Accenture PLC, a global leader in professional services, has released its annual report for fiscal 2024, showcasing its commitment to providing a wide range of solutions across Strategy & Consulting, Technology, Operations, Industry X, and Song. Serving clients in North America, EMEA (Europe, Middle East, and Africa), and Growth Markets (Asia Pacific and Latin America), Accenture continues to navigate a complex economic landscape while delivering value to its stakeholders.

2. Financial Highlights

Accenture's financial performance in 2024 reflects a cautious yet positive growth trajectory. The key highlights from the fiscal year include:

Revenues: $64.9 billion, representing a 1% increase in U.S. dollars and a 2% increase in local currency compared to fiscal 2023.

New Bookings: $81.2 billion, up 13% in U.S. dollars and 14% in local currency.

Operating Margin: Improved to 14.8% from 13.7% in 2023.

Earnings Per Share: Diluted EPS rose to $11.44, a 6% increase over the previous year's $10.77.

Accenture's ability to grow its revenues, despite facing economic and geopolitical uncertainties, is commendable. The company’s strategic focus on innovative solutions has allowed it to maintain a resilient position in the market.

Revenue by Products or Services in 2024

3. Revenue Breakdown

Accenture's revenue is categorized into segments and products or services, providing a clearer picture of its operational performance:

Revenue by Segments

North America: $30.74 billion (1.47% growth from 2023)

EMEA: $22.81 billion (2.36% growth)

Growth Markets: $11.33 billion (-1.61% decline)

This segmentation illustrates the robust performance in North America and EMEA, while Growth Markets faced challenges, particularly in consulting services.

Revenue by Segments in 2024

Revenue by Products or Services

Managed Services: $31.70 billion (3.94% growth)

Consulting Revenue: $33.19 billion (-1.24% decline)

The growth in Managed Services reflects Accenture's strategic pivot towards more sustainable and recurring revenue streams, while the decline in Consulting Revenue may be attributed to reduced client spending amid economic uncertainty.

4. Operating Performance

Accenture’s operating expenses for fiscal 2024 slightly decreased, representing 85.2% of revenues compared to 86.3% in the previous year. This decrease highlights effective cost management and operational efficiency. Key metrics include:

Operating Income: $9.59 billion, up from $8.80 billion in 2023.

Total Expenses: $55.30 billion, consistent with revenue growth while improving margins.

5. Geographic Market Insights

North America

Operating income increased due to revenue growth, lower business optimization costs, and reduced labor costs. However, profitability in consulting contracts showed declining trends, indicating the need for strategic adjustments in this segment.

EMEA

The positive impact of foreign currency exchange rates contributed to an increase in operating income, despite softening consulting revenues in local currency.

Growth Markets

This segment saw a decrease in operating income due to lower contract profitability and adverse currency impacts, particularly affecting U.S. dollar revenues.

6. Shareholder Returns

Accenture returned a significant $7.8 billion to shareholders, comprising share repurchases of $4.5 billion and dividends of $3.2 billion. The company’s ongoing commitment to shareholder value is evident in its robust capital allocation strategy.

7. Legal Proceedings and Challenges

Accenture is currently involved in various legal matters, including a putative class action lawsuit and an investigation by the U.S. Department of Justice. Management remains optimistic that these issues will not materially affect the company’s financial condition.

8. Conclusion

Accenture PLC’s fiscal 2024 results reflect resilience amid a challenging economic environment. With a strategic focus on innovation and operational efficiency, the company is well-positioned to continue delivering value to its clients and stakeholders. As it navigates the complexities of the global market, Accenture's commitment to sustainable growth and shareholder returns will remain paramount in the coming fiscal year.

Income Statement of Accenture PLC

	Oct 2023	Oct 2024
Net Income	6.87B	7.26B
Net Income to Non-controlling Interest	131.9M	154.4M
Profit	7.00B	7.41B
Net Income Continuing	7.00B	7.41B
Income Tax Expense	2.13B	2.28B
Pretax Income	9.13B	9.69B
Non-operating Income	329.4M	103.4M
Operating Income	8.80B	9.59B
Revenue	64.11B	64.89B
Costs and Expenses	55.30B	55.30B
Cost of Revenue	43.38B	43.73B
Operating Expenses	11.92B	11.56B
Restructuring Charge	1.06B	438.4M
Selling, General & Administrative	10.85B	11.12B

Balance Sheet of Accenture PLC

	Oct 2023	Oct 2024
Total Assets	51.24B	55.93B
Total Current Assets	23.38B	20.85B
Cash and Equivalents	9.04B	5.00B
Short-term Investments	4.57M	5.39M
Accounts Receivable	12.22B	13.66B
Other Current Assets	2.10B	2.18B
Total Non-current Assets	27.86B	35.07B
Intangible Assets	15.57B	24.02B
Long-term Investments	197.4M	334.6M
Non-current Deferred Tax Assets	4.15B	4.14B
Net PP&E	1.53B	1.52B
Lease Assets	2.63B	2.75B
Other Non-current Assets	3.77B	2.28B
Total Liabilities and Equity	51.24B	55.93B
Total Liabilities	24.78B	26.76B
Total Current Liabilities	18.00B	18.97B
Accounts Payable and Accrued Liabilities	10.71B	10.51B
Current Debt	104.8M	946.2M
Current Deferred Revenue	4.90B	5.17B
Other Current Liabilities	2.27B	2.34B
Total Non-current Liabilities	6.77B	7.78B
Long-term Debt	43.09M	78.62M
Non-current Accounts Payable and Accrued Liabilities	1.31B	1.51B
Non-current Deferred Revenue	653.9M	641.0M
Non-current Deferred Tax Liabilities	395.2M	428.8M
Other Non-current Liabilities	4.37B	5.12B
Total Equity and Non-controlling Interests	26.45B	29.16B
Total Equity	25.69B	28.28B
Non-controlling Interests	765.7M	879.6M

Cash Flow Statement of Accenture PLC

	Oct 2023	Oct 2024
Net Change in Cash	1.15B	-4.04B
Effect of Exchange Rate Changes	-101.2M	-46.26M
Net Cash from Operating Activities	9.52B	9.13B
Adjustment to Operating Profit	2.73B	1.85B
Net Cash from Investing Activities	-2.62B	-7.06B
Business & Interest in Affiliates	2.10B	6.55B
Productive Assets	528.1M	516.5M
Other Investing Activities	12.17M	8.67M
Net Cash from Financing Activities	-5.64B	-6.06B
Debt	93.25M	827.7M
Dividends	2.82B	3.24B
Equity Issuance/Repurchase	-2.82B	-3.10B
Other Financing Activities	-81.85M	-543.3M

Original filing: sec.gov