(BFM Bourse) – With little exposure to the Russian-Ukrainian conflict, the French inspection and certification services giant saw its organic growth accelerate in the first quarter of 2022, supported by demand for solutions related to sustainability and ESG as well as the strength of the energy sector in a context of high oil prices.
A more than reassuring quarter. The Bureau Veritas share, which had not had a good start to the year (underperforming the CAC 40 with a cumulative decline of 11.6%), rebounded significantly on Friday morning in the wake of the group’s business update for the first quarter, revealing an acceleration of organic growth beyond expectations. Around 10:30 a.m., the price of the French certification giant regained 4.69% to 27.01 euros, equivalent to a capitalization of 12.2 billion euros.
During the first three months of 2022, Bureau Veritas’ revenue amounted to 1.290 billion euros, up 11.7% on a reported basis, i.e. organic growth estimated at +8%, compared to +6.6% in the first quarter of 2021. The group certainly acknowledges having benefited over the period from a catch-up effect following the cyberattack which had slowed down growth at the end of 2021.
The scope effect was minimal (+0.5%), while changes in exchange rates mainly due to the appreciation of the dollar (partially offset by the decline in certain emerging currencies) had a net positive impact of 3.2%.
The entire business portfolio and the main regions (Americas, Middle East, Europe, Africa and Asia-Pacific) recorded growth in this quarter. The Industry division, representing a fifth of the portfolio, proved to be the most dynamic, with organic growth of 119% thanks to strong activity in the “Power & Utilities” sector and the recovery of the oil and gas markets. Bureau Veritas also points out that a majority of its sales (58%) are linked to sustainability through the Ligne Verte BV, a center of services and solutions enabling private and public organizations to measure, implement and achieve their sustainable development goals.
“We got off to a very good start in 2022 with strong organic growth, supported by good momentum in all our activities,” said CEO Didier Michaud-Daniel. “Demand for our globally unique sustainability offering continues to accelerate and our order book is well filled: Green Line BV services and solutions are on track to account for almost 60% of our sales. more and more clients are calling on Bureau Veritas for its expertise, impartiality and independence to help them build trust around issues at the heart of their ESG challenges and of society in general: health, safety, quality, protection of environment and social responsibility”.
“Looking ahead, despite the uncertain environment we are currently facing, we confirm our outlook for 2022,” added the leader. Thus, in the absence of strict containment measures in its main countries of activity, Bureau Veritas still expects to achieve “moderate single-digit” organic revenue growth in 2022 while improving its adjusted operating margin. , and to generate cash flows maintained at a high level, with a cash conversion rate above 90%.
Guillaume Bayre – ©2022 BFM Bourse
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