Half Year 2024 Intertek Group PLC Earnings Call Transcript
Key Points
- Intertek Group PLC (IKTSF) reported double-digit growth in operating profit, EPS, and free cash flow for H1 2024.
- The company achieved broad-based like-for-like revenue growth of 6.1% at constant currency.
- Operating margin improved by 110 basis points at constant currency, reaching 15.9%.
- EPS grew by 17.5% at constant currency, reflecting strong profitability.
- Free cash flow increased by 14%, with excellent cash conversion at 118%.
- Revenue growth at actual rates was only 1.8%, impacted by the strengthening of sterling.
- Industry infrastructure division reported low single-digit like-for-like revenue growth due to a slowdown in large infrastructure projects in the US.
- The GTS segment within the consumer products division performed slightly below last year.
- The company faces challenges in the OpEx business within industry services, leading to a double-digit decline in this segment.
- There is uncertainty regarding the impact of potential protectionist policies in the US on SKU volume production.
Good day, ladies and gentlemen, and welcome to Intertek H1 results 2024. (Operator Instructions) I would like to remind all participants that this call is being recorded. Questions will follow after the presentation. I would like to hand over to André Lacroix to start the presentation.
Good morning to you all, and thanks for joining us. On our call here with me are, Colm Deasy, our CFO; and Denis Moreau, our VP of Investor Relations. I would like to start our call today recognizing all of my colleagues at Intertek for having delivered a strong performance in the first half of the year with double digit growth in operating profit, EPS, and free cash flow.
Here are the key takeaways from our call today, we've delivered broad-based like-for-like revenue growth of 6.1% at constant currency. We saw a very strong margin performance with the year-on-year improvement of 110 bps at constant currency that resulted in double digit EPS growth of 17.5% at constant currency.
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