Company: Capgemini
Key Points:
- Revenue Forecast: Capgemini has revised its 2024 revenue forecast, expecting an organic sales decline of 0.5% to 1.5%, a shift from the previously anticipated 0-3% increase.
- Shares: The announcement caused Capgemini’s shares to fall 9.4% to the bottom of the CAC40 index.
Sector Issues:
- Automotive and Aerospace: The downturn in these sectors, coupled with a slower recovery in financial services, is impacting Capgemini’s growth.
- Supply Chain Challenges: Problems in the aerospace sector are seen as a short-term issue affecting growth.
Regional Performance:
- North America: Revenue fell 3.7% in Q2, an improvement from a 7.1% drop in Q1. North America accounts for 28% of Capgemini’s revenue.
- Total Headcount: As of June, Capgemini employed 336,900 people, a 4% decrease from a year earlier, marking the first decline in hiring since 2009.
Financial Results:
- H1 Revenue: Reported at 11.14 billion euros ($12.09 billion), a 2.5% year-on-year decrease.
- Operating Margin & Free Cash Flow: The company confirmed its targets for these metrics for 2024.
CEO’s Statement:
- Aiman Ezzat: Noted that the recovery in the second half of the year will be hindered by current sector challenges but is optimistic about overcoming short-term growth issues.
