Fiscal 2022 Universal Registration Document

Download the table

Organic revenue growth was strong across all geographies, respectively +14.4% in Europe, USA and Asia, and +13.8% in Latin America, accelerating quarter by quarter.

This performance was due to strong net new business in all key markets as well as sustained increase in face values. In addition, financial revenues were also up strongly thanks to increasing interest rates.

Download the table

The increase in Operating revenues of +12.4% reflects strong growth in issue volumes due to face value increases and significant net new business in most countries and in most services, except Public Benefits.

Financial revenues were up +43.7% due to the progressive effect of the increase in interest rates.

3.2.4 Underlying operating profit

Fiscal 2022 Underlying operating profit was 1,059 million euros, up +83.3%, or +73.5% excluding the currency effect. The Underlying operating profit margin reached 5.0%, up +170 bps. The currency mix effect was negligible.

Download the table

The traditional seasonal gap between the first and second half Underlying operating profit margin, particularly in Education, has now reasserted itself, with a margin of 4.8% in the Second half of Fiscal 2022, versus 5.2% in the First half.

The recovery in the margin is due to the flow-through from the progressive post-Covid recovery in revenues combined with continued tight cost control, contract management to pass-through inflation in the On-site Services activities, including price increases and mitigation actions, more active portfolio management, and the contribution from the GET efficiency program.

On-site Services Underlying operating profit was up +90.4%, or+79.4% excluding the positive impact of currencies. The margin came out at 4.6% up +170 bps or +160 bps excluding currencies, helped by the strong dollar particularly in Healthcare and Education where the weight of North American revenues is the highest. The performance by segment at constant rate sis as follows:

• Business & Administrations Underlying operating profit was multiplied by nearly four times, up +263.7%. As a result, the margin was up +230 bps to 3.5%. This improved performance reflects the flow-through of the significant improvement in the activity levels in Corporate Services and Sports & Leisure, operational efficiency and strong price increases and mitigation to offset inflation;
• in Healthcare & Seniors, the +7.6% increase in Underlying operating profit resulted in a margin of 6.5%, down -10 bps, in a highly inflationary environment, particularly in North America. Pricing has also been strong in this segment, the teams have been very active in rolling out their inflation mitigation actions and the results of the portfolio clean-up of the preceding years is now coming through;
• in Education, Underlying operating profit was up +144.5% and the margin up +250 bps to 5.0% thanks to the flow-through of the revenue recovery, particularly in North America. High inflation and staff shortages have been offset by very significant mitigation efforts on the ground, as well as pricing in North America. Pricing has been more difficult in France where the national inflation index used in the Schools contracts has underperformed our input cost increases.

Benefits & Rewards Services Underlying operating profit was up+33.2%, or +30.5% excluding the positive impact of currencies. The margin increased to 28.6% up +360 bps or +370 bps excluding currencies, helped by the strong acceleration in volumes and, in particular, the financial revenues from quarter to quarter throughout the year. While processing costs have remained stable relative to revenues, all other cost increases have been contained.