Atos returns to growth as revenues pick up in FY22 results
The services giant has made a recovery following a tough 2022 of profit warnings and slashed forecasts
Atos believes it is on the road to recovery after publishing a top line increase in its full-year 2022 results.
The French group saw revenues climb 4.6 per cent to €11.3bn and 1.3 per cent in constant currency.
While net income came in at a loss earning just over €1bn compared with the €2.9bn from FY21.
Last January Atos was forced to issue its second profit warning in seven months in its preliminary FY2021 financial figures, stating the revised guidance communicated in July 2021 will not be met due to "several significant effects".
The following month the group announced another downward revision of its 2021 financial forecast, admitting its previous predictions issued January 10 2022 could not be met.
"Atos' recovery is well underway thanks to the strong commitment and dedication of our 111,000 employees," declared The company's leadership team including Nourdine Bihmane, Diane Galbe and Philippe Oliva.
"In 2022, the group returned to growth, at 1.3 per cent at constant currency, and achieved all its financial objectives with a clear improvement in all KPIs in the second half of the year.
"In particular, Evidian started to accelerate its profitable growth and Tech Foundations delivered fast and tangible first results on its strategic roadmap, turning profitable three years ahead of plan."
Atos' top dogs self-assuringly said they are embracing 2023 with confidence, with its impending separation being considered a "turning point" in the group's history, which they added is making "significant progress" within only eight months of its announcement.
"Despite an uncertain macroeconomic context, we see a wealth of opportunities ahead of us and are confident in our capacity to continue improving our performance through 2023," the trio said.
"We are laying strong foundations for renewed success, for Atos today and, tomorrow, for both the Evidian and the Tech Foundations perimeters."
How did Atos' soon-to-be spun out businesses fare?
Atos announced plans to separate into two publicly-listed companies in June.
These two business, Evidian and Tech Foundations contributed to its 2022 growth to varying degrees.
H2 became pivotal for Atos as organic growth changed course for the positive, growing 2.3 per cent, with a strong Q4 rise of 4.6 per cent.
Evidian's revenue came in at €5.3bn, up 4.8 per cent at constant currency and two per cent organically driven by the contribution of 2021 acquisitions.
The security arm of Atos was on the receiving end of a minority stake offer from the world's largest aircraft manufacturer Airbus last month.
While Tech Foundations fell 1.6 per cent to €6bn in 2022.
Atos said that following an earlier-than-anticipated stabilisation in Q3, revenue was down 1.2 per cent organically in Q4, against a favourable comparison basis, driven by drastic portfolio rationalisation actions, as Tech Foundations started to tackle underperforming contracts, particularly in the BPO activity, and to wind down its value-added resale business.
2023 outlook
Atos expects organic growth between minus one per cent and plus one per cent, as an acceleration of Evidian's organic growth will be offset by the managed reduction of Tech Foundations' revenue resulting from portfolio reshaping.