KPMG to reset for FY25 after a ‘resilient’ FY24
The big four company has launched a new business plan focused on improving and developing its operations for the 2025 financial year.
KPMG has announced a new impact plan to streamline operations and focus on new priorities around its workforce, clients and innovation after a year of subdued market conditions.
The company has recorded $2.386 billion in revenue this financial year, down 3.9 per cent from last year at $2.484 billion.
KPMG Australia’s 2024 Impact Plan included voluntary disclosures on the company’s public commitments and actions across the categories of governance, people, planet and prosperity.
KPMG Australia CEO Andrew Yates said despite the difficult year, he is proud of the resilience KPMG has shown.
“There have been difficult operating conditions globally as well as in Australia in the past 12 months,” he said.
“Overall, I’m pleased with the strength and resilience of our business and performance across our multi-disciplinary firm.”
Yates said the new business plan will help the company refresh and align its strategies.
“To provide a platform for sustainable growth going forward, we have refreshed our strategy, aligning investment globally, anticipating future client needs and creating an environment for everyone to innovate.”
The Impact Plan report highlighted the company’s economic contributions for 2024, including revenue of $2.386 billion, the employment of 9,602 people including 700 new graduates, 691 partners including 54 new partners and a community impact contribution of $9.78 million.
KPMG reported that enterprise business was the fastest growing, with revenue up by 13 per cent; audit and assurance grew by 9 per cent, and landmark audits Westpac, Dexus and Iluka were “won back.”
Tax grew by 4 per cent and deal advisory and infrastructure was flat year-on-year, while consulting declined by 14 per cent.
Contributions from businesses included audit and assurance at $340 million, consulting at $915 million, deal advisory and infrastructure at $349 million, enterprise at $385 million and tax and legal at $242 million.
With the launch of the new business plan, the company said there will be a stronger focus on AI and technology with the development of the AI platform ‘KymChat.’
Yates said KPMG is focused on improving experiences for clients in line with the evolving market.
“We continued to invest in our business via new technologies and our people through our Eclipse Learning Academy.”
“We have committed more than $80 million to AI and technology platforms in FY25, including the launch of our AI Eclipse Learning Academy to upskill our people and further development of KymChat, our KPMG AI platform.”
The company welcomed a new independent board director as well as an independent adviser to the national board, which experienced a structure review and the establishment of a new governance, regulation and compliance committee.
Its ethical culture program also experienced an improvement in terms of the visibility and engagement it received from employees, according to KPMG.
In terms of people, the report demonstrated limited assurance was obtained over four key metrics for the first time.
The percentage of women in partnership, the percentage of partners identifying as culturally diverse, and the number of Indigenous people hired all saw a slight uptick.
The employee average base salary gender pay gap was also reported to have slightly improved.
In the ‘planet’ sector of the company, KPMG released its first climate risk report and increased its internal price on carbon to aid in pushing decarbonisation to net zero.
KPMG also saw 42 per cent of its people actively participate in climate-related engagements, training or initiatives with the firm.
“Change is here to stay and we are continually adapting and evolving to navigate market conditions. 2024 was a year of consolidation,” Yates said.
