VIENNA (dpa-AFX) - SGS Group (SGSOY.PK) reported that its first-half profit attributable to equity holders reached 258 million Swiss francs, an increase of 24.6% over the prior year (constant currency basis) and an increase of 20.6% compared with the 214 million francs reported in June 2015 mainly due to the restructuring expenses accounted for in the first-half of 2015. Earnings per share was 33.99 francs compared to 27.98 francs.
Adjusted EBITDA reached 550 million Swiss francs, an increase of 2.6% (constant currency basis) versus prior year. Adjusted operating income increased by 2.3% to 411 million francs versus 401 million francs (constant currency basis) in prior year.
The Group reported revenue growth of 7.0% on a constant currency basis to 2.9 billion Swiss francs, nearly equally split between organic revenue growth of 3.4% and 3.6% contributed by recently acquired companies. On a historical reported basis, Group revenues increased by 5.4%.
The Group said its trading conditions remained challenging due principally to reductions and delays in expenditures by clients in the Energy and Mining industries which impacted our Oil, Gas & Chemicals, Industrial and Minerals businesses.
For 2016, the Group expects to deliver organic revenue growth in the range of 2.5% and 3.5% with an increase in adjusted operating income on a constant currency basis and solid cash flow generation. SGS Group said it remains committed to deliver its 2016-2020 plan: Mid single-digit organic growth on average with an improvement over the period; and an adjusted operating income margin of at least 18% by the end of the period.
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