Full Year Financial Results 2016

24/02/17

2016 Full Year Results: resilient performance
Slightly positive organic growth expected in 2017
Mid-term ambition intact, with timing delayed by one-year overall
 

Revenue of €4.55 billion, up 1.4% at constant currency vs. 2015
• Organic growth1 of -0.6%
• Two-thirds of the Group portfolio delivered positive organic revenue
  growth with an improving trend in Q4 (-0.3%)
• One-third declined, primarily impacted by the oil & gas and shipping
  markets, while in Q4 only one-quarter remained in negative organic growth
• Growth initiatives contributed 1.7 points to organic growth
• External growth of 2.0%: nine targeted acquisitions completed
• Negative currency impact of 3.2%

Adjusted operating margin of 16.2%, down 25 basis points organically vs. 2015

• Negative impact from activities in downturn (oil & gas, Marine and GSIT)
• Mitigated by the positive contribution of the operational excellence program

Proactive restructuring with €42.6m charges booked in 2016
Adjusted net profit of €409 million (€0.94/share), up 3.7% at constant currency vs. 2015
Operating cash-flow of €594 million, impacted by one-off items
Net income of €319 million, up 34.2% at constant currency
Proposed dividend of 55 cents per share, up 7.8% vs. 2015

Chief Executive Officer Didier Michaud-Daniel commented:

“In 2016 Bureau Veritas proved to be resilient despite the challenging commodities and shipping market environment. Several of the Group’s portfolio activities had a solid year, notably Consumer Products, IVS, Agri-Food and Certification. The 2016 financial year closed with growth and profitability in line with our latest guidance, with an improving trend in organic growth in the last quarter. In 2016, China became the leading country of Bureau Veritas in terms of Group revenue at 16.0%.

As we progress with the global transformation of the Group, I have tightened the Executive Committee team to make the organization more agile and facilitate the roll-out of our refocused five Growth Initiatives. We strive to significantly increase our commercial development and innovation efforts while continuing proactive restructuring and operational efficiency. In a still uncertain environment, our ambition is intact but we expect the timing of our 5-year plan to be delayed by one year. We now aim at   returning

to a 5-7% organic revenue growth by 2020, adding circa €1.5bn to Group revenue in 2020 compared to 2015 revenue2, achieving an adjusted operating margin above 17% in 2020, and continuously generating a high free cash flow.

In 2017, we anticipate a slightly positive organic growth with an adjusted operating margin at circa 16%, as well as higher cash flow generation compared to 2016”.

Read the full press release here

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