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Bureau Veritas SA (BVRDF) (FY 2024) Earnings Call Highlights: Strong Organic Growth and Record ...

In This Article:

  • Revenue: EUR6.2 billion, up 6.4% reported and 10.2% organically.

  • Adjusted Operating Profit: EUR996 million, margin of 16%, up 11 basis points year-on-year.

  • Adjusted EPS: EUR1.38, up 8.7% and 17% at constant currency.

  • Free Cash Flow: EUR843 million, representing 13.5% of revenue, up 27.9% year-on-year.

  • Cash Dividend: Proposed EUR0.90 per share, up 8.4% year-on-year.

  • Organic Growth: 10.2% for the full year, with 9.6% in Q4.

  • Marine & Offshore Organic Growth: 13.7% for the year.

  • Industry Organic Growth: 19.9% for the year.

  • Certification Organic Growth: 15% for the year.

  • Consumer Products Organic Growth: 8.1% for the year.

  • Net Financial Debt: EUR1.2 billion at year-end.

  • CapEx: 2.2% of group revenue.

  • Leverage: 1.06 times.

Release Date: February 25, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Bureau Veritas SA (BVRDF) reported a revenue of EUR6.2 billion for 2024, marking a 6.4% increase on a reported basis and 10.2% organically.

  • The company achieved a record high free cash flow of EUR843 million, representing 13.5% of revenue and a 27.9% year-on-year growth.

  • Adjusted operating profit increased by 7.1% to EUR996 million, with a margin of 16%, showing a year-on-year improvement.

  • Bureau Veritas SA (BVRDF) improved its nonfinancial ratings and was included in the Carbon Disclosure Project A-List.

  • The company demonstrated strong growth in sustainability, energy, decarbonization, and cyber sectors, with over 50% of the portfolio delivering high single-digit or double-digit organic growth.

Negative Points

  • The company faced foreign exchange headwinds, which negatively impacted total growth by 4.3% on a reported basis.

  • Agri-Food & Commodities segment experienced a margin decline of 91 basis points due to a negative mix effect from metals and minerals.

  • The Building & Infrastructure business in China contracted following government spending reductions.

  • The Technology segment within Consumer Products contracted slightly in 2024, facing decreased demand for wireless and mobility products.

  • Bureau Veritas SA (BVRDF) acknowledged the need for acceleration in M&A to build capabilities and footprint, indicating potential challenges in achieving growth targets without acquisitions.

Q & A Highlights

Q: Could you quantify the benefits from restocking within consumer products and provide growth and margin expectations for 2025? A: Hinda Gharbi, CEO: The consumer business has shown solid growth due to securing key contracts and diversifying services and geographies. This growth is not a one-off and provides a strong baseline for 2025. Francois Chabas, CFO: We do not expect the margin of Consumer Products to be lower in 2025 than in 2024, thanks to a reshaped business and cost base.