SGS (SGSN) H2 2024 earnings summary

Executive summary

• Achieved record net sales of CHF 6.8 billion in 2024, with 7.5% organic growth and a 2.6% year-over-year increase, alongside strong profitability at the top end of guidance.

• Free cash flow reached a record CHF 748 million, up 24% year-over-year, and leverage improved to 1.8x from 2x.

• Strategy 27 advanced with 14 bolt-on acquisitions, significant investments in sustainability, digital trust, and efficiency programs, with CHF 50 million in savings delivered in 2024.

• Strong performance across all business lines and geographies, with double-digit growth in key segments like sustainability, climate services, and connectivity.

• Eleven acquisitions closed in 2024, adding CHF 83 million in annual sales; M&A pipeline remains strong.

Financial highlights

• Adjusted operating income was CHF 1,040 million (15.3% margin), up 60 basis points from 2023 and a 7.1% increase year-over-year.

• Earnings per share grew 3.3% to CHF 3.10, despite CHF 82 million in restructuring costs.

• Organic sales growth contributed CHF 494 million; reported sales growth was 2.6% due to a 4.8% negative Forex impact.

• Return on invested capital reached 24%, up 2 percentage points year-over-year.

• Net profit attributable to shareholders was CHF 581 million, up from CHF 553 million in 2023.

Outlook and guidance

• 2025 sales growth expected at 5–7%, with bolt-on acquisitions adding 1–2%.

• Profitability projected to improve by at least 30 basis points, including negative Forex effects.

• Guidance aligns with 2027 targets, maintaining flexibility for innovation and organic growth investments.