PwC Achieves Revenue Growth of $50 Billion, Anticipates Further Growth

PwC firms around the world achieved gross revenues of $50.3 billion, representing an increase of 13.4 percent in local currencies and 11.4 percent in U.S. dollars for the 12-month period ending June 30, 2022. As stated in the announcement, revenues grew strongly throughout the year, following a recovery in the last quarter of the 2021 financial year as the impact of the COVID-19 pandemic diminished.

– In a year of rapid change and numerous global challenges, our talented people leveraged their broad and diverse range of capabilities to support our clients and stakeholders and make a positive contribution to society. The results we achieved in the 2022 financial year are a direct result of our strategy, called New Formula, which we launched in June 2021. Its impact is evident in our financial performance. For the first time, PwC firms around the world achieved gross annual revenues exceeding $50 billion. During a year that was difficult for the global economy, we achieved growth across all parts of the business while also repositioning our portfolio, including 17 acquisitions and the sale of our global mobility and immigration services business – said Bob Moritz, PwC’s Global Chairman.

– I am proud that the results we achieved last financial year at PwC Croatia follow the global growth trend. Although last year was challenging for us, as well as for the entire PwC network, with multiple external factors affecting our business, we achieved revenue growth of nearly 19 percent. Our people create value for our clients every day, supported by our global strategy and contributing to our community. We are fully focused on building trust and enhancing the competencies of our employees to ensure the lasting quality of the services we provide to our clients. We are also proud of our corporate social responsibility activities, through which we strive to address important societal issues together with others – said John Gašparac, Managing Partner for PwC Croatia.

Good Results Worldwide

The growth figures for the entire 2022 financial year reflect increased activity as the COVID-19 pandemic waned and as PwC firms addressed challenges arising from geopolitical conflicts, including the decision to cease operations in Russia.

Revenues on both American continents showed strong growth of 16 percent, following a period of stagnation in the 2021 financial year. Revenue in the U.S. increased by 17 percent. Revenue growth in South and Central America was highest in Brazil, which reported an increase of 21 percent.

Revenues in the Asia-Pacific region grew by 14 percent, with strong results in South Korea, which recorded a revenue increase of 23 percent compared to last year, India, which recorded growth of 21 percent, China, which recorded growth of 13 percent, and Australia, which reported growth of 17 percent.

Revenues in Europe, the Middle East, and Africa (EMEA) increased by 10 percent. Combined revenues in the UK and the Middle East grew by 12 percent, and in Germany, they increased by 14 percent.

Growth Reflected Across All Business Segments

Revenues from PwC’s audit business increased by 7.6 percent to $18 billion (in the 2021 financial year: $17.1 billion). Audit remains the cornerstone of the brand and a key driver of growth in the audit and accounting advisory services business segment. PwC’s audit business continued to grow over the past year while navigating complex market dynamics such as auditor rotation, regulation, and increased competition. They noted an increased demand for auditing a range of non-financial information, such as ESG-related disclosures, as companies seek to build trust in new areas.

Revenues from consulting services grew by 23.5 percent to $20.7 billion (in the 2021 financial year: $17 billion). This growth was driven by strong demand for business transformation through technology, both at the enterprise level and within specific business functions such as finance, administration, and human resources. This included assisting many clients in migrating to cloud environments. Demand for sustainable and tax-efficient supply chain transformation was high, given the widespread disruptions.

Regarding tax and legal advisory services, revenues here increased by 6.8 percent to $11.6 billion (in the 2021 financial year: $11 billion). Due to changes in the tax environment, companies continue to face challenges in meeting their reporting obligations, which drives demand for integrated compliance services and business solutions. The results for the current year included only 10 months of operations from the global mobility and immigration services segment. Its sale reduced the comparative annual revenue growth to 8.7 percent. At PwC, they expect accelerated growth in the future as this transaction has already enabled greater investments and prioritization of the capabilities to be built in their TLS business and broader network.

Economic Forecasts

Their economists expect the remainder of 2022 and 2023 to be challenging for the global economy. They forecast global real GDP growth of around 3 percent for the entire 2022 year at market exchange rates, with a slowdown in growth in 2023 to just over 2 percent, although significant uncertainty remains.

However, challenging economic conditions are prompting their clients to confront challenges and think about new ways to build trust with their stakeholders. PwC’s results in the first two months of the 2023 financial year remain very strong across all business segments with a growing number of opportunities.