Capgemini Hikes Dividend After Boost in Profit

By Mauro Orru

Capgemini is raising its dividend after posting higher profit and revenue for last year.

The French consulting and technology group said Wednesday that annual net profit had increased 7% to 1.66 billion euros ($1.78 billion). Operating profit rose to EUR2.99 billion from EUR2.87 billion in 2022, generating a 13.3% margin.

The company said it would recommend a dividend of EUR3.40 per share at its May 16 shareholders' meeting, above the EUR3.25 per share it proposed last year. The group also said it would propose renewing Aiman Ezzat's term of office as director for four years and confirm him as chief executive after the meeting.

Capgemini posted revenue of EUR22.52 billion for the year, up 4.4% at constant currency. In the fourth quarter, the group recorded a 0.2% constant-currency contraction in sales to EUR5.62 billion.

Organic free cash flow in 2023 climbed to EUR1.96 billion from EUR1.85 billion.

The group had targeted annual constant-currency revenue growth of 4% to 7%, an operating margin between 13% and 13.2% and organic free cash flow of roughly EUR1.8 billion.

For 2024, Capgemini expects constant-currency revenue growth of up to 3%, an operating margin between 13.3% and 13.6% and organic free cash flow of about EUR1.9 billion.

Write to Mauro Orru at mauro.orru@wsj.com

(END) Dow Jones Newswires

February 14, 2024 01:36 ET (06:36 GMT)

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