Skip to main content
  • 16.60%
    Share capital 30/09/2018
  • 2,893 EUR M
    Value of the stake 30/09/2018
  • 16.60%
    Voting rights 30/09/2018
  • 3
    Number of representatives in statutory bodies 30/09/2018
Investment Year 2013 Investment history

SGS provides tailored inspection, verification, testing and certification solutions to its customers to make their commercial activities faster, simpler and more efficient. Its worldwide network consists of more than 95,000 employees at more than 2,400 offices and laboratories.


Performance in 2017

The SGS group achieved solid results in 2017. Total revenue reached CHF 6.3 billion and SGS is on track to deliver the revenue growth projected in the 2020 strategic plan. The group realised revenue growth of 5.4% on a constant currency basis, of which 4.2% was organic and 1.2% was contributed by recent acquisitions. On a historical reported basis, group revenue increased by 6.1%. Significant growth was reported across the vast majority of the portfolio.

Adjusted operating income reached CHF 969 million versus CHF 919 million in prior year, an increase of 5.4% (constant currency basis). The adjusted operating income margin remained stable compared to prior year (15.3%) at constant currency, with the improved underlying performance being partially offset by strategic investments.

Profit for the period reached CHF 664 million, an increase of 13.3%, mainly driven by improved performance, fewer restructuring expenses and a one-time tax rate decrease to 22.0% (2016: 24.0%) driven by the US tax reform, despite a non-tax deductible goodwill impairment of CHF 30 million impacting Industrial services.

Profit attributable to equity holders reached CHF 621 million, an increase of 14.4% compared with CHF 543 million disclosed in 2016.

The group generated solid operating cash flow at CHF 987 million supported by strong underlying business performance. Net investments in fixed assets were CHF 281 million and the group completed 12 acquisitions during the period for a total cash consideration payable of CHF 40 million. In 2017, the group paid a dividend of CHF 528 million.

At 31 December 2017, the group’s net debt position amounted to CHF 698 million compared with a net debt position of CHF 736 million at 31 December 2016.

Investment case

The industry is characterised by high barriers to entry and attractive fundamentals:

  • Expansion and ageing of infrastructure
  • Externalisation of activities
  • Development of regulations
  • Growing complexity of products
  • Consolidation

In this sector, SGS offers a particularly attractive profile:

  • World leader
  • Diversified portfolio
  • Ideally positioned to take advantage of growth opportunities
  • Resilient across economic cycles


Audit Committee (1/3*) Board of Directors (3/9*) Nomination and Remuneration Committee (1/3*)
Member Member
Member Member
* Number of GBL's representatives in statutory bodies in relation to the total number of members. Governance information is dated 31/12/2017, except where superseded by more recent public disclosures.