WASHINGTON (dpa-AFX) - SGS Group (SGSOY.PK), an inspection, verification, testing and certification company, reported Tuesday that its fiscal 2018 profit attributable to equity holders increased 3.5 percent to 643 million Swiss francs from last year's 621 million francs.
Earnings per share were 84.32 francs, higher than 82.27 francs a year ago. The adjusted earnings per share were 95.17 francs.
The company noted that for the first time in group history, the adjusted operating income passed the 1 billion mark to 1.05 billion francs, up 8.4 percent from 969 million francs in the prior year.
The adjusted operating income margin increased to 15.7% from 15.3% in the prior year.
Revenue for the year increased 5.6 percent to 6.71 billion francs from 6.35 billion francs a year ago.
Looking ahead for fiscal 2020, SGS said it expects margins of above 17%. This is based on mid-single-digit organic growth, while maintaining a strong level of cash conversion.
Since the start of the 2020 Plan, SGS has acquired 300 million francs of revenue and the group now expects to accelerate mergers and acquisitions, while remaining disciplined on returns.
SGS expects dividend distributions to remain stable compared to the prior year or to grow in line with the improvement in net earnings.
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