The operating margin* increased by +8% in value to €1,879 million, representing 11.9% of revenues. The contraction in the operating margin rate year-on-year was therefore limited to 40 bps, a better than expected performance compared to the Group target contraction of 60 to 90 bps. This shows how the Group has substantially improved the resilience of its operating model since the 2008-2009 crisis.
Revenues in North America grew by +7.9% at constant exchange rates. This increase was driven by Altran’s contribution to revenues, mainly visible in the TMT sector. Financial Services enjoyed strong momentum at the year end and reported organic growth for the full year. The operating margin rate improved further to 14.8%, compared with 13.9% in 2019.
The United Kingdom and Ireland region reported +6.7% constant currency growth in revenues, supported by Altran’s consolidation (mainly in the Manufacturing and TMT sectors) and robust Public Sector momentum throughout the year on an organic basis. The operating margin increased to 15.5% from 15.2% a year earlier.
France reported revenue growth of +14.2% at constant exchange rates for the period, with the Manufacturing, TMT and Energy & Utilities sectors significantly enhanced by the consolidation of Altran revenues. On a like-for-like basis, the Manufacturing sector was most heavily affected by the activity slowdown in the past year, while the Public Sector maintained robust growth throughout the year. Within the Group, France was the hardest hit by the pandemic, notably due to an unfavorable mix of sectors and business lines. Both revenues at constant scope and operating margin contracted visibly, with the latter declining 3.4 points year-on-year to 8.7%.
The Rest of Europe region grew +23.7% at constant exchange rates, including Altran revenues. Activity remained almost stable in 2020 on an organic basis, supported by the buoyant Public Sector and TMT sector. The region reported a slightly lower operating margin of 11.4%, compared with 11.8% a year earlier.
Finally, momentum remained strong in the Asia-Pacific and Latin America region, with revenues increasing +12.2% at constant exchange rates. This performance is particularly noteworthy as Altran’s consolidation had a more limited impact in this region. Organic growth was again sustained, boosted particularly by Financial Services and, to a lesser extent, the Services and TMT sectors. The operating margin rate increased significantly to 13.0%, from 11.2% in 2019.
Source: investors.capgemini.com
