Intertek Start to 2024 Boosted by Strong Recovery in Consumer Products

Intertek (LON: ITRK) reported a robust start to 2024, with an impressive 7% like-for-like (LFL) revenue growth from January to April. 

The company’s revenue reached £1.08 billion, reflecting a 7.5% growth at constant currency and 2% at actual rates. 

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This growth was notably driven by a strong recovery in Consumer Products, which saw LFL revenue of £297.6 million, up 6.2% year-on-year at constant currency.

Other sectors also contributed to the positive performance: Corporate Assurance grew by 7.6%, Health and Safety by 9.9%, Industry and Infrastructure by 4.2%, and World of Energy by 9.4%.

The company said its strategic focus on pricing, operating leverage, cost controls, and productivity improvements boosted its margin progression.

Intertek CEO André Lacroix noted that Corporate Assurance, Health and Safety, Industry and Infrastructure and World of Energy continue to benefit from increased demand for its ATIC solutions.

He also highlighted that recent acquisitions have been performing well, leveraging scale-up opportunities within Intertek’s global network. The company continues to invest in both organic and inorganic opportunities in high-growth and high-margin segments.

Intertek reaffirmed its 2024 outlook, anticipating mid-single-digit LFL revenue growth, continued margin progression, and robust free cash flow.

Lacroix stated: “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.”