ZURICH (Reuters) – Testing and inspection group SGS said it was aiming for organic growth in the mid-single digit percentage range this year after on Thursday reporting a 4.1% drop in shareholders net profit for 2022.
The Swiss company said shareholders net profit fell to 588 million Swiss francs ($640.94 million), down from 613 million francs a year earlier.
SGS, which made nine acquisitions during 2022, said its revenue increased by 3.7% to 6.6 billion francs from 6.4 billion francs, missing forecasts for 6.72 billion francs in a company gathered consensus of analyst forecasts.
Organic growth, which cuts out the impact of acquisitions and currency moves, came in at 5.8%, missing the company’s guidance for an increase towards the upper end of the mid-single digit percentage range.
Adjusted operating income was flat at 1.02 billion francs, in line with the company’s updated outlook from November when it said it expected a similar level to 2021. Analysts had forecast a figure of 1.03 billion francs.
Chief Executive Frankie Ng said the results showed the company, whose activities include environmental testing and public health, had navigated a “challenging environment.”
Ad: Save every day with Amazon Deals: Check out today's daily deals on Amazon.
For 2023, the company said it was aiming to improve its ajusted operating income and profit margin.
SGS proposed unchanged dividend of 80 francs, the same as a year earlier.
($1 = 0.9174 Swiss francs)
(Reporting by John Revill, editing by Noele Illien)