2023 Full-Year Performance of the World’s Top Three Testing Organizations (SGS, Eurofins, BV)

The world’s top three testing organizations all achieved over 7% growth in 2023, with SGS maintaining its position as the global leader in the testing industry by revenue. 2023 performance of the world’s top three testing organizations—revenue figures only: World No. 1 Testing Organization (by Revenue) SGS 2023 Full-Year Performance 1.1 SGS 2023 Full-Year Performance ・ Revenue reached CHF 6.622 billion, with all business lines delivering a robust 8.1% organic growth. This included double-digit growth in Commercial Assurance (formerly Knowledge) and high single-digit growth in Natural Resources, and in Industrial & Environment. ・ Adjusted operating income amounted to CHF 971 million, representing 6.3% organic growth. The adjusted operating profit margin stood at 14.7%, down 0.7 percentage points year-on-year—of which 0.5 percentage points were attributable to adverse foreign exchange impacts. ・ Operating cash flow totaled CHF 1.123 billion, resulting in free cash flow of CHF 604 million—a 25.6% increase—driven by reduced net working capital requirements and lower capital expenditures. "In 2023, SGS delivered outstanding organic growth and a significant increase in free cash flow, powered by its broad portfolio. All business lines and regions contributed to this achievement, with particularly strong growth in sustainability services, cybersecurity, ESG assurance, and consulting. This is a powerful platform for growth," said CEO Frankie Ng. "As SGS embarks on an exciting new chapter, I assure our incoming CEO, Géraldine Picaud, of my unwavering and full support." 1.2 Launch of the 2027 Strategy: Accelerate Growth, Build Trust Today, SGS launched its 2027 strategy—"Accelerate Growth, Build Trust"—to drive profitable growth, streamline the organization, and deliver attractive returns to stakeholders. It rests on three powerful value drivers: Growth, Performance & Agility, and Strong Financial Position. ・ Growth: The Group will capitalize on the robust 4–5% annual growth of the CHF 190 billion testing, inspection, and certification (TIC) industry, investing in higher-potential segments and geographies—including sustainability and digital services, and the North American market. ・ Performance & Agility: SGS will implement a rigorously cost-controlled operating model and a leaner corporate structure. This simplification is expected to yield CHF 100 million in cost savings, reaching the new run-rate by end-2025. A newly appointed 12-member Executive Committee will strengthen accountability. ・ Strong Financial Position: SGS will ensure strict value creation, maintain a solid investment-grade credit rating—leaving ample headroom for potential additional debt drawdowns. Combined with strong multi-year free cash flow and the Board’s proposal for the 2023 dividend (offering shareholders the choice between stock or cash), the Company will be well positioned to fund growth through value-accretive, synergistic acquisitions—and continue delivering attractive shareholder returns. 1.3 2027 Mid-Term Targets The 2027 strategy aims to achieve growth in both revenue and profitability.

Annual Report | SGS Group’s Outstanding 2024 Performance

Recently, SGS—the internationally recognized testing, inspection, and certification (TIC) organization—released its full-year 2024 report, achieving a record-breaking revenue of CHF 6.794 billion, representing 7.5% organic growth. Operational Highlights All business units and regions jointly drove a robust 7.5% organic growth. • The Testing & Inspection segment achieved 7.6% organic growth, supported by strong performance across all business lines, with an adjusted operating profit margin of 14.7%. • The Management & Assurance business delivered 6.2% organic growth, with an adjusted operating profit margin of 20.1%. • The Group launched the "IMPACT NOW for Sustainability" solution—an integrated offering bundling SGS’s full suite of sustainability services, including climate change, circularity, nature conservation, and ESG assurance. • Amid the global rollout of PFAS-related projects, SGS quadrupled its testing capacity in North America—securing a strategic advantage in supporting global PFAS pollution prevention and control efforts. • Brightsight opened new laboratories in Singapore and Spain, further strengthening SGS’s cybersecurity service capabilities. Géraldine Picaud, CEO of SGS Group, stated: "I sincerely thank every member of the SGS family—your agility and dedication have played a vital role in helping the Group fulfill its commitments and successfully advance the 2027 strategy, 'Accelerate Growth, Build Trust.' Our new organizational structure fosters a performance-driven, accountable culture that promotes talent development and team building—critical elements for our people-centric business model. Driven by a fresh mindset, we are accelerating growth, restarting M&A activities, and making notable progress in profitability. Moreover, we generated exceptional free cash flow and strengthened our financial resilience. We believe 2025 will be another great year for SGS. We will build on our momentum and continue executing the 2027 strategy with full commitment. This is only the beginning of our journey." Strategic Business Unit Performance Excellent 2024 Results Industrial & Environment Testing & Inspection The Industrial & Environment business achieved 8.3% organic growth, with an adjusted operating profit margin of 12.7%. • Environmental services maintained double-digit growth, driven by strong PFAS-related demand in North America and Europe. • Safety services achieved double-digit growth, fueled by rising global demand for comprehensive safety solutions. • Project management and consulting services posted high single-digit growth, led by large-scale railway and mining projects in Latin America, and supply chain initiatives across Eastern Europe, the Middle East, and Africa. • Industrial testing continued its strong growth trajectory. Excellent 2024 Results Natural Resources Testing & Inspection The Natural Resources business achieved 7.6% organic growth, with an adjusted operating profit margin of 14.8%. • Mining services saw significant improvement, supported by robust trade activity and double-digit growth in battery metal testing across the Americas.

Testing Firm SGS Posts Higher Q3 Sales, Confirms Outlook

1 day ago

Swiss testing group SGS reported a 14.6% jump in Q3 sales driven by acquisitions and sustainability services, confirming a 5-7% organic growth outlook for 2026.

reuters

2026-10-22

Testing Firm SGS Posts Higher Q3 Sales, Confirms Outlook

Testing Firm SGS Posts Higher Q3 Sales, Confirms Outlook

FAQ