H1 2020 Key Figures1
- Revenue of EUR 2,200 million in the first half of 2020, down 9.0% organically (down 15.6% in the second quarter), and down 11.1% year on year
- Adjusted operating profit of EUR 216 million, down 43.3% year on year, showing a margin decline to 9.8%; cushioned by cost containment measures
- Operating profit of EUR 60 million, down 82.0% year on year
- Attributable net loss of EUR 34 million, versus a EUR 171 million profit last year
- Adjusted net profit of EUR 87 million (EUR 0.19 per share), down 57.7% year on year
- Free cash flow of EUR 270 million (12.3% of Group revenue), up 91.4% year on year
- Adjusted net debt / EBITDA ratio further reduced to 2.00x as of June 30, 2020 versus 2.25x last year
1 Alternative performance indicators are presented, defined and reconciled with IFRS in appendices 6 and 7 of this press release.
H1 2020 Highlights
- Portfolio diversification gives overall resilience in the face of the Covid-19 crisis. Around 80% of the Group’s revenue has shown a good level of resistance while the rest of the portfolio (c. 20%, namely Certification and Consumer Products) was severely hit by the lockdown measures
- Acceleration of digital solutions for clients: increased use of digital tools to deliver services remotely
- “Restart your business with BV” delivers strong momentum. A suite of solutions to accompany companies in their business resumption with appropriate health, safety and hygiene conditions
- Austerity plan put in place to reduce costs
- Measures successfully implemented to protect the cash position and reduce Working Capital Requirement
- Solid financial position with EUR 2.1 billion of available cash and cash equivalents at the end of June
2020 Outlook
- Given the uncertainty surrounding the Covid-19 pandemic still affecting many of the countries in which the Group operates, Bureau Veritas is considering different scenarios for the full year 2020
Didier Michaud-Daniel, Chief Executive Officer, commented:
“Throughout the first half of 2020, Bureau Veritas’ whole organization has been mobilized to mitigate the impact of the crisis with three clear actions: ensuring health & safety of all Bureau Veritas employees, protecting the financial solidity of the Group, and ensuring business continuity with and for our clients, both in the field and remotely via digital tools. Bureau Veritas has shown agility, innovation and adaptability. I am very proud of our teams’ exemplary efforts and engagement. The successful launch of the “Restart your business with BV” solution in a very short period of time to support our clients across all sectors with their resumption of operations is a good illustration of this mindset.
In H1, our organic revenue proved to be resilient overall despite the pandemic, down 9.0% with around 80% of the portfolio showing a good level of resistance, while 20% was severely impacted by the lockdown measures. It clearly demonstrates the soundness of our ongoing strategy of enhanced resilience through diversification. For the remainder of 2020, given the current uncertainty and poor visibility, we envisage different scenarios.”