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The big four firm posted a 9.4 per cent annual revenue increase for the 2021 financial year, which saw improved profitability following a year negatively impacted by the pandemic.
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KPMG books $1.9bn revenue in FY21
06 August 2021
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KPMG on Wednesday released its 2021 annual results which saw the firm record $1.9 billion in revenue, up by 9.4 per cent on the year before, and a 19 per cent increase in profitability.
Partner profits were up as well, 17 per cent higher than they were last year, even after the firm offered “thank you” payments to staff after they’d suffered a pandemic-induced salary reduction and increased bonus pools.
KPMG CEO Andrew Yates said the year’s results are remarkably strong, considering the lasting economic and human impacts of the coronavirus pandemic.
“This allows us to further invest in our people as we seek to sustain and grow our business,” Mr Yates said. “It’s a testament to our decision to focus on delivering for clients despite all the challenges of the past 12 months.
“The pandemic continued to shape activity in the wider economy, but our people have embraced agile working to maintain consistently high levels of service.
“I’m proud of the resilience demonstrated by our people and partners in ensuring we retained the high levels of commitment in supporting clients.”
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Mr Yates said the firm benefited from improved business conditions seen across all industries in the second half of last year.
“In the second half of the year, we benefited from a significant pickup in business confidence across the Australian economy and, fortunately, we were well positioned to capitalise on the increased activity in the market,” he said.
“Despite lockdowns still occurring in some parts of the country, we are seeing much more confidence from clients than a year ago, and I share that optimism.”
The firm’s management consulting business brought in the most revenue across the firm, contributing $629 million to its total, a 12.5 per cent increase on last year’s results, driven largely by its infrastructure, government and healthcare portfolio.
KPMG’s audit, assurance and risk consulting business brought in $590 million, a 6.5 per cent increase on last year. The firm said the unit’s growth is largely attributed to increased demand in strategy and technology services as well as significant growth in its remediation business.
Meanwhile, the firm’s deals, tax and legal business brought in $449 million, a 0.9 of a percentage point drop on the revenue recorded by the unit last year. KPMG’s enterprise business, similarly, saw growth of just 0.8 of a percentage point year on year, bringing in $243 million.
Off the back of the firm’s results, Mr Yates announced a trio of new workplace initiatives, too, in a bid to attract industry-leading talent amid what has been described as a war for talent in the accounting and professional services industries.
Among them is the establishment of a new firm-wide People Advisory Board which will aim to ensure staff concerns are heard by the Board and National Executive Committees.
Mr Yates also announced a firm-wide review of KPMG’s reward strategy and pay policy, which he hopes will ensure “greater flexibility, adaptive to individual’s needs and career stages and the agility to respond to market forces”.
The review will see a “total rewards” approach adopted by the firm that offers staff both financial and non-financial rewards, like extending parental leave to 26 weeks, and introducing cultural leave and floating public holidays, as other big four firms have recently rolled out.
Mr Yates also told staff that they would reap the rewards of the firm’s 2021 success, personally, as bonus pools are doubled above budgeted levels and investments are made in learning.
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