Intertek reports solid start to 2025, reaffirms guidance

Published 22/05/2025, 10:52
Intertek reports solid start to 2025, reaffirms guidance

LONDON - Intertek Group plc (LSE:LON:ITRK) on Thursday reported a 4.5% like-for-like (LFL) revenue growth at constant currency for the first four months of 2025, slightly below analyst expectations but showing strength in key divisions.

The company reaffirmed its full-year outlook, expecting mid-single digit LFL revenue growth, margin progression, and strong cash generation.

The global quality assurance provider saw revenue reach £1,093.9 million for the January-April period, representing a 4.6% increase at constant currency and 1.2% at actual rates.

The company’s higher-margin divisions performed strongly, with Consumer Products growing 7.8% LFL and Corporate Assurance up 8.9% LFL. Health and Safety and Industry and Infrastructure divisions grew 3.5% and 2.7% LFL respectively, while the World of Energy division remained stable.

Despite missing overall revenue expectations by approximately 3.5%, Intertek reported robust margin progression driven by divisional mix, good operating leverage, and productivity improvements.

The company also highlighted strong free cash flow generation and the commencement of its £350 million share buyback program, with £75.3 million already repurchased.

CEO André Lacroix commented on the results, stating, "We have had a good start to the year, with strong LFL revenue growth in our higher margin divisions. Our role in society is mission-critical, providing a unique suite of industry-leading ATIC solutions to over 400,000 clients across every industry and region in each of our five divisions."

Intertek’s Consumer Products division saw double-digit LFL growth in Softlines, mid-single digit growth in Hardlines and Electrical & Connected World, and high-single digit growth in the GTS sub-division.

However, the World of Energy division experienced a slowdown in North America, and the Health and Safety division faced challenges in its Chemicals & Pharma sub-division.

The company remains confident in its outlook for 2025, citing increased client focus on risk-based quality assurance and new opportunities arising from changing global trade routes and supply chains.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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