SGS Group, a Swiss leading testing, inspection and certification company, has recorded a total revenue of CHF 6.4 billion in fiscal 2021, up by 14.3 per cent, driven by the ongoing recovery from the COVID-19 pandemic as well as strategic focus and significant contribution from acquired revenue. Organic revenue increased by 8.9 per cent for fiscal 2021.
“We have made significant progress on our new strategic plan, which was implemented at the start of the year. At the same time, our colleagues continue to deal with COVID-related challenges and sometimes tragedies in their personal lives. Their dedication and dynamism through this challenging period remain the basis of our success,” Frankie Ng, CEO of SGS, said.
Operating income increased from CHF 795 million in the prior year to CHF 977 million in 2021 due to the revenue increase and related productivity improvement. No goodwill impairment was recognised in 2021. In 2020, the high restructuring costs were partly offset by a gain on business disposal.
“Our strong 2021 performance has confirmed our strategic focus. Combined with the investment in our platform we are building a thriving future for SGS. We will continue to evolve into a more sustainable, digital and data-driven company to support our commitment to enable a better, safer and more interconnected world for all our stakeholders,” said Frankie.
In 2021, adjusted operating income increased from CHF 900 million in prior year to CHF 1,055 million in 2021, an increase of 17.2 per cent (16.8 per cent at constant currency). The adjusted operating income margin increased from 16.1 per cent in prior year (also 16.1 per cent at constant currency) to 16.5 per cent in 2021, supported by additional productivity increase.
Cash flow from operating activities was CHF 1,169 million in 2021, comparable with prior year. Higher profit was offset by a higher net working capital requirement to support the recovery of activity in 2021. Operating net working capital remained negative as a percentage of revenue at (2.4) per cent compared to (2.5) per cent in prior year.
