KPMG grows revenues to $2.5 billion despite consulting slowdown

Following record growth in 2021/22, KPMG Australia has cited uncertain economic conditions for a slowdown over the past six months, while still posting revenues of $2.5 billion to be up by 9 percent.

The Australian branch of professional services firm KPMG has brought in $2.5 billion in revenues for its 2023 financial year at a shade under double-digit growth, despite a reported slowdown in the second half due to the constraints of the current business climate.

The figures include a $33 million contribution from the firm’s expanding Fiji and PNG partnerships, but overall represent a 7-point dip in growth on last year’s bumper rate of 16 percent.

“Given the challenging economic environment, I’m pleased to report a solid financial result, reflecting the dedication of our talented people and partners,” said KPMG Australia CEO Andrew Yates. “The environment reminds us that we need to double down on core priorities – delivering high-quality work, providing a great people experience, generating returns responsibly, and continuing to grow at a healthy rate to allow us to invest for the future.”

Across the firm’s four primary service lines – which have recently been rejigged – its Deals, Tax & Legal and Audit, Assurance & Risk Consulting divisions saw the most notable declines, the former down by 2 percent and the latter’s growth dropping from 13 to 4 percent. On the flip-side, Enterprise and Infrastructure, Assets & Places were again both up by over 20 percent, while Management Consulting recorded 12 percent growth to $745 million.

The firm described its outlook for the coming twelve months as “cautious but optimistic”, and pointed to several recent capabilities and bricks n’ mortar investments, including the launch of new offices in Geelong, Parramatta, and Nadi and the acquisitions of Acton and Sap specialist Think180. KPMG also noted the appointment of its first Head of Metaverse Futures, and the development and public release of its generative AI tool Kymchat.

Despite cutting an estimated 200 consulting jobs earlier in the year, the firm last year brought in a record number of graduates (877) to maintain an Australian headcount in excess of 10,000, while also adding almost a hundred new partners to push its total tally up to 713 (a net-gain of 40). Of that figure, a tick over 35 percent are now women, up from 33.5 percent last year as the firm creeps toward its target of 40 percent female partners by 2025.

Given the current raft of scandals engulfing the Australian Big Four, Yates also took the opportunity to highlight the firm’s efforts toward increased transparency; “The spotlight on our profession during the year has heightened community awareness and raised expectations on integrity, confidentiality and trust. It is crucial that we regularly review our operations to ensure they are aligned with the standards expected by the Australian community.”