Press Release - Full Year Financial Results 2016

24/02/17


Neuilly sur Seine, France, February 24, 2017


2016 Full Year Results: resilient performance

Slightly positive organic growth expected in 2017

Mid-term ambition intact, with timing delayed by one-year overall 

 

Revenue of €4.55 billion, up 1.4% at constant currency vs. 2015

-      Organic growth1 of -0.6%

-      Two-thirds of the Group portfolio delivered positive organic revenue 

      growth with an improving trend in Q4 (-0.3%)

-      One-third declined, primarily impacted by the oil & gas and shipping 

      markets, while in Q4 only one-quarter remained in negative organic growth

-      Growth initiatives contributed 1.7 points to organic growth

-       External growth of 2.0%: nine targeted acquisitions completed

-      Negative currency impact of 3.2%


Adjusted operating margin of 16.2%, down 25 basis points organically vs. 2015

-      Negative impact from activities in downturn (oil & gas, Marine and GSIT)

-      Mitigated by the positive contribution of the operational excellence program


Proactive restructuring with €42.6m charges booked in 2016

Adjusted net profit of €409 million (€0.94/share), up 3.7% at constant currency vs. 2015

Operating cash-flow of €594 million, impacted by one-off items

Net income of €319 million, up 34.2% at constant currency

Proposed dividend of 55 cents per share, up 7.8% vs. 2015


 Chief Executive Officer Didier Michaud-Daniel commented:

“In 2016 Bureau Veritas proved to be resilient despite the challenging commodities and shipping market environment. Several of the Group’s portfolio activities had a solid year, notably Consumer Products, IVS, Agri-Food and Certification. The 2016 financial year closed with growth and profitability in line with our latest guidance, with an improving trend in organic growth in the last quarter. In 2016, China became the leading country of Bureau Veritas in terms of Group revenue at 16.0%.

As we progress with the global transformation of the Group, I have tightened the Executive Committee team to make the organization more agile and facilitate the roll-out of our refocused five Growth Initiatives. We strive to significantly increase our commercial development and innovation efforts while continuing proactive restructuring and operational efficiency. In a still uncertain environment, our ambition is intact but we expect the timing of our 5-year plan to be delayed by one year. We now aim at   returning

to a 5-7% organic revenue growth by 2020, adding circa €1.5bn to Group revenue in 2020 compared to 2015 revenue2, achieving an adjusted operating margin above 17% in 2020, and continuously generating a high free cash flow.

In 2017, we anticipate a slightly positive organic growth with an adjusted operating margin at circa 16%, as well as higher cash flow generation compared to 2016”.


1 Organic growth is the increase in revenue versus last year, at constant currency and scope (i.e. acquisitions excluded)

2 At initial plan exchange rates (as presented during October 2015 Investor Days)



2016 Key figures

 


The Board of Directors of Bureau Veritas met yesterday and approved the financial statements for 2016. The main consolidated financial items are presented below:

 

(millions of euros)

2016

2015

Change

@cc

Revenue

4,549.2

4,634.8

(1.8)%

+1.4%

Adjusted operating profit(a)

734.9

775.2

(5.2)%

(0.7)%

Adjusted operating margin

16.2%

16.7%

(55)bp

(35)bp

Operating profit

609.7

576.9

+5.7%

+10.9%

Adjusted net profit(a)

409.0

420.3

(2.7)%

+3.7%

Net profit

319.4

255.3

25.1%

+34.2%

Adjusted EPS(a)

0.94

0.96

(2.1)%

+3.8%

EPS

0.73

0.58

25.3%

+34.4%

Operating cash flow(a)

594.4

706.1

(15.8)%

(14.4)%

Adjusted net financial debt(a)

1,996.4

1,862.7

7.2%

5.8%

 

(a) Financial indicators not defined by IFRS presented in Appendix 5

CONTACT US

Bureau Veritas

Phone: +33 1 55 24 70 00

Send an email
CONTACT US

Bureau Veritas

Phone: +33 1 55 24 70 00

Send an email
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