Intertek Group (ITRK) Trading Update summary

Trading performance and revenue growth

• Year-to-date revenue reached £2.82 billion, up 6.6% at constant currency, with like-for-like growth of 6.3% and acquisitions contributing £13.4 million.

• July–October group revenue was £1.15 billion, up 6.8% at constant currency, with 6.6% like-for-like growth.

• Consumer Products, Corporate Assurance, and Health and Safety divisions delivered 9.5% combined growth, with Consumer Products at 9.4% and double-digit gains in Softlines.

• Industry and Infrastructure and World of Energy divisions performed in line with guidance, with Industry and Infrastructure at 1.1% growth and World of Energy at 6.3%.

• Strong margin progression and free cash flow, supported by divisional mix, pricing, operating leverage, and cost controls.

Guidance and outlook

• Upgraded full-year guidance for Consumer Products to high single-digit like-for-like revenue growth; guidance for other divisions remains unchanged.

• 2024 guidance: mid-single digit like-for-like revenue growth at constant currency, strong margin progression, and excellent free cash flow.

• Net debt expected in the range of £500–550 million before M&A or Forex movements; capex guidance for 2024 is £125–135 million.

• Currency volatility expected to reduce FY revenue by 450bps and earnings by 600bps.

• Long-term: targeting mid-single digit like-for-like revenue growth, margin accretive growth, and sustainable value creation through disciplined investments.

Market and business drivers

• Growth in Consumer Products driven by increased client investment in new product development, sustainability, and digital traceability, especially in Softlines.

• China business accelerated to 7.4% like-for-like growth, supported by strong export performance and diversification, with APAC as the largest export partner.

• China Plus One strategy and global supply chain diversification are expanding the addressable market, increasing the number of SKUs and suppliers requiring testing and certification.

• Pricing contributed about one-third of like-for-like revenue growth, with ongoing focus on ethical price increases and upselling margin-accretive innovations.

• Recent acquisitions in high-growth, high-margin segments are performing well and expanding capabilities in environmental analysis, SaaS-based People Assurance, and minerals testing.