In This Article:
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Revenue: EUR3.4 billion, up 6.6% at constant currency and 1.9% at actual rates.
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Operating Profit: EUR590 million, up 13% at constant rates.
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Operating Margin: 17.4%, up 100 basis points at constant currency.
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Earnings Per Share (EPS): 240.6p, growth of 15.2% at constant rates.
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Return on Invested Capital (ROIC): 22.4%, up 250 basis points.
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Adjusted Cash Flow: EUR789 million, a record high.
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Free Cash Flow: EUR409 million, up 8% year on year.
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Net Debt: EUR500 million, reduced by EUR111 million from 2023.
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Net Debt-to-EBITDA Ratio: 0.7 times.
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Dividend: 156.5p, up 40.1% year on year.
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Consumer Product Revenue: EUR959 million, up 7.6% year on year.
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Corporate Assurance Revenue: EUR496 million, up 8.6% year on year.
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Health and Safety Revenue: EUR337 million, up 9% year on year.
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Industry and Infrastructure Revenue: EUR844 million, up 2.4% year on year.
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World of Energy Revenue: EUR75 million, up 8% year on year.
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Share Buyback Program: Announced initial EUR350 million.
Release Date: March 04, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Intertek Group PLC (IKTSF) delivered a strong financial performance in 2024, with earnings slightly ahead of market expectations.
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The company achieved a fourth consecutive year of mid-single-digit like-for-like revenue growth, with a 6.3% increase at constant currency.
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Operating profit increased by 13% at constant currency, and the operating margin improved by 100 basis points to 17.4%.
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Intertek Group PLC (IKTSF) reported a record adjusted cash flow of EUR789 million, with a cash conversion rate of 121%.
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The company announced a EUR350 million share buyback program and raised its medium-term margin targets to 18.5%-plus.
Negative Points
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Sterling's strength compared to major currencies negatively impacted revenue growth by 470 basis points.
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The Industry and Infrastructure division experienced a low-single-digit like-for-like revenue growth, partly due to the exit of non-profitable contracts.
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Operating profit in the Industry and Infrastructure division decreased by 2%, with a margin decline of 40 basis points.
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The company faces challenges from cost inflation, which partially offset positive margin drivers.
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There is ongoing uncertainty regarding global trade dynamics, including tariffs and geopolitical tensions, which could impact future performance.
Q & A Highlights
Q: Can you explain the factors behind the strong growth in Consumer Products, particularly in November and December, and the outlook for this division? A: Andre Lacroix, CEO: The growth was driven by a strong rebound in Global Trade Services (GTS), double-digit growth in softlines, and high single-digit growth in hardlines. This was partly due to a low base in 2023 when retailers reduced activities. We are gaining market share, but it's difficult to measure precisely. We don't see any signs of client activity slowing due to tariff uncertainties.