Intertek Group Plc reports strong start to 2024 with 7.0% LFL revenue growth

Intertek Group PLC (LON:ITRK) has announced its latest trading statement.

Strong start to the year with faster LFL revenue growth¹ of 7.0%

•    Jan-April revenue of £1,080.8m, growth of 7.5% at constant currency and 2.0% at actual rates

•    Broad-based LFL revenue growth¹ of 7.0%: 6.2% in Consumer Products, 7.6% in Corporate Assurance, 9.9% in Health and Safety, 4.2% in Industry and Infrastructure and 9.4% in World of Energy

•    Margin progression driven by pricing, operating leverage, cost controls and productivity improvements

•    Cash management delivering strong free cash flow

•    Continued investment in organic and inorganic opportunities

•    Recent acquisitions in attractive growth and margin segments performing well

•    Reconfirming 2024 outlook: Mid-single digit LFL revenue growth¹, margin progression and

strong free cash flow

•    Intertek AAA growth strategy execution on track to unlock the significant value growth opportunity ahead

André Lacroix: Chief Executive Officer statement

“We have had a strong start to 2024, delivering broad-based 7.0% LFL revenue growth¹, driven by a strong recovery in Consumer Products, whilst Corporate Assurance, Health and Safety, Industry and Infrastructure and World of Energy continue to benefit from increased demand for our ATIC solutions.  Recent acquisitions are performing well, benefitting from the scale-up opportunities within our global network, and we continue to invest in organic and inorganic opportunities in high-growth and high-margin segments.

I would like to recognise my colleagues for their passion, commitment and innovation, enabling us to deliver a strong performance in the first four months of the year, providing sustainable growth and value for all stakeholders. We have delivered faster LFL revenue growth, slightly ahead of our expectations and we have seen robust margin progression driven by our pricing initiatives, operating leverage linked to growth, disciplined cost approach and productivity improvements. Our free cash flow was strong which, combined with our robust balance sheet, enables us to invest in growth and accelerate performance.

Our clients are increasing their focus on Risk-based Quality Assurance to operate with higher standards on quality, safety and sustainability in each part of their value chain, triggering a higher demand for our ATIC solutions which are powered by our Science-based Customer Excellence ATIC Advantage. In May 2023, we unveiled our Intertek AAA differentiated growth strategy to capitalise on the best-in-class operating platform we have built and to target the areas where we have opportunities to get better. Our highly engaged, customer-centric organisation is laser-focused to take Intertek to greater heights, and the execution of our AAA strategy is on track as we continue to deliver sustainable growth and value for all stakeholders.

Based on our strong start to the year, we reconfirm our guidance for 2024. We expect the Group will deliver a robust performance with mid-single digit LFL revenue growth at constant currency, margin progression and a strong cash flow performance. We are well positioned to get back to our peak margin of 17.5% and beyond in the medium-term, capitalising on the revenue growth acceleration we are seeing for our ATIC solutions, our disciplined performance management and our investments in high growth and high margin segments.”

1.    At constant currency

Analysts’ Call

A call for analysts and investors will be held today at 7.45am UK time. Details can be found at http://www.intertek.com/investors/