Bureau Veritas strengthens its presence in Asia – 03/20/2024 at 08:44


(AOF) – Bureau Veritas announces that it has signed definitive agreements for the acquisition of three players in order to diversify its position in testing and certification services for the consumer electrical and electronic products segment in South and North Asia -East, for a cumulative turnover of around 20 million euros in 2023. In detail, the certification and quality control group acquired two Korean companies and an Indian company .

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Key points

– Group born in 1828, world number one (5% of the market) in the market for inspection and certification of products and laboratory testing;

– Turnover of €5.65 billion generated by six divisions: construction & infrastructure (29%), agri-food & raw materials (22%), industry (21%), consumer goods (13%), certification (8%) and marine&offshore;

– Turnover distributed between Europe for 34%, Asia-Pacific for 30% (including China, the group’s leading country in terms of workforce and turnover, for 18% of the total), America for 27% and Africa-Middle East;

– Business model based on the exploitation of the value of existing activities and technological changes and on the selectivity of growth opportunities;

– Capital controlled 35.48% by Wendel, Aldo Cardoso chairing the board of directors of 12 members, Didier Michaud-Daniel, general manager, leaving his place to Hinda Gharbi on June 22;

– Solid balance sheet with €1.9 billion in equity, €975 million in net debt with leverage of 0.97 and €2.3 billion in cash, the borrowings all being at fixed rates with maturities beyond 2024 .

Challenges

– 2025 strategy based on 3 growth drivers:

– scale (standardization of the offer), expand (energy transition and sustainability issues) and lead (in connectivity, cybersecurity and traceability),

– single-digit annual revenue growth and operating margin of +16%;

– Innovation strategy broken down into 2 aspects:

– ICT technology digitalizing the core of operations via global and vertical transversal platforms, improving the profitability of existing ICT services,

– ICT for technology identifying the best additional revenue opportunities – traceability, asset monitoring, cybersecurity compliance diagnostics, etc.

– accelerated via incubation programs, Data lab, research or industrial partnerships;

– Environmental strategy driven by the internal Clarity solution and validated by the SBTi:

– by 2030, reduction of 42% vs. 2021 in CO2 emissions for scopes 1 and 2 and 25% for scope 3,

– 55% of sales from BV green line services;

– support for customers with the provision of Clarity solutions;

– Resistance of the business portfolio, 45% coming from long contracts;

– 3 assets: reputation for integrity, public approvals and accreditations, network density.

Challenges

– Reduction of presence in China-Ukraine (1% of revenues) and negative impact on operating margin of end-of-year closures in China;

– Differences in margins between divisions, with construction and industry activities having the lowest margins;

– Impact of inflation on salaries mainly, passed on to sales prices;

– After an 8.9% increase in revenues at the end of March, 2023 objectives of moderate revenue growth and stable operating margin;

– 2022 dividend up 45% to €0.77, or 65% distribution rate.

Sector sheet – Business services

A new entity in employee benefits

Pluxee, the division specializing in employee benefits of the services giant Sodexo, will take off on the stock market in 2024. This activity benefits from strong dynamism with organic growth in the third quarter (ended at the end of May) higher than expectations (+25 .5% versus 17.5% expected). The new entity will thus be able to better compete with its competitor Edenred. Since its split from the Accor group in 2010, this company has seen its activity jump and almost double. Having become the world leader in meal vouchers, it even recently joined the flagship stock market index of the Paris market, the CAC 40. This success comes from targeted acquisitions, international development and successful digitalization.



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