Strong operating and financial performance delivered in 2022; Solid 2023 outlook
2022 Key figures1
- Revenue of EUR 5,650.6 million for the full year 2022, up 7.8% organically (including 9.3% in the fourth quarter) and up 13.4% on a reported basis
- Adjusted operating profit of EUR 902.1 million, up 12.5% versus EUR 801.8 million in 2021, representing an adjusted operating margin of 16.0%, and up c.10 basis points excluding the Chinese lockdown impact
- Operating profit of EUR 799.3 million, up 11.2% versus EUR 718.8 million in 2021
- Attributable net profit of EUR 466.7 million, up 10.9% versus EUR 420.9 million in 2021
- Adjusted net profit of EUR 533.9 million (EUR 1.18 per share), up 11.0% versus EUR 480.8 million in 2021
- Free cash flow of EUR 657.0 million (11.6% of Group revenue), up 9.0% year-on-year led by continued disciplined capex policy (2.2% of Group revenue), and a well-controlled working capital requirement (6.0% of Group revenue) despite the strong topline growth in the fourth quarter
- Adjusted net debt/EBITDA ratio2 reduced to 0.97x as of December 31, 2022 versus 1.10x last year
- Proposed dividend of EUR 0.77 per share3 , up 45.3% year on year, payable in cash
- Diversified portfolio drives delivery of 7.8% organic revenue growth in the year across all geographies, despite the Covid-19 related disruption in China and the consequences of the war in Ukraine
- Maintained momentum for Sustainability and ESG-related solutions across the entire portfolio, representing 55% of Group sales through the BV Green Line of services and solutions
- Strong cash conversion4 at 93% above the 90% target set
- Strengthening of the Group balance sheet and further deleveraging; 100% of debt at fixed rate
- Increase of the payout ratio to around 65% proposed by the Board (from 50%) to reflect the company’s strong financial position. Moving forward, the Group expects to maintain a dividend of around 65% of its adjusted net profit
- Acquisition of four bolt-on companies in strategic areas (Consumer Products Services, Buildings & Infrastructure and Sustainability assurance) for total annualized revenue of c. EUR 74 million
- Good progress towards the 2025 CSR ambitions and commitment recognized by several non-financial ratings
Based on a healthy sales pipeline and the significant growth opportunities related to Sustainability, and taking into account the current macro uncertainties, Bureau Veritas expects for the full year 2023 to deliver:
- Mid-single-digit organic revenue growth;
- A stable adjusted operating margin;
- A strong cash flow, with a cash conversion4 above 90%.
Didier Michaud-Daniel, Chief Executive Officer, commented:
“The Group’s full year results demonstrate the strength of our diversified business portfolio and geographical footprint. We delivered a very sound 7.8% organic revenue growth, protected our margin and continued to deleverage the company, despite the consequences of the war in Ukraine and the Covid-19-related disruption in China. The Group has a strong and sound financial structure. Its proven model ensures a strong capacity for growth and for returning cash to shareholders. The dividend increase proposed by the Board illustrates the confidence in the Group’s prospects.
By being more resilient, more diversified and more digital, Bureau Veritas is well positioned to continue to lead the TIC sector – especially in terms of ESG. I am proud of the work accomplished with all our stakeholders, and very optimistic regarding the Group’s future. Hinda Gharbi has the required leadership qualities and vision to be very successful in bringing BV to the next level.
I would like to pay a tribute to all our employees in the 140 countries where we operate who have shown strong commitment, agility and hard work to deliver this outstanding performance”.
Hinda Gharbi, Deputy Chief Executive Officer, added:
“I too reiterate my congratulations to our colleagues globally for their contributions to our strong results both operationally and financially, and for working diligently towards our ESG goals and for continuing to gain our clients’ trust. It is with great ambition and anticipation that I look forward to shaping Bureau Veritas’ future.
Building on a solid portfolio, and a track record of reliable execution and resilient management, we want to be our clients’ preferred partner as they address imperatives of sustainability, regulatory compliance, and excellence in their sectors.
To address these imperatives, we will further develop and leverage the diversity of our people knowledge, skills and thinking to shape our portfolio with sustainability at its core. Most importantly, innovation and digital will be at the heart of how we will create new value for our clients, employees, and shareholders’’.
1 Alternative performance indicators are presented, defined and reconciled with IFRS in appendices 6 and 7 of this press release.
2 Ratio of adjusted net financial debt divided by consolidated EBITDA (earnings before interest, tax, depreciation, amortization and provisions), adjusted for any entities acquired over the last 12 months.
3 Proposed dividend, subject to Shareholders’ Meeting approval on June 22, 2023.
4 Net cash generated from operating activities/Adjusted Operating Profit.