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Friday 23 September 2022

A strong Q4 closes out an impressive FY22 for Accenture

LogoIn line with the guidance provided in the company’s Q322 results announcement (see here), constant currency growth of 22.4% yoy generated fourth quarter revenues of £15.4bn at Accenture. This lifted sales for the twelve months ended 31st August to $61.6bn, both up by over a quarter compared to the prior fiscal year and with organic expansion accounting for more than 80% of the improvement.

FY22 also saw Accenture secure record levels of bookings. These hit $72bn and delivered a book-to-bill ratio of 1.2. Operating margin for the period remained largely unchanged yoy at 15.4% as the company continued to invest heavily in acquisitions ($3.4bn), industry solution development ($1.1bn) and training ($1.1bn).

Double-digit top line increases were achieved by all vertical sector, service line and geographic dimensions of Accenture’s business last fiscal. From an industry perspective, the company’s Product unit was the star of the show with turnover up by just shy of a third yoy. Sales of Accenture’s Technology services proved the most robust within the portfolio of offerings rising by 30% and, in terms of regional expansion, Europe led the way growing by 29% over FY21. The UK, Germany, Italy and France were cited as having delivered particularly strong years.

Despite the gathering trading headwinds, Accenture remains upbeat about its prospects for FY23 albeit its pace of expansion is projected to slow. First quarter constant currency revenue is expected to increase by between 10% to 14% yoy with full year sales anticipated to rise in the range of 8% to 11% (organic growth 5.5% to 8.5%). This more cautious view of the upward trajectory for demand mirrors our most recent assessment of the outlook for the  SITS market in this country (see here). We believe that this sector, while not immune to from the worsening state of the economy, will prove more resilient than many other parts of UK plc.

Posted by: Duncan Aitchison at 08:50

Tags: results   systemsintegration  

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