Bureau Veritas posts 2019 Q1 results

IIOA member Bureau Veritas has posted its 2019 Q1 results.

Revenue rose 6.8% (5.8% constant currency) to 1.175 billion EUR.

Within this, the Certification business declined 1.9% due to absence in Q1 of the key transition activity of leading ISO standards and schemes from the corresponding 2018 figures. Bureau Veritas noted the situation for certification within their commentary:

‘The Certification business recorded negative organic growth of (1.9)% in the first quarter of 2019, against challenging comparables, attributed to the end of the 3-year revision period on QHSE and Transportation standards.

As anticipated, QHSE and Transportation Certification markets declined as a result of the absence of transition man-days. This mainly impacted the countries which are highly dependent on QHSE and Transportation standards, namely Germany, US, Canada and to some extent UK and Spain.

Growth was achieved elsewhere. In particular, Social & Customized audits, Sustainability & CSR and Food Certification delivered double-digit organic growth. High double-digit growth was also recorded in the Enterprise Risk Management offering, including anti-bribery, business continuity, cybersecurity and GDPR Data privacy certification.

By geography, mid-single digit growth was delivered in France and China, both benefiting from their diversified portfolios while the other geographies showed negative growth as a result of the 3-year standards revision period ending.

Outlook: In 2019, the Certification business is expected to deliver slightly negative organic revenue growth. This reflects: (i) the impact of the QHSE and Transportation transition which ended in September 2018 creating challenging comparables for the first nine months of the year; (ii) solid growth elsewhere primarily driven by Food schemes, Sustainability, Training and Customized audits. Profitability wise, the Group will focus on margin protection.’

Full details can be viewed here.

• Bureau Veritas