Capgemini closes 2021 with good results

Over the past year as a whole, IT services company Capgemini generated revenue of €18.16bn, up 14.6% on current basis for an operating margin rate of 12.9% and a group share in the net result of 1,160 million euros.

Strong growth in 2021 for Capgemini. The French number 1 in digital services closed its fiscal year at the end of December with results that exceeded the objectives that had already been set in October. The board of directors of Capgemini SE reviewed the accounts yesterday, chaired by Paul Hermelin. The group’s turnover in the year amounted to 18,160 million euros, with an increase of 14.6% in the year (15.1% at constant exchange rates), in a context of economic recovery and acceleration of the digital transformation of large companies and organizations. At this point, the ESN highlights the role of the portfolio of innovative offers that it has developed. Services related to digital and the cloud, 10% more, weigh around 65% of Capgemini’s activity.

Net profit attributed to the group increased by 21% to €1,157 million and earnings per share (undiluted) by 20% to €6.87. The group’s CEO, Aiman ​​Ezzat, describes the group’s performance as “remarkable in terms of growth, profitability and cash generation.” The Board of Directors will propose to the General Meeting of May 19, 2022 the payment of a dividend of €2.4 per share.

Organic growth of 10.2% in 2021

If part of the increase in turnover comes from the integration with Altran and the business synergies thus achieved, Capgemini also posted good organic growth of 10.2% compared to last year. The net impact of acquisitions on growth is 4.9 points. ESN’s operating margin rate was 12.9%, up one point in a year, representing an increase of 25% to €2.34bn. This operating margin rate is also higher than the 12.3% achieved in 2019, before the pandemic. It is the result of an improvement in the gross margin, the synergies generated with Altran and a drop in certain operating expenses in the context of the pandemic, the company explains. Finally, organic free cash flow increased by €754 million compared to 2020, to €1,870 million.

The different businesses of the group registered double-digit growth in the year: 27% in Strategy and Transformation (+26% in the 4th quarter), 13.1% in Applications and Technology (16% in the 4th quarter) and 18.5 % in Operations and Engineering (6.8 in the 4th quarter).

3,800 million euros of turnover in France during the year

In France, sales amounted to 3.8 billion euros during the year, 10.3% more. It represents 21% of the total billing. In the fourth quarter, it only increased by 4.3% in France. In the United States, annual sales amounted to €5.2 billion (+8.5% based on published data, 12% at constant exchange rates) and in the Channel (UK and Ireland) to €2.1 billion (+22%). ). In the rest of Europe it increased by 18.4% to 5,560 million euros. Finally, in Asia-Pacific and Latin America, it rose 26.2% to 1.4 billion euros. Globally, during the last quarter, growth was 12.5% ​​at constant exchange rates and 13.2% in organic terms. As of December 31, 2021, Capgemini employed 324,700 people worldwide, 20% more than the previous year. Offshore teams represent 58% of the total workforce.

Capgemini’s 2022 targets call for revenue growth at constant exchange rates between +8 and +10%, operating margin between 12.9% and 13.1% and organic free cash flow generation of over 1,700 millions of euros.

Dennis Alvarado

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