Intertek reported supply chain diversification and chemicals testing by apparel and footwear companies drove growth in the first half of the year at its fasting growing segment, which provides auditing and certification services to manufacturers, distributors and retailers of consumer brands.
The U.K.-based company offers expertise on quality issues ranging from restricted hazardous substances and sustainability, to supply chain security and legislation relating to environmental, ethical and trade security issues. Services include testing, inspection, auditing, advisory services, quality assurance and hazardous substance testing. Its customers include the world’s leading retailers, their partners and suppliers.
In the first half of the year, revenues from the Consumer Goods segment reached £196.2 million, up 11.4 percent, or 5.7 percent currency-neutral. Softlines revenues grew strongly in the first half, with particular strength in emerging countries including Vietnam, Bangladesh and Turkey, reflecting the broadening of retailers’ sourcing patterns. Concern in relation to the use of harmful chemicals in clothing manufacturing process continued to drive growth in chemical testing, while footwear testing also grew strongly following Intertek's recent investment in new laboratory capacity.
Consumer Goods, which also provides services to makers of toys, appliances and
other consumer hard goods, generated adjusted operating profit of £62.8
million, up 12.9 percent (+5.5 percent c-n) for the first half of 2014.
The company said it expects continued good growth in the Consumer Goods division to continue in the back half of the year.
Intertek's four other segments all posted slower growth. The segments and their change in revenue for the first half are: Commercial
& Electrical (+5.4 percent c-n), Chemicals & Pharmaceuticals
(+3.2 percent c-n), Commodities (+4.4 percent c-n) and Industry &
Assurance (-6.3 percent c-n).