WASHINGTON (dpa-AFX) - SGS Group (SGSOY.PK, SGSN.SW), a Swiss inspection, verification, testing, and certification company, reported Friday lower profit in its first half, while adjusted operating income and margin increased with sales growth.
Looking ahead for fiscal 2026, SGS said it continues to expect 5 percent to 7 percent organic sales growth, and 5 percent to 7 percent additional sales from acquisitions, including ATS. Adjusted operating income margin on sales, in reported terms, would be in line or above 16 percent.
Further, the firm said Strategy 27 continues to boost its growth with increasing focus on scalable, high-value platforms across Digital Trust and Sustainability services.
Regarding the reminder of 2027 targets, the firm reconfirmed outlook for organic sales growth of 5 percent to 7 percent annually, and significant improvement of at least 1.5 percentage points in adjusted operating income margin on sales by 2027, versus 2023, in reported terms.
In the first half, profit attributable to equity holders reached 309 million francs, down 1.6 percent from 314 million francs in the prior year period. Earnings per share declined 3.7 percent to 1.58 francs from 1.64 francs last year.
Earnings per share before headquarters disposal were 1.58 francs, compared to 1.38 francs in the previous year.
Adjusted operating income reached 555 million francs, up 9.0 percent from 509 million francs in the prior year, with the adjusted operating income margin improving 20 basis points to 15.1 percent of sales from 14.9 percent a year earlier.
Sales reached 3.683 billion francs in the first half of 2026, up 7.6 percent from 3.422 billion francs in the prior year. The company noted that strong organic growth of 5.6 percent and positive net scope effect of 7.8 percent more than offset the adverse foreign exchange effect of -5.8 percent.
In addition, SGS announced that Malcolm Reid, Head of Europe, will retire on July 31, 2026, after 38 years of service. Rafael Navazo, currently Head of Latin America, will replace him.
Mauricio Rocha, currently Managing Director of Chile, has been appointed Head of Latin America and is joining the Executive Committee.
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