SGS SA (SGSOF) Q1 2025 Earnings Call Transcript

2025-04-24 16:49:04 ET

SGS SA (SGSOF)

Q1 2025 Results Conference Call

April 24, 2025 04:00 AM ET

Company Participants

Ariel Bauer - Head, Investor Relations, Communications & Sustainability

Geraldine Picaud - Chief Executive Officer

Marta Vlatchkova - Chief Financial Officer

Conference Call Participants

Daniel Burki - Zürcher Kantonalbank

Sylvia Barker - JPMorgan

Annelies Judith Vermeulen - Morgan Stanley

Rory McKenzie - UBS

Remo Rosenau - Helvetische Bank

Neil Tyler - Redburn Atlantic

Suhasini Varanasi - Goldman Sachs

Arnaud Palliez - CIC

Arthur Truslove - Citi

Presentation

Ariel Bauer

Good morning, and welcome to the SGS Q1 2025 sales update. My name is Ariel Bauer, and I'm in charge of Communications and Investor Relations. I'm here with Geraldine Picaud, our CEO; and Marta Vlatchkova, our CFO. Please note that this call is being recorded and will be available for replay on the SGS website. [Operator Instructions].

I would now like to turn the conference over to Gerald Picaud, CEO of SGS.

Geraldine Picaud

Thank you, Ariel, and good morning, ladies and gentlemen. Welcome to this conference call about our Q1 sales. So we had a strong quarter to start the year. In particular, I am very excited about it. We reported the highest quarterly sales ever close to CHF 1.7 billion, up 6.6%. This achievement is attributable to a strong organic growth of 5.6% in but also to our bolt-on acquisition policy, which now significantly contribute to total growth.

In a few minutes, I will comment in detail on the drivers which have supported the market over the quarter. You will see that digital trust and sustainability have been instrumental here confirming that we definitely made the right choice when we put them at the heart of our strategy. Looking at the months ahead, we recognize that we have entered into a period of economic uncertainty, which is already impacting the ForEx. Nonetheless, based on what we have seen, we confirm our guidance as communicated in February, and I will comment further at the end of this presentation. So let's look at sustainability.

The sustainability services have made a strong contribution to growth with major contracts signed across the 4 pillars of IMPACT NOW, climate, circularity, nature and ESG assurance. For example, we see increased demand for sustainability coming from the textile industry. Blue Sign, as an example, it's an SGS company, has been pioneering sustainability in textiles since 2000 and was one of the first companies in the world to implement comprehensive phaseout programs targeting forever chemicals, including PFAS....

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