The company reported that despite global economic turbulence, all its divisions, including food testing, reported good organic revenue growth for the first ten months of 2011
However, it did report that revenue had fallen slightly from the 8.3% revenue growth across all divisions in the first half of the year.
The company has put this slowdown down to difficulties in the world economy, but hopes to achieve around 10% growth for the year.
Food testing acquisitions
Analysts had feared the economic downturn would hurt the group’s goods testing division.
According to the company’s management statement, the units performed better in the past three months than in the rest of the year – contributing to the company’s stock price increase.
An Intertek spokesperson told FoodQualityNews.com: “The food business is showing faster growth than the overall growth on an organic basis, and particularly if you include the recent acquisition such as FAL.”
Intertek acquired UK-based chemical and microbiological food testing lab Food Analytical Laboratories (FAL) in August this year, with the aim of further establishing itself in the European food testing market.
“Food is particularly strong in emerging markets where Intertek has focused its capital investment – India, Indonesia, Thailand and Vietnam.”
“Whilst the outlook is good for all of Intertek, this is especially true of food where Intertek expects to continue its build out and provide global contracts to the multi-national food companies,” added the spokesperson.
High single-digit growth
The company’s interim management statement suggested that despite a slight economic downturn in the last few months it is confident of “positive trading” across all its divisions.
Along with the company’s acquisitions and currency effects, total reported revenue grew by 26% for the first ten months of the year.
In the management statement, which covered the period from 1 July 15 November, Intertek CEO Wolfhart Hauser said: “Despite the economic environment, we continued to see positive trading across all our divisions and we were pleased to see consumer goods making solid progress.”
“Our organic growth drivers remain strong, underpinned by the diversity of our different industries, services and geographies. Whilst there remains significant economic uncertainty, this diversity supports our objectives of continued high single digit organic revenue growth.”