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Bureau Veritas posts 2017 ‘solid’ full year 2017 results

IIOC member Bureau Veritas publishes its 2017 full year results.

The revenue of EUR 4.689 million was 3.1% up on 2016, which includes organic growth of 2.2%. This was assisted by 3% organic growth in the second half of 2017 and 3.8% organic growth in Q4.

Adjusted operating profit was up 1.4% to EUR 746 million.

Of the six business groups within Bureau Veritas, Certification posted the strongest organic growth at +6.1%.

Details of the Certification business is given as:

‘The Certification business achieved solid organic growth of 6.1% for the full-year 2017 (of which 6.8% in Q4), with growth spread across all regions and categories.

Overall the growth was supported by renewed standards (ISO 9001, 14001, AS 9100 in the Aerospace and IATF in the Automotive sectors), along with new product and service launches. At the end of 2017, more than 50% of Bureau Veritas’ clients have transitioned to the new QHSE Standards (ISO 9001: 2015 and ISO 14001: 2015). The transition effect is expected to continue until the first-half of 2018.

Double-digit growth was achieved for Customized Audits led by Supplier Risk Management, Brand Protection and Client Operations audits, as well as for training activities, also benefiting from the transition to the new standards. Food Certification schemes recorded high single-digit growth, notably fuelled by Certification of Organic food products, while the growth of Supply Chain & Sustainability delivered mid-single digit (led by Energy management and Greenhouse Gases partly offset by a decline of Wood Management Systems Certification).

Global Certification contracts grew by 10% organically, with the ramp-up of new contracts signed with international companies, notably in Automotive, Aerospace, Food and Oil & Gas sectors.

Lastly, new products and services launched were also a major contributor to growth. This includes the Group’s offering addressing Enterprise Risks: cybersecurity, anti-bribery and business continuity; in the field of cybersecurity, Bureau Veritas obtained in Q3 2017 the authorization to deliver Information Safety Certification in China. Also, the Group has developed its own referential for Data Privacy ahead of the implementation of the GDPR (General Data Protection Regulation) in May 2018 within the EU.

By geography, Eastern Europe and Latin America delivered a double-digit growth, high single-digit growth was achieved in Asia while the rest of Europe and Americas recorded a mid-single digit pace.

The adjusted operating margin for the year was stable at a healthy 17.1%. This reflects a strong increase in Latam and a decrease in North America due to significant investment while the other regions remained broadly stable.

Outlook: In 2018, the Certification business is expected to deliver a sustained robust growth with a stronger first-half than second-half due to the revised standards transition deadline in September 2018.’

Full details can be viewed here.

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