,575.4
1,881.6
Equity attributable to owners
of the Company
1,630.0
1,936.1
Non-controlling interests
67.8
57.7
Total equity
1,697.8
1,993.8
Non-current borrowings and
financial debt
2,098.9
2,079.7
Non-current lease liabilities
302.5
319.7
Other non-current financial
liabilities
59.7
73.7
Deferred income tax
liabilities
89.9
85.0
Pension plans and other long-term
employee benefits
143.8
147.2
Provisions for other liabilities
and charges
71.1
72.2
Total non-current
liabilities
2,765.9
2,777.5
Trade and other payables
1,178.8
1,273.4
Contract liabilities
269.0
257.2
Current income tax
liabilities
126.6
98.5
Current borrowings and financial
debt
535.4
31.2
Current lease liabilities
109.0
107.5
Derivative financial
instruments
3.6
3.3
Other current financial
liabilities
480.1
102.0
Total current
liabilities
2,702.5
1,873.1
Liabilities held for sale
35.4
-
TOTAL EQUITY AND
LIABILITIES
7,201.6
6,644.4
CONSOLIDATED STATEMENT OF CASH
FLOWS
IN EUR MILLIONS
H1 2024
H1 2023
Profit before income
tax
362.7
358.0
Elimination of cash flows from
financing and investing activities
7.9
16.1
Provisions and other non-cash
items
53.7
13.2
Depreciation, amortization and
impairment
127.3
135.3
Movements in working capital
requirement attributable to operations
(168.1)
(196.2)
Income tax paid
(121.1)
(104.3)
Net cash generated from
operating activities
262.4
222.1
Acquisitions of subsidiaries and
activities, net of acquired cash
(70.0)
(14.0)
Purchases of property, plant and
equipment and intangible assets
(61.6)
(79.8)
Proceeds from sales of property,
plant and equipment and intangible assets
1.7
3.4
Purchases of non-current
financial assets
(4.8)
(5.2)
Proceeds from sales of
non-current financial assets
4.3
5.1
Change in loans and advances
granted
0.2
1.8
Net cash used in investing
activities
(130.2)
(88.7)
Capital increase
12.5
2.9
Purchases/sales of treasury
shares
(199.2)
(1.1)
Dividends paid
(9.1)
(13.3)
Increase in borrowings and other
debt
492.0
-
Repayment of borrowings and other
debt
(6.2)
(0.1)
Repayment of amounts owed to
shareholders
(6.9)
(0.2)
Repayment of lease liabilities
and interest
(60.9)
(63.9)
Interest paid
(12.6)
(13.8)
Net cash generated from/(used
in) financing activities
209.6
(89.5)
Impact of currency translation
differences
6.2
(16.5)
Net increase/(decrease) in
cash and cash equivalents
348.0
27.4
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
1,518.1
1,683.1
o/w cash and cash equivalents
1,522.4
1,687.7
o/w bank overdrafts
(4.3)
(4.6)
APPENDIX 5: BREAKDOWN OF NET FINANCIAL EXPENSE
NET FINANCIAL EXPENSE
IN EUR MILLIONS
H1 2024
H1 2023
Finance costs, net
(19.8)
(24.6)
Foreign exchange gains
8.5
14.2
Interest cost on pension
plans
(1.5)
(1.5)
Other
(12.8)
(3.3)
Net financial expense
(25.6)
(15.2)
APPENDIX 6: ALTERNATIVE PERFORMANCE INDICATORS
ADJUSTED OPERATING PROFIT
IN EUR MILLIONS
H1 2024
H1 2023
Operating profit
388.5
372.9
Amortization of intangible assets
resulting from acquisitions
21.5
21.1
Impairment and retirement of
non-current assets
1.3
21.4
Restructuring costs
7.8
18.6
Gains and losses on disposals of
businesses and other income and expenses relating to
acquisitions
32.8
0.2
Total adjustment items
63.4
61.3
Adjusted operating
profit
451.9
434.2
CHANGE IN ADJUSTED OPERATING
PROFIT
IN EUR MILLIONS
H1 2023 adjusted operating
profit
434.2
Organic change
+49.1
Organic adjusted operating
profit
483.4
Scope
+1.5
Constant currency adjusted
operating profit
484.9
Currency
(32.9)
H1 2024 adjusted operating
profit
451.9
ADJUSTED EFFECTIVE TAX RATE
IN EUR MILLIONS
H1 2024
H1 2023
Profit before income tax
362.7
358.0
Income tax expense
(115.9)
(113.2)
ETR(a)
32.0%
31.6%
Adjusted ETR(b)
29.0%
30.7%
- Effective tax rate (ETR) = Income tax expense/Profit before
income tax.
- 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 MILLIONS
H1 2024
H1 2023
Attributable net profit
234.3
232.5
EPS(a) (€ per share)
0.52
0.51
Adjustment items
63.4
61.3
Tax impact on adjustment
items
(7.7)
(15.6)
Non-controlling interest on
adjustment items
(1.7)
(1.9)
Adjusted attributable net
profit
288.3
276.3
Adjusted EPS(a) (€ per share)
0.64
0.61
(a) Calculated using the weighted
average number of shares: 451,680,634 in H1 2024 and 452,412,873 in
H1 2023.
CHANGE IN ADJUSTED ATTRIBUTABLE
NET PROFIT
IN EUR MILLIONS
H1 2023 adjusted attributable
net profit
276.3
Organic change and scope
+44.4
Adjusted attributable net
profit at constant currency
320.7
Currency
(32.4)
H1 2024 adjusted attributable
net profit
288.3
FREE CASH FLOW
IN EUR MILLIONS
H1 2024
H1 2023
Net cash generated from operating
activities (operating cash flow)
262.4
222.1
Net purchases of property, plant
and equipment and intangible assets
(59.9)
(76.4)
Interest paid
(12.6)
(13.8)
Free cash flow
189.9
131.9
CHANGE IN NET CASH GENERATED FROM
OPERATING ACTIVITIES
IN EUR MILLIONS
Net cash generated from
operating activities at June 30, 2023
222.1
Organic change
+65.2
Organic net cash generated
from operating activities
287.3
Scope
+7.1
Net cash generated from
operating activities at constant currency
294.4
Currency
(32.0)
Net cash generated from
operating activities at June 30, 2024
262.4
ADJUSTED NET FINANCIAL DEBT
IN EUR MILLIONS
JUNE 30, 2024
DEC. 31 2023
Gross financial debt
2,634.3
2,110.9
Cash and cash equivalents
(1,522.4)
(1,173.9)
Consolidated net financial
debt
1,111.9
937.0
Currency hedging instruments
0.3
(0.8)
Adjusted net financial
debt
1,112.2
936.2
APPENDIX 7: 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;
- gains and losses on disposals of subsidiaries and businesses
(including fair value adjustment when applicable) and other income
and expenses relating to acquisitions (fees and costs on
acquisitions of businesses, contingent consideration on
acquisitions of businesses);
- restructuring costs.
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 first half of 2024 and 2023.
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. Consolidated EBITDA is
used by the Group to track its bank covenants.
1 At constant currency. 2 Alternative performance indicators are
presented, defined and reconciled with IFRS in appendix 2 of this
press release. 3 (Net cash generated from operating activities –
lease payments + corporate tax)/adjusted operating profit. 4
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 (Q2 2023 to Q1 2024). 5 TAR: Total
Accident Rate (number of accidents with and without lost time x
200,000/number of hours worked). 6 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). 7 Indicator calculated over a 6-month period for H1
2024, compared to a 12-month period for 2028 target values. 8 (Net
cash generated from operating activities – lease payments +
corporate tax)/adjusted operating profit 9 At constant currency. 10
(Net cash generated from operating activities – lease payments +
corporate tax)/adjusted operating profit.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240725825440/en/
ANALYST/INVESTOR
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
MEDIA 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
Grafico Azioni Bureau Veritas (EU:BVI)
Storico
Da Giu 2024 a Lug 2024
Grafico Azioni Bureau Veritas (EU:BVI)
Storico
Da Lug 2023 a Lug 2024