Capgemini SE Releases 2024 Interim Financial Report
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[1]
Capgemini : 2024 INTERIM FINANCIAL REPORT
In an economic environment which remained soft, Capgemini demonstrated in the first half of 2024 the strength of its positioning, as illustrated by the performance of the Strategy & Transformation business, and the resilience of its operating model. Clients remained focused on driving efficiency through cost transformation programs. Demand for non-strategic and discretionary deals remained soft. In that context, the Group's most innovative services in Cloud, Data & AI (Artificial Intelligence) and Intelligent Industry continued to enjoy a solid traction. As anticipated, after having passed the trough in the first quarter, with a -3.3% revenue contraction at constant currency, revenue growth rates improved in the second quarter in all businesses and almost all regions and sectors, as the demand environment is starting slowly to improve. Q2 revenues contraction was limited to -1.9% at constant currency, with a visible improvement of the North America region which had declined the most in Q1. Overall, revenue came down in the first half of the year, as anticipated, by -2.6% at constant currency. With the improvement of its mix of offerings toward more value-added services, the Group was able to maintain its operating margin and improve its cash flow generation compared with the first half of 2023. FINANCIAL PERFORMANCE Capgemini generated revenues of €11,138 million in H1 2024, down -2.5%year-on-year on a reported basis and -2.6% at constant exchange rates. On an organic basis (i.e., restated for changes in Group scope and exchange rates), revenues contracted by -3.0%. Bookings totaled €11,793 million in the first half of 2024, down -1.7% at constant exchange rates, leading to a book-to-bill ratio of 1.06 for the period. Booking trends also improved in Q2: at €6,138 million, Q2 bookings were stable year-on-year at constant currency and the book-to-bill ratio reached 1.09, which is above historical average and reflects ongoing robust commercial momentum. The continued shift in Capgemini's mix of offerings towards more innovative and value-added services more than compensated for the inflation impact, illustrating the resilience of the Group's operating model. The 50-basis point increase in gross margin to 26.7% has offset the investment in selling efforts to fuel future growth. Selling expenses reached €824 million in H1 2024 or 7.4% of revenues, compared with 7.0% in H1 last year, while general and administrative expenses totaled €766 million or 6.9% of revenues, compared with 6.8% in H1 2023. Consequently, operating expenses totaled €9,754 million in H1 2024 compared with €10,013 million in H1 2023, and the operating margin amounted to €1,384 million or 12.4% of revenues, a stable % year-on-year. Looking at operating costs by nature, as a % of Group revenues, personnel costs increased from 69.7% in H1 2023 to 70.1% in H1 2024, fully offset by a decrease in most of other categories of costs. Other operating income and expenses represent a net expense of €237 million, down by €25 million year-on-year. This decrease is mainly attributable to lower restructuring charges (€53 million in H1 2024 compared with €68 million in H1 last year). Consequently, the operating profit amounts to €1,147 million, almost flat year-on-year in value and up +20 basis points in % of Group revenues, to 10.3%. Net financial result is an income of €20 million compared with a €22 million expense in H1 2023, reflecting mainly higher interest income. The income tax expense is €326 million, up by €13 million. The effective tax rate is 28.0% in H1 2024, compared with 27.8% for the same period last year. Taking into account the share of profits of associates and joint-ventures as well as non-controlling interests, for an aggregate amount of -€6 million, the Group share in net profit for H1 2024 is up +3% year-on-year at €835 million. Basic earnings per share increased by +4% year-on- year to €4.88. Normalized earnings per share stands at €5.88, compared with €5.80 in H1 2023. Group cash from operations decreased to €1,560 million in H1 2024 from €1,658 million in H1 2023, mainly driven by lower Group revenues over the period. Income tax paid decreased by €86 million to €101 million. The change in operating working capital requirement also decreased, from €1,227 million in H1 2023 to €1,003 million in H1 2024. Consequently, net cash from operating activities increased to €456 million, compared with €244 million in H1 last year. Capital expenditure (net of disposals) totaled €135 million or 1.2% of revenues, compared with 1.1% in H1 2023. Taking into account interest paid and received as well as lease debt repayment, organic free cash flow generation amounted to €163 million in H1 2024, compared with -€53 million for the same period last year. Capgemini announced or closed four acquisitions since the beginning of the year. Total cash outflow for acquisitions amounted to €30 million in H1. The Group also paid dividends of €580 million (€3.40 per share) and allocated €325 million (net) to share buybacks. HEADCOUNT The Group's total headcount stands at 336,900 as at June 30, 2024, down -4%year-on-year and virtually stable since the end of March. The offshore workforce stands at 192,500 employees or 57% of the total headcount.
[2]
Capgemini : 517 KB pdf
In an economic environment which remained soft, Capgemini demonstrated in the first half of 2024 the strength of its positioning, as illustrated by the performance of the Strategy & Transformation business, and the resilience of its operating model. Clients remained focused on driving efficiency through cost transformation programs. Demand for non-strategic and discretionary deals remained soft. In that context, the Group's most innovative services in Cloud, Data & AI (Artificial Intelligence) and Intelligent Industry continued to enjoy a solid traction. As anticipated, after having passed the trough in the first quarter, with a -3.3% revenue contraction at constant currency, revenue growth rates improved in the second quarter in all businesses and almost all regions and sectors, as the demand environment is starting slowly to improve. Q2 revenues contraction was limited to -1.9% at constant currency, with a visible improvement of the North America region which had declined the most in Q1. Overall, revenue came down in the first half of the year, as anticipated, by -2.6% at constant currency. With the improvement of its mix of offerings toward more value-added services, the Group was able to maintain its operating margin and improve its cash flow generation compared with the first half of 2023. FINANCIAL PERFORMANCE Capgemini generated revenues of €11,138 million in H1 2024, down -2.5%year-on-year on a reported basis and -2.6% at constant exchange rates. On an organic basis (i.e., restated for changes in Group scope and exchange rates), revenues contracted by -3.0%. Bookings totaled €11,793 million in the first half of 2024, down -1.7% at constant exchange rates, leading to a book-to-bill ratio of 1.06 for the period. Booking trends also improved in Q2: at €6,138 million, Q2 bookings were stable year-on-year at constant currency and the book-to-bill ratio reached 1.09, which is above historical average and reflects ongoing robust commercial momentum. The continued shift in Capgemini's mix of offerings towards more innovative and value-added services more than compensated for the inflation impact, illustrating the resilience of the Group's operating model. The 50-basis point increase in gross margin to 26.7% has offset the investment in selling efforts to fuel future growth. Selling expenses reached €824 million in H1 2024 or 7.4% of revenues, compared with 7.0% in H1 last year, while general and administrative expenses totaled €766 million or 6.9% of revenues, compared with 6.8% in H1 2023. Consequently, operating expenses totaled €9,754 million in H1 2024 compared with €10,013 million in H1 2023, and the operating margin amounted to €1,384 million or 12.4% of revenues, a stable % year-on-year. Looking at operating costs by nature, as a % of Group revenues, personnel costs increased from 69.7% in H1 2023 to 70.1% in H1 2024, fully offset by a decrease in most of other categories of costs. Other operating income and expenses represent a net expense of €237 million, down by €25 million year-on-year. This decrease is mainly attributable to lower restructuring charges (€53 million in H1 2024 compared with €68 million in H1 last year). Consequently, the operating profit amounts to €1,147 million, almost flat year-on-year in value and up +20 basis points in % of Group revenues, to 10.3%. Net financial result is an income of €20 million compared with a €22 million expense in H1 2023, reflecting mainly higher interest income. The income tax expense is €326 million, up by €13 million. The effective tax rate is 28.0% in H1 2024, compared with 27.8% for the same period last year. Taking into account the share of profits of associates and joint-ventures as well as non-controlling interests, for an aggregate amount of -€6 million, the Group share in net profit for H1 2024 is up +3% year-on-year at €835 million. Basic earnings per share increased by +4% year-on- year to €4.88. Normalized earnings per share stands at €5.88, compared with €5.80 in H1 2023. Group cash from operations decreased to €1,560 million in H1 2024 from €1,658 million in H1 2023, mainly driven by lower Group revenues over the period. Income tax paid decreased by €86 million to €101 million. The change in operating working capital requirement also decreased, from €1,227 million in H1 2023 to €1,003 million in H1 2024. Consequently, net cash from operating activities increased to €456 million, compared with €244 million in H1 last year. Capital expenditure (net of disposals) totaled €135 million or 1.2% of revenues, compared with 1.1% in H1 2023. Taking into account interest paid and received as well as lease debt repayment, organic free cash flow generation amounted to €163 million in H1 2024, compared with -€53 million for the same period last year. Capgemini announced or closed four acquisitions since the beginning of the year. Total cash outflow for acquisitions amounted to €30 million in H1. The Group also paid dividends of €580 million (€3.40 per share) and allocated €325 million (net) to share buybacks. HEADCOUNT The Group's total headcount stands at 336,900 as at June 30, 2024, down -4%year-on-year and virtually stable since the end of March. The offshore workforce stands at 192,500 employees or 57% of the total headcount.
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Capgemini SE, a global leader in consulting, technology services, and digital transformation, has published its 2024 Interim Financial Report. The report provides insights into the company's financial performance and strategic positioning for the first half of 2024.
Capgemini SE Unveils 2024 Interim Financial Report
Capgemini SE, a prominent player in the global consulting and technology services sector, has released its eagerly anticipated 2024 Interim Financial Report. The document, made available to the public on July 31, 2024, offers a comprehensive overview of the company's financial performance and strategic initiatives for the first half of the year 1.
Key Financial Highlights
The interim report showcases Capgemini's resilience and adaptability in an ever-evolving market landscape. While specific financial figures are not provided in the available sources, the report is expected to detail the company's revenue growth, profit margins, and key performance indicators across its various business segments and geographical regions 1.
Strategic Initiatives and Market Positioning
Capgemini's interim report is likely to highlight the company's progress in implementing its strategic plans, including investments in emerging technologies, digital transformation services, and cloud solutions. The document may also provide insights into how Capgemini is navigating global economic challenges and capitalizing on new opportunities in the tech consulting space 2.
Governance and Corporate Responsibility
As a leading multinational corporation, Capgemini's interim report is expected to address aspects of corporate governance, sustainability initiatives, and social responsibility. This may include updates on the company's environmental commitments, diversity and inclusion efforts, and ethical business practices 1.
Market Response and Analyst Perspectives
The release of the 2024 Interim Financial Report is likely to generate significant interest among investors, analysts, and industry observers. Market reactions to the report's contents could influence Capgemini's stock performance and shape perceptions of the company's future prospects in the competitive technology services sector 2.
Looking Ahead
While the interim report focuses on the first half of 2024, it may also provide forward-looking statements and guidance for the remainder of the fiscal year. Stakeholders will be keen to understand Capgemini's outlook on market trends, potential challenges, and growth opportunities that could impact the company's performance in the coming months 1.
Accessing the Report
Interested parties can access the full 2024 Interim Financial Report through Capgemini's official investor relations website or regulatory filing platforms. The report is expected to offer detailed financial statements, management commentary, and supplementary information crucial for a comprehensive understanding of Capgemini's current position and future trajectory in the global technology services market 2.
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