Capgemini records Q1 2024 revenues of €5.5 billion in line with
expectations
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Capgemini records Q1 2024 revenues of
€5.5 billionin line with expectations
-
Revenues of €5,527 million, -3.5% at current exchange rates
and -3.3% at constant exchange rates
-
Bookings of €5,655
million representing a solid book-to-bill ratio of
1.02
Paris, April 30, 2024 – The
Capgemini Group reported Q1 2024 revenues of €5,527 million, -3.5%
year-on-year at current exchange rates and -3.3% at constant
exchange rates*.
Aiman Ezzat, Chief Executive Officer of the
Capgemini Group, said: “As anticipated, the market continued to
slow down in Q1, and we confirm the growth trough is now behind us.
We expect the market to gradually pick up toward an attractive exit
growth rate in Q4, setting up for a more tangible acceleration in
2025.
The pipeline continues to grow and the demand
for large-scale digital transformation projects remains strong.
Client focus remains on operational and cost efficiency programs,
however we also see good traction for our high-added value services
in Intelligent industry as well as for our sustainability
offerings.
In generative AI, we launched a new platform to
enable clients to experiment with industry-specific use cases, and
to industrialize them, at a controlled cost.
In that context, we reiterate all our objectives
for the full year.”
|
Revenues(in millions of euros) |
|
Change |
|
2023 |
2024 |
|
Reported |
At constant exchange rates* |
Q1 |
5,729 |
5,527 |
|
-3.5% |
-3.3% |
In line with the Group’s expectations,
Capgemini’s Q1 revenues were down year-on-year at -3.3% at constant
exchange rates* and -3.6% organically (i.e., adjusted for Group
scope and exchange rates).
In a macro environment which remains soft, large
corporations and organizations are still prioritizing operational
agility and cost efficiency programs with fast payback, at the
expense of non-strategic and discretionary deals. In that context,
Capgemini’s high value-added service offerings - most notably in
Intelligent Industry, as well as in activities driven by Cloud,
Data & Artificial Intelligence - enjoyed a solid traction in
Q1.
OPERATIONS BY REGION
At constant exchange rates, revenues in the
North America region (28% of Group revenues in Q1
2024) declined by -7.1% year-on-year, a rate similar to Q4 2023.
The Financial Services and TMT (Telecoms, Media and Technology)
sectors contributed the most to this decline, partly offset by
growth in the Manufacturing sector.
Revenues in the United Kingdom and
Ireland region (12% of Group revenues) were down -3.2%,
mostly driven by the Financial Services and TMT sectors.
Conversely, the Services and Energy & Utilities sectors enjoyed
solid momentum, as did the Manufacturing sector to a lesser
extent.
Activity in France (20% of
Group revenues) declined by -2.8%, with some softness in the
Manufacturing and Financial Services sectors and a dynamic Public
sector.
Revenues in the Rest of Europe
region (32% of Group revenues) were almost stable at -0.5%. The
underlying performance by sector showed more contrast, with good
momentum in the Energy & Utilities and Public sectors and a
visible contraction of the TMT sector.
Finally, revenues in the Asia-Pacific
and Latin America region (8% of Group revenues) were down
-1.7% almost entirely driven by the Financial Services and TMT
sectors, while the Consumer Goods & Retail sector proved quite
dynamic.
OPERATIONS BY
BUSINESS
At constant exchange rates, total
revenues* of Strategy &
Transformation services (9% of the Group’s total revenues
in Q1 2024) were up +1.6% year-on-year at constant exchange rates.
This growth reflects client focus on strategic initiatives to
transform, optimize and adapt their business and operations to a
challenging economic environment, as well as investment in Gen
AI.
Total revenues of Applications &
Technology services (62% of the Group’s total revenues and
Capgemini’s core business) declined by -4.0%.
Lastly, Operations &
Engineering (29% of the Group’s total revenues) total
revenues contracted by -3.0%.
HEADCOUNT
The Group’s total headcount stood at 337,200 as
at March 31, 2024, down 6% year-on-year. The offshore workforce
represents 57% of the total headcount, i.e. 192,000 employees.
BOOKINGS
Bookings totaled €5,655 million in Q1 2024, down
-3.5% year-on-year at constant exchange rates. The book-to-bill
ratio of 1.02 is above the Q1 historical average.
OUTLOOK
The Group’s financial targets for 2024 are:
- Revenue growth of +0% to +3% at
constant currency;
- Operating margin of 13.3% to
13.6%;
- Organic free cash flow of around
€1.9 billion.
The inorganic contribution to growth should be
marginal at the lower end of the target range, and up to 1 point at
the upper end.
CONFERENCE CALL
Aiman Ezzat, Chief Executive Officer,
accompanied by Nive Bhagat, Chief Financial Officer, and Olivier
Sevillia, Chief Operating Officer, will present this press release
during a conference call in English to be held today at
8.00 a.m. Paris time (CET). You can follow this conference
call live via webcast at the following link. A replay will also be
available for a period of one year.
All documents relating to this publication will
be posted on the Capgemini investor website at
https://investors.capgemini.com/en/.
PROVISIONAL CALENDAR
May 16,
2024 Shareholders’
meetingJuly 26,
2024 Half-Year 2024
results
The dividend payment schedule to be submitted to
the Shareholders’ Meeting for approval would be:
May 29,
2024 Ex-dividend
date on Euronext ParisMay 31,
2024 Payment of the
dividend
DISCLAIMER
This press release may contain forward-looking
statements. Such statements may include projections, estimates,
assumptions, statements regarding plans, objectives, intentions
and/or expectations with respect to future financial results,
events, operations and services and product development, as well as
statements, regarding future performance or events. Forward-looking
statements are generally identified by the words “expects”,
“anticipates”, “believes”, “intends”, “estimates”, “plans”,
“projects”, “may”, “would”, “should” or the negatives of these
terms and similar expressions. Although Capgemini’s management
currently believes that the expectations reflected in such
forward-looking statements are reasonable, investors are cautioned
that forward-looking statements are subject to various risks and
uncertainties (including, without limitation, risks identified in
Capgemini’s Universal Registration Document available on
Capgemini’s website), because they relate to future events and
depend on future circumstances that may or may not occur and may be
different from those anticipated, many of which are difficult to
predict and generally beyond the control of Capgemini. Actual
results and developments may differ materially from those expressed
in, implied by or projected by forward-looking statements.
Forward-looking statements are not intended to and do not give any
assurances or comfort as to future events or results. Other than as
required by applicable law, Capgemini does not undertake any
obligation to update or revise any forward-looking statement.
This press release does not contain or
constitute an offer of securities for sale or an invitation or
inducement to invest in securities in France, the United States or
any other jurisdiction.
ABOUT CAPGEMINI
Capgemini is a global business and technology
transformation partner, helping organizations to accelerate their
dual transition to a digital and sustainable world, while creating
tangible impact for enterprises and society. It is a responsible
and diverse group of 340,000 team members in more than 50
countries. With its strong over 55-year heritage, Capgemini is
trusted by its clients to unlock the value of technology to address
the entire breadth of their business needs. It delivers end-to-end
services and solutions leveraging strengths from strategy and
design to engineering, all fueled by its market leading
capabilities in AI, cloud and data, combined with its deep industry
expertise and partner ecosystem. The Group reported 2023 global
revenues of €22.5 billion.
Get the Future You Want | www.capgemini.com
* *
*
APPENDIX3F1
BUSINESS CLASSIFICATION
- Strategy &
Transformation includes all strategy, innovation and
transformation consulting services.
- Applications &
Technology brings together “Application Services” and
related activities and notably local technology services.
- Operations &
Engineering encompasses all other Group businesses. These
comprise Business Services (including Business Process Outsourcing
and transaction services), all Infrastructure and Cloud services,
and R&D and Engineering services.
DEFINITIONS
Organic growth or like-for-like
growth in revenues is the growth rate calculated at
constant Group scope and exchange rates. The Group scope
and exchange rates used are those for the reported period. Exchange
rates for the reported period are also used to calculate
growth at constant exchange rates.
Reconciliation of growth rates |
Q1 2024 |
Organic growth |
-3.6% |
Changes in Group scope |
+0.3 pts |
Growth at constant exchange rates |
-3.3% |
Exchange rate fluctuations |
-0.2 pts |
Reported growth |
-3.5% |
When determining activity trends by business and
in accordance with internal operating performance measures, growth
at constant exchange rates is calculated based on total
revenues, i.e., before elimination of inter-business
billing. The Group considers this to be more representative of
activity levels by business. As its businesses change, an
increasing number of contracts require a range of business
expertise for delivery, leading to a rise in inter-business
flows.
Operating margin is one of the
Group’s key performance indicators. It is defined as the difference
between revenues and operating costs. It is calculated before
“Other operating income and expense” which include amortization of
intangible assets recognized in business combinations, expenses
relative to share-based compensation (including social security
contributions and employer contributions) and employee share
ownership plan, and non-recurring revenues and expenses, notably
impairment of goodwill, negative goodwill, capital gains or losses
on disposals of consolidated companies or businesses, restructuring
costs incurred under a detailed formal plan approved by the Group’s
management, the cost of acquiring and integrating companies
acquired by the Group, including earn-outs comprising conditions of
presence, and the effects of curtailments, settlements and
transfers of defined benefit pension plans.
Normalized net profit is equal to profit for the
year (Group share) adjusted for the impact of items recognized in
“Other operating income and expense”, net of tax calculated using
the effective tax rate. Normalized earnings per
share is computed like basic earnings per share, i.e.,
excluding dilution.
Organic free cash flow is equal
to cash flow from operations less acquisitions of property, plant,
equipment and intangible assets (net of disposals) and repayments
of lease liabilities, adjusted for cash out relating to the net
interest cost.
Net debt (or net
cash) comprises (i) cash and cash equivalents, as
presented in the Consolidated Statement of Cash Flows (consisting
of short-term investments and cash at bank) less bank overdrafts,
and also including (ii) cash management assets (assets presented
separately in the Consolidated Statement of Financial Position due
to their characteristics), less (iii) short- and long-term
borrowings. Account is also taken of (iv) the impact of hedging
instruments when these relate to borrowings, intercompany loans,
and own shares.
RESULTS BY REGION
|
Revenues(in millions of euros) |
|
Year-on-year growth |
|
|
Q1 2023 |
Q1 2024 |
|
Reported |
At constant exchange rates |
|
North America |
1,663 |
1,527 |
|
-8.2% |
-7.1% |
|
United Kingdom and Ireland |
686 |
684 |
|
-0.4% |
-3.2% |
|
France |
1,163 |
1,131 |
|
-2.8% |
-2.8% |
|
Rest of Europe |
1,739 |
1,729 |
|
-0.6% |
-0.5% |
|
Asia-Pacific and Latin America |
478 |
456 |
|
-4.5% |
-1.7% |
|
TOTAL |
5,729 |
5,527 |
|
-3.5% |
-3.3% |
|
RESULTS BY BUSINESS
|
Total revenues* (% of Group revenues) |
|
Year-on-year growthat constant exchange
rates in total revenues of the
business |
|
Q1 2023 |
Q1 2024 |
|
Strategy & Transformation |
9% |
9% |
|
+1.6% |
Applications & Technology |
62% |
62% |
|
-4.0% |
Operations & Engineering |
29% |
29% |
|
-3.0% |
1 Note that in the appendix, certain totals may
not equal the sum of amounts due to rounding adjustments.
- Capgemini_-_2024-04-30_-_2024_Q1_Revenues
- Capgemini_Q1_2024_infographics_ENG
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