Strong organic revenue growth in the first quarter of 2022; Solid
2022 outlook confirmed
PRESS RELEASE
Neuilly-sur-Seine, France – April 21, 2022
Strong organic revenue
growth in the first quarter of
2022; Solid 2022 outlook
confirmed
Q1 2022 Key
figures1
- Revenue of EUR 1,290.1 million in
the first quarter of 2022, up 11.7% year on year and up 8.0%
organically
- More than half of the portfolio
(including Buildings & Infrastructure and Agri-Food &
Commodities) was up 8.1% organically on average
- A fifth of the portfolio (Industry)
delivered 11.9% organic revenue growth with strong business
activity for the Power & Utilities segment (including
renewables) alongside the recovery of Oil & Gas markets
- Less than a third of the portfolio
(Consumer Products, Certification and Marine & Offshore) grew
at 5.0% organically on average.
- The currency impact was positive by
3.2% mainly due to the appreciation of the USD and pegged
currencies partly offset by the depreciation of some emerging
countries’ currencies against the euro
Q1 2022 Highlights
- Growth driven by the whole
portfolio across all geographies (Americas, Middle East, Europe,
Africa and Asia Pacific)
- Sustained strong momentum for
Sustainability and ESG-related solutions across all businesses
- 58% of group sales related to
Sustainability through the BV Green Line of services and
solutions
- Limited impact from Russia /
Ukraine conflict (c.1% of group revenue all together in FY
2021)
2022 Outlook ConfirmedBased on
a healthy sales pipeline and the significant growth opportunities
related to Sustainability, and assuming there are no severe
lockdowns in its main countries of operation due to Covid-19, for
the full year 2022, Bureau Veritas still expects to:
- Achieve mid-single-digit organic
revenue growth;
- Improve the adjusted operating
margin;
- Generate
sustained strong cash flow, with a cash conversion above 90%.
Didier Michaud-Daniel, Chief Executive Officer,
commented:
“We have got off to a very good start to 2022
with strong organic revenue growth, fueled by good momentum across
all our activities. Demand for our unique worldwide sustainability
offering continues to accelerate and we have a significant backlog:
the BV Green Line of services and solutions is now well on the way
to representing nearly 60% of our sales. More and more clients look
to us for our expertise, impartiality and independence to help them
shape trust around topics at the heart of their ESG challenges and
of society at large: health, safety, quality, environmental
protection and social responsibility. In Q1, our Clarity offering
was fully deployed commercially, thus supporting companies manage
their ESG strategy, track implementation and measure
performance.
Looking ahead, despite the uncertain environment
we are currently facing, we confirm our 2022 outlook.”
-
Q1 2022 KEY REVENUE FIGURES
|
|
|
GROWTH |
IN EUR MILLIONS |
Q1 2022 |
Q1 2021 |
CHANGE |
ORGANIC |
SCOPE |
CURRENCY |
Marine & Offshore |
101.4 |
94.1 |
+7.8% |
+6.5% |
- |
+1.3% |
Agri-Food & Commodities |
280.7 |
249.2 |
+12.6% |
+9.5% |
(0.3)% |
+3.4% |
Industry |
269.5 |
232.5 |
+15.9% |
+11.9% |
+0.2% |
+3.8% |
Buildings & Infrastructure |
388.2 |
347.2 |
+11.8% |
+7.1% |
+1.5% |
+3.2% |
Certification |
97.3 |
91.9 |
+5.9% |
+4.0% |
+0.4% |
+1.5% |
Consumer Products |
153.0 |
139.8 |
+9.4% |
+4.6% |
+0.3% |
+4.5% |
Total Group revenue |
1,290.1 |
1,154.7 |
+11.7% |
+8.0% |
+0.5% |
+3.2% |
Revenue in the first quarter of 2022 amounted to
EUR 1,290.1 million, a 11.7% increase compared with Q1 2021.
Organic growth was 8.0%, compared to a 2.5% increase in the last
quarter of 2021 and benefited from a catch-up effect following the
cyber-attack which occurred in Q4 2021.
Three businesses delivered strong organic
growth, Industry 11.9%, Agri-Food & Commodities 9.5%, and
Buildings & Infrastructure 7.1%. The rest of the portfolio saw
mid-single-digit growth, with Marine & Offshore, up 6.5%
organically, Consumer Products up 4.6% and Certification up
4.0%.
By geography, activities in Americas strongly
outperformed the rest of the Group (26% of revenue; up 17.1%
organically), led by a 10.0% increase in North America (Buildings
& Infrastructure driven) and by a 29.7% increase in Latin
America (led by Brazil notably). The activity in Asia Pacific (29%
of revenue; up 4.5% organically) benefited from robust growth in
China and in Australia as well as strong growth in India. Europe
(36% of revenue; up 3.9% organically) was led by robust performance
in France, strong growth in Italy and the Netherlands. Finally, in
Africa and the Middle East (9% of revenue), business increased by
13.9% on an organic basis, essentially driven by Buildings &
Infrastructure and energy projects in the Middle East.
The scope effect was a positive 0.5%, reflecting
bolt-on acquisitions realized in the past few quarters.
Currency fluctuations had a positive impact of
3.2%, mainly due to the appreciation of the USD and pegged
currencies against the euro, which was partly offset by the
depreciation of some emerging countries’ currencies.
-
LIMITED EXPOSURE TO RUSSIA / UKRAINE CONFLICT
The Group generated c.1% of its Group revenue at
the end of 2021 from Russia and Ukraine all together, mainly
related to commodities markets. In Ukraine (0.3% of Group revenue),
the Group has put its people’s safety at the heart of crisis
management. Since the start of the conflict, the Group has stop
operating while ensuring the payment of its employees’ salaries.In
Russia (0.8% of Group revenue), the Group has reduced its
activities to essential services in quality, health & safety,
environmental protection and social responsibility to domestic and
international companies. Since the beginning of the ongoing
conflict between Russia and Ukraine, Bureau Veritas has been
regularly assessing and monitoring its position in Russia. As of
this date, the Group has downsized its business in Russia in the
sectors where the company was previously operating i.e., Marine,
Aeronautics and Commodities. The Group will keep downsizing its
operations and presence as the situation evolves.
Overall, the Group considers that most of its
activities are not impacted by the current conflict in Ukraine.
At the end of March 2022, the Group's adjusted
net financial debt slightly increased compared with the level at
December 31, 2021. Bureau Veritas had EUR 1.4 billion in available
cash and cash equivalents and EUR 600 million in undrawn committed
credit lines. The Group has a solid financial structure with no
maturities to refinance until June 2023.
-
BUREAU VERITAS IS COMMITTED TO ITS EXTRA-FINANCIAL PERFORMANCE
Corporate Social Responsibility (CSR)
Key indicators
|
UNITED NATIONS’ SDGS |
Q1 2022 |
FY 2021 |
2025 TARGET |
SOCIAL & HUMAN CAPITAL |
|
|
|
|
Total Accident Rate (TAR)2 |
#3 |
0.21 |
0.27 |
0.26 |
Proportion of women in leadership positions3 |
#5 |
25.4% |
26.5% |
35.0% |
Number of training hours per employee (per year)4 |
#8 |
3.6 |
29.9 |
35.0 |
ENVIRONMENT |
|
|
|
|
CO2 emissions per employee (tons per year)5 |
#13 |
2.43 |
2.49 |
2.00 |
GOVERNANCE |
|
|
|
|
Proportion of employees trained to the Code of Ethics |
#16 |
97.7% |
95.8% |
99.0% |
CSR commitment recognized by
non-financial rating agencies
Bureau Veritas supports companies, governments
and public authorities in reducing their risks in terms of health,
quality, safety, environmental protection and social
responsibility. Those challenges are central to societal
aspirations. Being a Business to Business to Society company comes
with a duty: to be exemplary in terms of sustainability internally,
and to be a role model for industry in terms of positive impact on
people and the planet.
The Group’s commitment is to act responsibly in
order to Shape a Better World.
This commitment was again recognized by
non-financial rating agencies during the first quarter of 2022.
This is a testament to Bureau Veritas constant efforts regarding
sustainability.
On February 28, 2022, Bureau Veritas was awarded
Gold Class in the latest Global Sustainability Assessment by
S&P. By being included in this selection, Bureau Veritas is
still recognized among the world’s highest performing sustainable
companies in 2022.
-
HINDA GHARBI APPOINTED CHIEF OPERATING OFFICER OF BUREAU
VERITAS
On February 24, 2022, the Board of Directors of
Bureau Veritas announced the renewal of the term of office of the
Chief Executive Officer, Didier Michaud-Daniel, until the Annual
General Meeting in June 2023, which will be called to approve the
financial statements for the year 2022.
As of May 1st, 2022, Hinda Gharbi will join
Bureau Veritas as Chief Operating Officer and will be a member of
the Executive Committee. The Board of Directors' decision is the
result of a rigorous selection and recruitment process, as part of
succession planning for the Chief Executive Officer, led jointly by
the Nomination & Compensation Committee and Didier
Michaud-Daniel.
On January 1st, 2023, Hinda Gharbi will assume
the position of Deputy CEO of Bureau Veritas. The Board of
Directors will appoint her as Chief Executive Officer at the end of
the 2023 Annual General Meeting.
Hinda Gharbi will join Bureau Veritas from
Schlumberger, a global technology leader in the energy sector,
where she is currently Executive Vice President, Services and
Equipment. In this role, which she has held since July 2020, she
oversees products and services for the Group as well as digital
topics.
Based on a healthy sales pipeline and the
significant growth opportunities related to Sustainability, and
assuming there are no severe lockdowns in its main countries of
operation due to Covid-19, for the full year 2022, Bureau Veritas
still expects to:
- Achieve
mid-single-digit organic revenue growth;
- Improve the
adjusted operating margin;
- Generate sustained
strong cash flow, with a cash conversion6 above 90%.
MARINE & OFFSHORE
IN EUR MILLIONS |
Q1 2022 |
Q1 2021 |
CHANGE |
ORGANIC |
SCOPE |
CURRENCY |
Revenue |
101.4 |
94.1 |
+7.8% |
+6.5% |
- |
1.3% |
The Marine & Offshore business delivered a
strong 6.5% organic revenue increase in the first quarter with the
following trends:
- A high single-digit
increase in New Construction (42% of divisional revenue),
reflecting the improvement in the new orders intake in the prior
year across the board and notably in China;
- A low single-digit
growth in the Core In-service activity (43% of divisional revenue),
a combination of the fleet’s modest growth and some price increase
against challenging comparables. At March end, the fleet classified
by Bureau Veritas comprised of 11,533 ships, representing 140.1
million of Gross Register Tonnage (GRT), up 0.8% year on year
(based on the number of ships);
- Double-digit growth
was recorded for Services (15% of divisional revenue, including
Offshore), which benefited from improving end markets in a context
of high oil prices and favorable comparables. The Group benefited
from the increased demand for risk assessment services related to
the Offshore segment as well as consulting services related to
energy efficiency in a context of high oil prices.
New orders totaled 2.3 million gross tons at the
end of March 2022 (from 2.2 million gross tons in the prior year
period) in a shipping market down in the first quarter. This brings
the order book to 17.1 million gross tons at the end of the
quarter, up 4.9% compared to December 2021 and up 20.3%
year-on-year. It remains highly diversified and composed of LNG
fueled ships, container ships and specialized vessels.
Marine & Offshore continued to focus on
efficiency levers through digitalization and high added-value
services. In Q1, the Group opened its first excellence center in
France to develop new digital solutions such as the use of drones
by surveyors to deliver their inspections.
Sustainability achievements
The Group continued to address the challenges of
sustainability and the energy transition by providing rules and
guidelines for the safety, risk and performance requirements for
innovation in future fuels and propulsion systems. The Group
supported its customers in complying with environmental
regulations, implementing sustainable solutions on board, and
measuring progress in decarbonization.
In the first quarter of 2022, Bureau Veritas
delivered an Approval in Principle (AiP) to GTT, a technological
expert in membrane containment systems, Alwena Shipping, a naval
consultancy and engineering firm, and COSCO Shipping Heavy Industry
for a new concept, combining LNG retrofit and jumboization, applied
to large container ships. LNG propulsion offers ship-owners a
solution to comply with the environmental regulations being adopted
by the IMO by 2045.
The Group has also upgraded its online platform,
VeriSTAR Green, to enable all shipowners to assess their compliance
with new International Maritime Organization (IMO) carbon intensity
regulations ahead of the 2023 deadline as well as the 2015 EU MRV
regulation on the Monitoring, Reporting and Verification of carbon
dioxide emissions from maritime.
AGRI-FOOD & COMMODITIES
IN EUR MILLIONS |
Q1 2022 |
Q1 2021 |
CHANGE |
ORGANIC |
SCOPE |
CURRENCY |
Revenue |
280.7 |
249.2 |
+12.6% |
+9.5% |
(0.3)% |
+3.4% |
The Agri-Food & Commodities business
delivered a strong organic revenue growth of 9.5% in the first
quarter of 2022, led notably by buoyant Metal & Minerals and
improving Oil & Petrochemicals markets.
The Oil & Petrochemicals
segment (O&P, 31% of divisional revenue) delivered
mid-single-digit organic growth overall. The O&P Trade market
improved on the combination of price increases and higher fuel
consumption from low levels, with notably increased demand for
aviation fuel/gasoline. Strong growth was achieved in the Middle
East and Africa alongside robust growth in both Americas and Asia
Pacific. Europe started to be affected by the Russia /Ukraine
conflict which has triggered changes in the routes for trade. The
Group continued to reposition its portfolio towards new services
(such as laboratory outsourcing) and value-added segments related
to sustainability-driven solutions, such as Oil Condition
Monitoring (OCM), Carbon 14 analysis for Biofuels, or fuel marking
program (in Africa). Strong activity was delivered for marine fuel
and Verifuel bunker quantity services.
The Metals & Minerals
segment (M&M, 33% of divisional revenue) recorded double-digit
organic growth overall, across the entire value chain. The Upstream
business (two-thirds of M&M) continued to record strong growth
(up 16.2% organically), led by most geographies, and particularly
the Americas (Canada, the US, Chile and Peru) and Asia Pacific
regions (fueled by Australia). The business was supported by a
strong backlog and sustained high level of exploration drilling
activity in a context of buoyant metals and minerals prices. Trade
activities recorded double digit organic revenue (up 12.4%
organically, fueled by all the main metals (copper, lead, zinc,
coal and precious metals), with strong trade volumes in Asia
(notably China), Latin America and Southern Africa. The demand
continues to be driven by the mega-trends of urbanization,
electrification/energy transition which outweigh the disruptions
with the Russia/Ukraine conflict and supply chain issues impacting
the major industrial economies.
Agri-Food (22% of divisional
revenue) achieved low single digit organic revenue growth in the
first quarter, with better performance for Agricultural products
than for Food. The agricultural inspection activities grew
strongly, led by Latin America; they benefited in Brazil from very
early harvest campaign for soybeans and corn. The Agri Upstream
business recorded robust growth led by Brazil operations throughout
all agri-commodities and thanks to the expansion of services (such
as the transgenic soybean harvest control). In Europe, the business
started to be impacted by the Russia/Ukraine conflict with Black
Sea exports likely to be reduced moving forward. The Food business
saw better resilience of the inspection activities over testing; it
reflected a mixed situation by geography: strong growth in Middle
East and Africa, solid growth in the US (partially driven by ramp
up in new greenfield lab activities) while weak growth in Canada
and in Asia Pacific, which were both impacted by a slow restart
following the cyber-attack in Q4 2021. In Australia, the activity
was hampered by the Covid-19 situation and the associated lockdown
measures that have affected the main locations of the Group’s
operations.
Government services (14% of
divisional revenue) demonstrated a double-digit organic revenue
growth in the quarter, thanks to both Europe and Africa. Strong
growth was delivered in African countries led by the strong
development of VOC (Verification of Conformity) in Democratic
Republic of the Congo (DRC), Ghana, Zimbabwe, Tanzania, and Single
Window (Indonesia) contracts. This segment also benefited from the
increased value of inspected goods on existing contracts (in DRC
essentially), supported by high commodities prices. The percentage
of inspections performed remotely was maintained at a high level in
the quarter and for VOC contracts in Africa notably.
Sustainability achievements
The Group continues to work on several
opportunities for clients to reach their sustainable development
goals. In the first quarter of 2022, the Group has signed a
worldwide Oil Condition Monitoring (OCM) contract with a Swedish
car maker to test the engines oil and verify the wear for which the
client warranty is conditioned to testing. Bureau Veritas also
supported the first ever Sustainable Aviation Fuel Filtration
project for a major player, which they successfully managed to
return off spec jet fuel to fully On-Spec product. In Singapore,
the Group has made new investments in its laboratory to be able to
serve Sustainable Aviation Fuel (SAF) operators in the Region. As a
major Oil & Petrochemicals hub, Singapore has the ambition to
be at the forefront in Asia for sustainability. At the same time,
the Group will open new labs (Agri in Indonesia) that will help
serve the agri/biofuels chains.
INDUSTRY
IN EUR MILLIONS |
Q1 2022 |
Q1 2021 |
CHANGE |
ORGANIC |
SCOPE |
CURRENCY |
Revenue |
269.5 |
232.5 |
+15.9% |
+11.9% |
+0.2% |
+3.8% |
Industry was the best performing business within
the Group’s portfolio in the first quarter of 2022 with an organic
growth of 11.9%, led by all segments across the board.
By geography, most regions delivered strong
growth in the quarter with Latin America and Middle East leading
the way alongside North America (driven by both Canada and the US)
and Asia Pacific. In Europe, the growth was however more
moderate.
By market, Power & Utilities (14% of
divisional revenue) remained a growth driver of the portfolio with
a high-single-digit organic performance achieved in the first
quarter. In Latin America (Chile and Colombia notably), the
activity benefited from a combination of ramp-up of contract wins
with various Power Distribution clients, volume increases on
existing contracts and price renegotiation. In Europe, growth was
primarily fueled by France (with increased activity for nuclear
power plants, including the EPR project at Flamanville 3) and Spain
(power generation).
In the medium to long term, the Group continues
to see significant opportunities in renewable power generation
(solar, wind, hydrogen) but also for power grids, as well as
e-mobility and Power-to-X technologies to build a low-carbon
transport sector. Several contracts have been awarded during the
quarter and the sales pipeline is significant; it includes Oil
& Gas actors that are engaging their transition to low-carbon
strategy by reducing emissions and changing the energy mix. For the
first time, the Group’s renewable energy services are larger than
the Oil & Gas capex projects.
In Oil & Gas (33% of divisional revenue),
the activity strongly improved, with double digit organic growth
recorded across most geographies. After a particularly weak level
of capex in the first quarter last year, the Group benefited from
the restart of many projects triggered by rising oil prices.
Opex-related activities (representing two-thirds of the Oil &
Gas business) grew double-digit organically as activity levels
resumed since lockdown restrictions have been lifted. Growth was
led notably by Latin America (Brazil and Argentina in particular
thanks to numerous contracts wins), Middle East, Europe (Spain) and
Africa. Capex-related activities, including Procurement Services,
grew low double-digit organically, essentially attributable to the
US (with drilling activity resuming), Asia and the Middle East. In
the quarter, the sales pipeline in Capex services further improved,
notably in Asia and in North America. As of today, the share of Oil
& Gas Capex in Group revenue totaled 2%.
Sustainability achievements
In the first quarter of 2022, the Group has been
awarded a contract to provide Construction Management Services to a
facility in the US (Virginia) for a 51 Mega Watt solar project.
The Group has also strengthened its commitment
to the hydrogen economy and is now supporting the AquaVentus
Association with its long-standing expertise in wind energy,
sustainability and marine & offshore. The AquaVentus
association is pursuing a visionary project: up to 1 million metric
tons of green hydrogen are to be produced in the North Sea from
2035. The project family around the AquaVentus initiative includes
numerous projects along the value chain - from the production of
hydrogen in the North Sea to its transport to customers on the
mainland.
BUILDINGS & INFRASTRUCTURE
IN EUR MILLIONS |
Q1 2022 |
Q1 2021 |
CHANGE |
ORGANIC |
SCOPE |
CURRENCY |
Revenue |
388.2 |
347.2 |
+11.8% |
+7.1% |
+1.5% |
+3.2% |
The Buildings & Infrastructure (B&I)
business posted a strong organic revenue growth of 7.1% in the
first quarter of 2022, mostly driven by the Americas (both the US
and Latin America led) as well as by the Middle East and
Africa.
Double-digit organic revenue growth was
delivered in Construction-related activities (52% of divisional
revenue), while Buildings In-service activities (48% of divisional
revenue) achieved low single-digit growth.
The Group delivered a major organic growth
increase in the Americas (23% of divisional revenue) fueled by most
countries. Bureau Veritas US operations recorded 12.8% organic
revenue growth thanks to a stellar performance in the data center
commissioning services business, where the Group has a leading
expertise and a strong commercial development in project management
assistance and transactional activity for Opex-related services.
The Electric Vehicle Charging Stations (EVCS) market also
contributed to the growth in the US and the sales pipeline remains
on the upwards trend. In Latin America, the activity remained very
strong with the recovery of Brazil leading the way (fueled by the
ramp-up of a large contract for industrial facilities renovation
and strong sales development overall pipeline) alongside both
Argentina and Colombia which contributed to the growth as well.
Growth in Europe (54% of divisional revenue) was
robust overall. The Group achieved double-digit organic revenue
growth in Italy (led by the ramp-up of large contract wins on the
motorway network) and in the Netherlands (opex led) while a low
single-digit growth was delivered elsewhere, apart from East
European countries. In its largest market, France, organic growth
was 3.1% in the quarter. The business was primarily driven by the
In-service activity (around three quarters of the French business)
with the delivery of a solid backlog and the strong performance of
Bureau Veritas Solutions (technical assistance; consulting
services) led by the increase of headcount. Energy efficiency
programs remained a key growth contributor. The growth for
capex-related works remained subdued in a declining new build
market. From H2 onwards, the Group expects to benefit from the
numerous investment programs in the EU (including the Green Deal
and the upcoming 2024 Olympic Games in France) aimed at supporting
the development of a greener economy.
The Asia Pacific region (20% of divisional
revenue) recorded a slight organic revenue increase with a
contrasted situation by country. In China, the business was stable
in the quarter with a declining activity in March offsetting a good
start to the year following the new regional shutdowns (Shenzhen
followed by Shanghai). Consequently, many construction sites are
closed which delays the revenue booking until the projects resume.
Elsewhere, the activity strongly recovered in India (up 12%
organically) as lockdown measures were removed, while Japan
continued to improve (up 7.6% organically) led by Opex
services.
Lastly, in the Middle East & Africa region
(3% of divisional revenue), the Group continued to deliver a very
strong growth primarily led by Saudi Arabia, and by the United Arab
Emirates (UAE) benefiting from the development of numerous projects
supported by the rebound in oil prices. In Saudi Arabia, the Group
is engaged in the NEOM project, a smart city that will be powered
by renewable energy and become a center for biotechnology, media
and entertainment. Bureau Veritas is delivering QA/QC Services for
the project across a wide scope of services (support of the Quality
Compliance function, establishment of the wide Quality Management
System, Vendor and Supply Chain Quality).
Sustainability
achievementsDuring the first quarter of 2022, the Group
was awarded a 2-year extension to the existing contract provisions
for the UK Environment Agency related to air quality compliance
monitoring, providing further insight into the achievements of the
UK Government’s emissions reductions programme, providing services
for the public good. In the US, the Group has signed a forestry
contract to audit utility companies in California, helping to
reduce likelihood of forest fires.
CERTIFICATION
IN EUR MILLIONS |
Q1 2022 |
Q1 2021 |
CHANGE |
ORGANIC |
SCOPE |
CURRENCY |
Revenue |
97.3 |
91.9 |
+5.9% |
+4.0% |
+0.4% |
+1.5% |
The Certification business achieved a solid
organic growth of 4.0% in the first quarter of 2022, against
challenging comparables following the catch-up in Q1 2021 of
postponed audits in 2020 during the lockdown period and against a
year of recertification for several schemes related to QHSE and
Transportation. This was supported by strong sales development,
notably as regards Sustainability and price increases.
Most geographies delivered organic growth. The
Americas, Africa and the Middle East performed above the divisional
average, fueled notably by stellar growth in Latin America (and
Brazil in particular). Europe and Asia grew below the average led
by the UK and by Thailand and India respectively.
In the meantime, Certification activities
declined in the countries which faced tough comparables against
last year (primarily Germany, Canada, Japan) as they are more
exposed to sectors that benefited from the effect related to a year
of recertification in 2021 (which implied an increase of the man
days).
Within the Group’s portfolio, strong growth was
achieved in Corporate Responsibility & Sustainability, Organic
Food products certification as well as for Training & Personnel
services; conversely, the activity slightly declined for QHSE and
Transportation due to tough comparables against the prior year
(linked to the year of recertification).
During the first quarter, the growth of Bureau
Veritas’ Sustainability services continued to maintain a solid
momentum led by the search for more data transparency, ESG
reporting and new regulations. They help companies verify their
energy efficiency, carbon and environmental footprint, Greenhouse
gas emissions, social responsibility commitments and sustainability
reports. Bureau Veritas Corporate Responsibility and Sustainability
Certification services grew by 8.5%, led by a strong performance
for Greenhouse gas emissions verification services related to
Carbon footprint assessments, Offsetting & removals projects
and Neutrality or net zero goals.
In Q1 2022, the group started the full
commercial deployment of its new offering Clarity that was launched
in December 2021. With Clarity, the Group supports companies in
managing their ESG strategy, measuring their performance and
tracking their implementation. After a few weeks of engagement, the
commercial pipeline already shows a very positive dynamic, notably
in Europe and in Asia. New Clarity contracts have been secured, one
of them for a leading player of the Food & Beverage industry,
looking at ensuring closer and more reliable monitoring of its
Sustainability strategy.
In addition, the Group’s portfolio
diversification continued with a very strong organic performance
and increased momentum on solutions dedicated to companies around
Anti-bribery, Asset Management, IT Service Management Information
Security, and Business Continuity. In particular, the cybersecurity
offering posted a 39.8% organic revenue growth in the quarter,
backed by a strong commercial development in a context of rising
demand for more transparency and control on IT and security
systems.
Sustainability achievements
During the first quarter of 2022, Bureau Veritas
continued the implementation of its first iconic Clarity contract
with a global leading hospitality player. The Group’s auditors have
performed dozens of social, health and safety assessments in Q1
2022, across various countries. All the results of these audits are
visible in a best-in-class digital platform, through different
scores and KPIs calculated based on Bureau Veritas’ risk
algorithm.
CONSUMER PRODUCTS
IN EUR MILLIONS |
Q1 2022 |
Q1 2021 |
CHANGE |
ORGANIC |
SCOPE |
CURRENCY |
Revenue |
153.0 |
139.8 |
+9.4% |
+4.6% |
+0.3% |
+4.5% |
The Consumer Products business delivered an
organic revenue growth of 4.6% in the first quarter of 2022, across
most product categories.
By geography, very high growth was achieved in
South America and in the Middle East & Africa (led by Turkey)
alongside South Asia and South East Asia which grew double digit
(including Bangladesh, India and Sri Lanka). Europe grew above the
divisional average fueled by Italy and Spain. Conversely activity
levels remained muted in North America as well as in Eastern and
South-Eastern Asia (facing new lockdown measures and logistics
issues).
Softlines (36% of divisional
revenue) performed better than the divisional average, with
contrasted situations by region due to continuing Covid-19 impacts
at various level of intensity. Growth was fueled by a strong
momentum in South East Asia (Cambodia, Bangladesh, India and Sri
Lanka essentially), which continued to benefit from a structural
sourcing shift out of China. Turkey (up double digit organically)
also strongly benefited from nearshoring patterns from European
retailers and saw a sharp increase of testing volumes. This
supports the Group’s geographic diversification strategy towards
new countries of production that are closer to the countries of
consumption. Conversely, China has started to be impacted by the
disruption caused by the regional Covid-19 shutdowns and the
difficulty to operate laboratory testing services in normal
conditions, while Vietnam is weakened by labour and container
shortage, in relation to the US market.
Hardlines (28% of divisional
revenue) performed slightly below the divisional average led by
home appliances and do-it-yourself products. Toys rebounded driven
by China. The growth of luxury products outperformed, still driven
by Italy. Inspection and Audit services grew in contrasted manner
depending on geographies, with many countries in Asia (China,
Vietnam, Thailand, Japan notably), being disrupted by Covid-19
related lockdown measures and shipping shortage issues. Elsewhere
the demand for Social & CSR audits remained strong.
Lastly,
Technology7 (36% of divisional
revenue) performed better than the divisional average, with
double-digit organic performance in Electrical & Electronics
led by both North America, Latin America (including Guatemala,
Mexico and Brazil) and Asia. Wireless Testing (wireless
technologies/Internet of Things (IoT) products) grew low
single-digit, fueled by Asia (Taiwan, China). 5G-related
products/infrastructure maintained a very good momentum in the
quarter with the Group’s test platforms (Taiwan, South Korea and
China in particular) running at full capacity, being complemented
by new testing equipment to meet to the strong demand.
The Group continued to accelerate its
development in the domestic Chinese market alongside its focus on
online clients. This is illustrated by the signing of a contract
with an emblematic Chinese social network company to help it in its
diversification into online shopping through tailor made solutions:
mystery shopping across many countries, suppliers’ audit and
inspection and group general merchandise testing.
Since March 2022, Bureau Veritas is paying close
attention to the issue of regional Covid-19 shutdowns in China,
which if prolonged could have an impact on its activity.
Sustainability achievements
In the first quarter of 2022, Bureau Veritas has
continued to support its clients in delivering more sustainable
products (through compliance, environmental and safety testing, eco
design, durability…) and ensuring more transparency throughout
their entire supply chain (through social audits, factory
improvement programs, integrity enhancement programs, etc..). The
Group has expanded its partnership with Boohoo to help the UK
online retailer through its Clarity offering to continue improving
its ratings as regards product safety, corruption, anti-competitive
behavior and lobbying practices. The Group has also been awarded a
contract with a large European sportswear company to perform energy
audits of its suppliers across many geographies; through these
services, Bureau Veritas supports its clients in managing their ESG
strategy and to bring the proof of their commitments.
-
PRESENTATION
- Q1 2022 revenue
will be presented on Thursday, April 21, 2022, at 6:00 p.m. (Paris
time)
- A video conference
will be webcast live. Please connect to: Link to video
conference
- The presentation
slides will be available on: https://group.bureauveritas.com
- All supporting
documents will be available on the website
- Live dial-in
numbers:
- France: +33 (0)1 70
37 71 66
- UK: +44 (0)33 0551
0200
- US: +1 212 999
6659
- International: +44
(0)33 0551 0200
- Password: Bureau
Veritas
-
2022 FINANCIAL CALENDAR
- Shareholder’s
Meeting: June 24, 2022
- H1 2022 Results:
July 28, 2022
- Q3 2022 revenue:
October 26, 2022
About Bureau Veritas Bureau
Veritas is a world leader in laboratory testing, inspection and
certification services. Created in 1828, the Group has close to
80,000 employees located in nearly 1,600 offices and laboratories
around the globe. Bureau Veritas helps its 400,000 clients improve
their performance by offering services and innovative solutions in
order to ensure that their assets, products, infrastructure and
processes meet standards and regulations in terms of quality,
health and safety, environmental protection and social
responsibility.Bureau Veritas is listed on Euronext Paris and
belongs to the CAC 40 ESG, CAC Next 20 and SBF 120
indices.Compartment A, ISIN code FR 0006174348, stock symbol:
BVI.For more information, visit www.bureauveritas.com, and follow
us on Twitter (@bureauveritas) and LinkedIn.
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Our information is certified with blockchain technology.Check that
this press release is genuine at www.wiztrust.com. |
ANALYST/INVESTOR CONTACTS |
|
MEDIA CONTACTS |
|
|
Laurent Brunelle |
|
Caroline Ponsi
Khider |
|
|
+33 (0)1 55 24 76 09 |
|
+33 (0)7 52 60 89 78 |
|
|
laurent.brunelle@bureauveritas.com |
|
caroline.ponsi-khider@bureauveritas.com |
|
|
|
|
|
|
|
Etienne Linquier |
|
Primatice |
|
|
etienne.linquier@bureauveritas.com |
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|
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thomasdeclimens@primatice.comarmandrigaudy@primatice.com |
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This press release (including the appendices)
contains forward-looking statements, which are based on current
plans and forecasts of Bureau Veritas’ management. Such
forward-looking statements are by their nature subject to a number
of important risk and uncertainty factors such as those described
in the Universal Registration Document (“Document d’enregistrement
universel”) filed by Bureau Veritas with the French Financial
Markets Authority (“AMF”) that could cause actual results to differ
from the plans, objectives and expectations expressed in such
forward-looking statements. These forward-looking statements speak
only as of the date on which they are made, and Bureau Veritas
undertakes no obligation to update or revise any of them, whether
as a result of new information, future events or otherwise,
according to applicable regulations.
-
APPENDIX 1: Q1 2022 REVENUE BY BUSINESS
IN EUR MILLIONS |
Q1 2022 |
Q1 2021 |
CHANGE |
ORGANIC |
SCOPE |
CURRENCY |
Marine & Offshore |
101.4 |
94.1 |
+7.8% |
+6.5% |
- |
+1.3% |
Agri-Food & Commodities |
280.7 |
249.2 |
+12.6% |
+9.5% |
(0.3)% |
+3.4% |
Industry |
269.5 |
232.5 |
+15.9% |
+11.9% |
+0.2% |
+3.8% |
Buildings & Infrastructure |
388.2 |
347.2 |
+11.8% |
+7.1% |
+1.5% |
+3.2% |
Certification |
97.3 |
91.9 |
+5.9% |
+4.0% |
+0.4% |
+1.5% |
Consumer Products |
153.0 |
139.8 |
+9.4% |
+4.6% |
+0.3% |
+4.5% |
Total Group revenue |
1,290.1 |
1,154.7 |
+11.7% |
+8.0% |
+0.5% |
+3.2% |
-
APPENDIX 2: DEFINITION OF ALTERNATIVE PERFORMANCE INDICATORS AND
RECONCILIATION WITH IFRS
The management process used by Bureau Veritas is
based on a series of alternative performance indicators, as
presented below. These indicators were defined for the purposes of
preparing the Group’s budgets and internal and external reporting.
Bureau Veritas considers that these indicators provide additional
useful information to financial statement users, enabling them to
better understand the Group’s performance, especially its operating
performance. Some of these indicators represent benchmarks in the
testing, inspection and certification (“TIC”) business and are
commonly used and tracked by the financial community. These
alternative performance indicators should be seen as a complement
to IFRS-compliant indicators and the resulting changes.
GROWTH
Total revenue growth
The total revenue growth percentage measures
changes in consolidated revenue between the previous year and the
current year. Total revenue growth has three components:
- organic
growth;
- impact of changes
in the scope of consolidation (scope effect);
- impact of changes
in exchange rates (currency effect).
Organic growth
The Group internally monitors and publishes
“organic” revenue growth, which it considers to be more
representative of the Group’s operating performance in each of its
business sectors.
The main measure used to manage and track
consolidated revenue growth is like-for-like, or organic growth.
Determining organic growth enables the Group to monitor trends in
its business excluding the impact of currency fluctuations, which
are outside of Bureau Veritas’ control, as well as scope effects,
which concern new businesses or businesses that no longer form part
of the business portfolio. Organic growth is used to monitor the
Group’s performance internally.
Bureau Veritas considers that organic growth
provides management and investors with a more comprehensive
understanding of its underlying operating performance and current
business trends, excluding the impact of acquisitions, divestments
(outright divestments as well as the unplanned suspension of
operations – in the event of international sanctions, for example)
and changes in exchange rates for businesses exposed to foreign
exchange volatility, which can mask underlying trends.
The Group also considers that separately
presenting organic revenue generated by its businesses provides
management and investors with useful information on trends in its
industrial businesses, and enables a more direct comparison with
other companies in its industry.
Organic revenue growth represents the percentage
of revenue growth, presented at Group level and for each business,
based on constant scope of consolidation and exchange rates over
comparable periods:
- constant scope of
consolidation: data are restated for the impact of changes in the
scope of consolidation over a 12-month period;
- constant exchange
rates: data for the current year are restated using exchange rates
for the previous year.
Scope effect
To establish a meaningful comparison between
reporting periods, the impact of changes in the scope of
consolidation is determined:
- for acquisitions
carried out in the current year: by deducting from revenue for the
current year revenue generated by the acquired businesses in the
current year;
- for acquisitions
carried out in the previous year: by deducting from revenue for the
current year revenue generated by the acquired businesses in the
months in the previous year in which they were not
consolidated;
- for disposals and
divestments carried out in the current year: by deducting from
revenue for the previous year revenue generated by the disposed and
divested businesses in the previous year in the months of the
current year in which they were not part of the Group;
- for disposals and
divestments carried out in the previous year: by deducting from
revenue for the previous year revenue generated by the disposed and
divested businesses in the previous year prior to their
disposal/divestment.
Currency effect
The currency effect is calculated by translating
revenue for the current year at the exchange rates for the previous
year.
1 Alternative performance indicators are
presented, defined and reconciled with IFRS in appendix 2 of this
press release.
2 TAR: Total Accident Rate (number of accidents
with and without lost time x 200,000/number of hours worked).
3 Proportion of women in leadership positions
(number of women on a full-time equivalent basis in a leadership
position/total number of full-time equivalents in leadership
positions).
4 Indicator calculated over a 3-month period
compared to a 12-month period for FY 2021 and 2025 target
values.
5
Greenhouse gas
emissions from offices and laboratories, tons of CO2 equivalent per
employee and per year for Scopes 1, 2 and 3 (emissions related to
business travel). Indicator calculated over a 12-month rolling
period.
6 Net cash generated from operating
activities/Adjusted Operating Profit.
7 Technology segment comprises Electrical &
Electronics, Wireless testing activities and Automotive
connectivity testing activities.
- 2022 04 21_Press Release Q1 2022 Revenue
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