Capgemini Group reported consolidated revenues of €4,552 million in Q3 2021, up 13.6% year-on-year at current exchange rates and 12.9% at constant exchange rates*.
Aiman Ezzat, Chief Executive Officer of the Capgemini Group, said: “The strong growth achieved in Q3 reflects the strengthening of the positive trends of the past few quarters in all sectors and regions.
This momentum confirms that we made the right moves to position the Group as a strategic partner for the digital transformation of large corporations and organizations, leveraging Cloud and Data/AI. Our digital offering portfolio covers the entire value chain from product and services design to customer experience. We continue to accelerate the introduction of new industry-specific offerings in the fast-growing markets of intelligent industry, customer experience and sustainability.
We are able to attract the right talents to fuel our growth, crossing the 300,000 employees mark this quarter and increasing our headcount by nearly 20,000 people.
I am extremely proud of the achievements of our teams across the world and considering these excellent results and the outlook for the coming months, we are raising all our 2021 financial targets.”
Capgemini growth accelerated further in Q3 2021. With Q3 2021 revenues of €4,552 million, constant currency growth was +12.9% year-on-year, exceeding Q2 growth of +12.4%. Organic growth (i.e. adjusted for Group scope and exchange rates) was +13.2% year-on-year, compared with +12.9% in Q2. This performance is all the more remarkable as the comparison base was much higher in Q3.
Digital and Cloud services reported solid double-digit growth in Q3 2021, accounting for more than two-thirds of the Group’s business[1].
For the first nine months of the year, growth reached +14.4% on a reported basis and +16.1% at constant exchange rates, while organic growth stood at +9.1%. This momentum reflects the Group’s excellent positioning and the strength of its portfolio of innovative offerings.
OPERATIONS BY REGION
All Group regions reported double digit organic growth (i.e. at constant scope and exchange rates) in Q3 2021. At constant exchange rates, the strong momentum in France was partially offset by the impact of the Odigo divestiture2. Since the comparison basis is significantly more demanding in Q3 compared to Q2, the underlying growth momentum actually strengthened this quarter.
Sector trends are also very positive and remain consistent across all regions. Virtually all sectors show growth rates in line with those of Q2. Constant currency growth of around 20% was reported in Manufacturing (25% of Group revenues), Consumer Goods (13% of Group revenues) and Services (5% of Group revenues). The Public Sector (14% of Group revenues) and TMT (Telecoms, Media and Technology, 13% of Group revenues) came next with constant currency growth of over 10%, followed by Financial Services (22% of Group revenues) which sustained its robust momentum from previous quarters. Only the Energy and Utilities sector (8% of Group revenue) lagged behind, with a slight contraction in business during the quarter.
OPERATIONS BY BUSINESS
All business lines continued to report strong growth, in line with Q2 trends. Strategy & Transformation services (7% of Group revenues) and Applications & Technology services (62% of Group revenues and Capgemini’s core business) benefited fully from Digital and Cloud demand, reporting growth at constant exchange rates of +27.4% and +16.3%, respectively. Operations & Engineering services (31% of Group revenues) also maintained a solid momentum, reaching double digit after adjusting for the scope effect of the Odigo divestiture. This performance was once again driven by growth in Engineering services of well above 10%.
HEADCOUNT
At September 30, 2021, the Group’s total headcount stood at 309,300, up 16.9% year-on-year, with over 177,000 employees in offshore centers (57% of the total headcount, up 4 points year-on-year).
BOOKINGS
Bookings totaled €4,608 million in Q3 2021, a 15.0% increase at constant exchange rates year-on-year.
OUTLOOK
Considering the performance delivered in the first nine months of the year and the business outlook for Q4, Capgemini is once again raising all its 2021 financial targets:
- Constant currency growth between +14.5% and +15.0%, instead of +12.0% and +13.0% previously;
- Operating margin greater than 12.7%, instead of 12.5% to 12.7%;
- Organic free cash flow above €1,700 million, instead of €1,500 million.
The inorganic contribution to growth is anticipated at c. 5 points (unchanged).
CONFERENCE CALL
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 on October 28, 2021 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 placed online on the Capgemini investor website at https://investors.capgemini.com/en.
PROVISIONAL CALENDAR
February 14, 2022 – FY 2021 results
April 28, 2022 – Q1 2022 revenues
May 19, 2022 – Combined Shareholders’ Meeting
