CAPGEMINI records excellent results in 2020

  •   19/02/2021 - 09h46
  •   DEHOUI Lionel

All is well with Capgemini. According to figures published at the beginning of 2021, the company has made progress over the past year. This reality leads the directors to look at new ambitions for the future. Dividends will also be distributed to shareholders.

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CAPGEMINI records excellent results in 2020
Image copyright: Claudio Lobos - Flickr

Sales on the rise

Capgemini's revenue is on the rise despite the global health crisis. Its turnover now stands at €15.848 billion, which represents a real breakthrough for the company. The increase is 12.2%, i.e. a growth of 13.7% at a rising exchange rate (within the desired range of +12.5% to +14%).

Indeed, the group's good performance made itself felt as early as the third quarter of 2020 and continued into the fourth quarter of the same year. Capgemini's main sectors and regions grew at constant exchange rates (+20.8%) rather than on an organic basis (-2.4%). At the same time, organic cash flow reached €1.119 billion. It exceeds the €900 million forecast for 2020.

 

Dividends redistributed to shareholders

Capgemini is a global leader in consulting, technology services and digital transformation. After presenting its balance sheet, the figures announced will delight shareholders. They will once again be able to benefit from dividends, following the Group's spectacular growth in a year marked by a bloody health and economic crisis.

To this end, the Board of Directors will propose a dividend of 1.95 euro per share to the Annual General Meeting scheduled for 20 May. In line with Group policy, the net income rate would be 35%.

According to company figures, earnings per share (undiluted) rose by 11% to 5.71 euros, while normalized earnings per share rose by 14% to 7.28 euros. Excluding the transitional impact of the US tax reform, normalized earnings per share were up 7% to Euro 7.23.

 

The Group is aiming further for 2021

With the advent of the crisis, the world has taken a decisive and uncertain turn. However, the ongoing coronavirus immunization programmes are expected to help bring things back to order.

The Capgemini Group, after a successful year, hopes to achieve growth at constant exchange rates of between +7% and 9% in the near future. As for the operating margin, it should be between 12.2% and 12.4%. These various figures bring it back to its 2019 balance sheet. As a result, the company would like to make a fresh start

In terms of organic free cash flow generation, the result it is now pursuing is to exceed the 1.3 billion euro mark. As for the contribution of changes in the scope of growth, it is set at 4.5 points.

If the objectives for the new year 2021 are achieved, the Capgemini Group will be in excellent financial health. This is despite the difficulties encountered by companies in the sector.