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23 Nov 2023 | 07:24

Intertek on track to hit LFL guidance, but FX limits growth

(Sharecast News) - Product inspection, testing and certification company Intertek said it's on track to deliver on targets for 2023 after a solid third quarter, though currency movements were limiting growth more than expected. Like-for-like sales since the start of the year have improved by 6.3% and the company said it still expects to meet expectations of mid-single-digit LFL revenue growth this year.

In the July to October period alone, the company delivered LFL growth of 5.2% as a combined 6.9% increase across the Corporate Assurance, Health and Safety, Industry and Infrastructure, and World of Energy divisions was offset by a 1% increase in Consumer Products.

However, the company did warn that currency headwinds would likely limit reported growth at actual rates.

"Currency has remained volatile, and we are updating our FY forex guidance. The average Sterling rate since the beginning of the year applied to our FY 2022 results, would reduce our FY revenue by 300bps and FY earnings by 500bps."

"We have delivered the highest LFL revenue growth in the last 10 years at constant currency, benefitting from the robust demand for our ATIC solutions," said chief executive André Lacroix.

"We have seen margin progression driven by our pricing initiatives, good operating leverage and our disciplined cost approach. Our strong free cash flow combined with our robust balance sheet enables us to invest in growth and accelerate performance."

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