Paris – Capgemini Group posted revenue of €5,167 million in the first quarter of 2022, up 21.0% year-on-year at current exchange rates and 17.7% at constant exchange rates. constant exchange rates*.
Aiman Ezzat, Chief Executive Officer of Capgemini Group, said: “Capgemini made an excellent start to the year with a further acceleration in growth compared to the previous quarter. This is the fourth consecutive quarter with double-digit growth. It clearly demonstrates the evolution of the Group’s growth profile and our ability to gain market share.
We take full advantage of the strong alignment of our capabilities and portfolio of offerings with the structural demand for digital transformation from our customers. Our digital transformation capabilities coupled with our strong industry focus allow us to position ourselves as our clients’ key partner for their most ambitious transformations.
Our brand is strong. We attract and develop the best talent in a very competitive market. We increased our global workforce by 16,000 in the last quarter to reach 340,000 employees worldwide.
I also have a special thought for our Ukrainian colleagues, who are showing exceptional courage and resilience. I would like to thank all our employees around the world, particularly in Poland and Romania, for their great solidarity in these difficult times. »
(in millions of euros)
The Group’s business accelerated further in Q1 2022, with growth of +17.7% at constant exchange rates*. The pace of growth has indeed strengthened compared to the 12.5% observed in Q4 2021, all regions and all sectors combined. Organic growth (i.e. corrected for Group scope and exchange rates) reached +16.3%, up 3.1 points compared to Q4 2021.
This strong momentum is mainly driven by growth in the Cloud and Data, as well as in the areas of Smart Industry and Customer First. Thanks to investments in these areas, the Group is able to capture the structural acceleration of customer demand for digital transformation.
OPERATIONS BY REGION
All regions of the Group recorded double-digit growth at constant currencies in the first quarter of 2022, reflecting the strengthening of the underlying organic dynamics compared to the fourth quarter of 2021, observed in almost all regions.
the UK and Ireland The region (12% of Group revenue in Q1 2022) again had a particularly robust quarter with revenue growth of +21.3% at constant exchange rates, driven mainly by the Public Sector and consumer goods.
the North America (29% of Group revenue) and The rest of Europe (30% of Group revenue) increased at constant exchange rates by +16.8% and +16.0% respectively. These regions benefited in particular from stronger growth momentum in Financial Services.
France (20% of Group revenue) posted revenue growth of +11.1% at constant exchange rates, with sustained momentum in the Industry and Consumer Goods sectors.
Finally, the income of Asia-Pacific and Latin America region (9% of Group revenue) grew strongly, by +42.6% at constant exchange rates, with the Group’s acquisitions in the region adding to strong organic growth.
This regional momentum has been fueled by strong industry trends that remain relatively consistent globally. All sectors posted improving growth rates in Q4 2021, in particular the financial services sector, as well as the energy and utilities sector which returned to growth after several quarters of slight contraction.
OPERATIONS BY BUSINESS
All of the Group’s businesses also accelerated, with annual growth rates in Q1 being higher than those in Q4.
Strategy & Transformation (8% of Group revenue in Q1 2022) and Apps and technology (63% of Group revenue and Capgemini’s core business) services continue to benefit from the widespread demand for digital transformation, posting growth at constant exchange rates of +32.1% and +20.4 respectively %.
Operations & Engineering total income* (29% of Group revenue) increased by +12.7% at constant exchange rates. This performance largely reflects strong growth in Engineering services. Infrastructure and Cloud services and Business Services continue to benefit from their strong underlying momentum observed at the end of 2021.
As of March 31, 2022, the Group’s total workforce stood at 340,700, up +24% year-on-year. Workforce increased by 31% at offshore centers to 198,900 (58% of the total workforce) and by 16% onshore.
Bookings totaled €5,473 million in the first quarter of 2022, up 26% year-on-year at constant currencies. The book-to-bill ratio also improved to 1.06 from 0.98 in Q1 2021.
SITUATION IN UKRAINE AND RUSSIA
From the end of 2021, Capgemini proactively took measures to ensure the safety of its teams and their families in Ukraine, and implemented continuity plans for its clients. The Group continues to closely monitor the development of the conflict and to support its employees.
In Russia, the Group has clearly announced its intention to end its presence – which is very limited in size and involves very few international brands present in the country – while respecting the rights of its employees and in full compliance with the applicable legislation. .
Capgemini’s exposure to Ukraine and Russia combined is very limited with significantly less than 1% of its revenue and less than 1% of its workforce. At this stage, the Group has not identified any impact of this conflict on customer demand.
In accordance with its policy of capital allocation and active management of share capital, the Group carried out share buybacks in the first quarter for a total amount of 287 million euros.
As announced last February, the Group’s financial objectives for 2022 are:
- Revenue growth of +8% to +10% at constant exchange rates;
- Operating margin from 12.9% to 13.1%;
- Organic free cash flow above 1,700 million euros.
The inorganic contribution to growth is expected to be 1 point at the lower end of the target range and 2 points at the upper end.
Aiman Ezzat, Chief Executive Officer, and Carole Ferrand, Chief Financial 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 by webcast at the following address link. A replay will also be available for a period of one year.
All documents relating to this publication will be posted on Capgemini’s investor website at https://investors.capgemini.
General Meeting of May 19, 2022
July 28, 2022 Publication of 2022 half-year results
It is recalled that the dividend payment schedule – the amount of which (€2.40 per share) will be subject to the approval of the General Meeting – is as follows:
June 1, 2022 Ex-dividend date on Euronext Paris
June 3, 2022 Dividend payment