Capgemini Group reported Q1 2021 revenues of €4,271 million, up 24.2% year-on-year at constant exchange rates.
Aiman Ezzat, Chief Executive Officer of the Capgemini Group, commented: “We delivered an excellent performance in the first quarter of 2021, with a return to organic growth. Growth was stronger than anticipated and activity even surpassed pre-health crisis levels, reflecting not only a more dynamic market but also the accelerated deployment of our strategy. Performance improved across all our geographies and sectors. We are strongly positioned in cloud and data, the main drivers of technology and business transformation in the years to come, which fueled this performance. The first quarter was also marked by a return to large-scale recruitment to meet client demand. In this context, our growth for 2021 should exceed the mid-point of the targeted range.
We recently unveiled the Capgemini Engineering brand which brings together a unique set of cutting-edge capabilities in Engineering and R&D. This perfectly complements the Group’s already well-established portfolio of business offerings and supports our leadership position in Intelligent Industry.
Finally, we were recently named one of the world’s most ethical companies for the ninth year in a row. This is a very meaningful distinction for me because our Group is founded on values that enable us to forge long-lasting relationships with all stakeholders in our ecosystem and pave the way for a sustainable future.
I would also like to reaffirm that our priority remains the health and well-being of our teams. Currently we are closely monitoring the health situation in India and Brazil and continue to provide support to all our employees. ”
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Revenues
(in millions of euros) |
Change | |||
| 2020 | 2021
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Reported | At constant exchange rates* |
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| Q1 | 3,547 | 4,271 | +20.4% | +24.2% | |
Group momentum continued to improve in Q1 2021, with annual growth rates higher than in Q4 2020. With a return to growth at constant scope and exchange rates in Q1, at +1.7%, Group revenues are already up on pre-crisis levels.
Group revenues rose by +20.4% at current exchange rates and +24.2% at constant exchange rates*, with the consolidation of Altran Technologies (“Altran”) effective April 1st, 2020. This momentum also reflects the double-digit growth achieved in Digital and Cloud activities.
OPERATIONS BY REGION
In Q1 2021, annual growth rates at constant exchange rates improved across all Group regions compared to Q4 2020, reflecting stronger underlying organic growth momentum, i.e. at constant scope and exchange rates.
On an organic basis, the North America (28% of Group revenues) and Rest of Europe (31% of Group revenues) regions returned to growth. Growth accelerated in Asia-Pacific and Latin America (7% of Group revenues) and United Kingdom and Ireland (12% of Group revenues), climbing to double figures in the latter region. Finally, France (22% of Group revenues) continued its gradual recovery, although it was still down on Q1 2020.
Momentum improved in all sectors in Q1 2021. In particular, on an organic basis: the Manufacturing sector (25% of Group revenues, including the Life Sciences segment) reported the most significant improvement, with now only a limited year-on-year contraction. The Public sector (14% of Group revenues) maintained its strong performance, once again reporting double-digit growth. The Consumer Goods sector (12% of Group revenues) reported a strong Q1 with a return to solid growth. Finally, the Services sector (5% of Group revenues, including transportation, hotels and catering), which bore the brunt of the crisis, reported a further improvement, with a substantially lower decline than in Q4 2020.
OPERATIONS BY BUSINESS
All of the Group’s businesses reported further sequential improvements in annual growth rates compared to the previous quarter, both at constant exchange rates and organically (that is at constant scope and exchange rates).
All businesses are now posting organic growth in total revenues*, except for Engineering which however clearly improved. On an organic basis, Strategy & Transformation consulting services (7% of Group revenues) and Applications & Technology services (62% of Group revenues and Capgemini’s core business) returned to growth in Q1 2021. Operations & Engineering services (31% of Group revenues) continued their recovery with only a slight decline in activity, boosted by higher growth in cloud infrastructure services.
The +77,6% growth in Operations & Engineering total revenues at constant exchange rates reflects the consolidation of Altran, which mainly delivers Engineering services. The Altran consolidation had a much lesser impact on the other business lines.
HEADCOUNT
As of March 31, 2021, the Group’s total headcount stood at 274,500, up 25.3% year-on-year, with a 21.7% increase in employees in offshore centers to 152,000 (55% of the total headcount and a 1-point increase compared to December 31, 2020).