Another year of strong growth: new medium-term outlook
7am, 15 May 2024 ─ Experian plc, the global data and technology company, today issues its financial report for the year ended 31 March 2024.
Brian Cassin, Chief Executive Officer, commented:
“FY24 growth was at the top end of our expectations. Total revenue growth from ongoing activities was 8% at actual exchange rates and 7% at constant exchange rates. Organic revenue growth was 6%, we raised margins and delivered US$1.9bn of operating cashflow.
“For FY25, we expect further strategic progress and expect to deliver organic revenue growth in the range of 6-8%. We also expect good margin expansion, in the range of 30-50 basis points, at constant currency.
“Looking further ahead, we expect the combination of economic recovery, continued new product and vertical market expansion as well as productivity gains from technology cloud transition to elevate our financial performance. We anticipate strong organic revenue growth, good margin accretion and reduced levels of capital expenditure.”
| Benchmark and Statutory financial highlights | |||||
| 2024 US$m | 2023 US$m | Actual rates growth % | Constant rates growth % | Organic growth %2 | |
| Benchmark¹ | |||||
| Revenue – ongoing activities3 | 7,056 | 6,548 | 8 | 7 | 6 |
| Benchmark EBIT – ongoing activities3,4 | 1,944 | 1,798 | 8 | 7 | n/a |
| Total Benchmark EBIT | 1,928 | 1,794 | 7 | 7 | n/a |
| Benchmark EPS | USc145.5 | USc135.1 | 8 | 7 | n/a |
| Statutory | |||||
| Revenue | 7,097 | 6,619 | 7 | n/a | n/a |
| Operating profit | 1,694 | 1,265 | 34 | n/a | n/a |
| Profit before tax | 1,551 | 1,174 | 32 | n/a | n/a |
| Basic EPS | USc131.3 | USc84.2 | 56 | n/a | n/a |
| Total dividend | USc58.50 | USc54.75 | 7 | n/a | n/a |
1. See Appendix 1 (page 15) and note 5 to the financial statements for definitions of non-GAAP measures.
2. Organic revenue growth is at constant currency.
3. Revenue and Benchmark EBIT for the year ended 31 March 2023 have been re-presented for the reclassification to exited business activities of certain Business-to-Business (B2B) businesses, detail is provided in notes 6(a) and 7 to the financial statements.
4. See page 16 for reconciliation of Benchmark EBIT from ongoing activities to Profit before tax.
Highlights
· Strong FY24 performance, with growth improving as the year progressed. Q4 organic growth was 8%, resulting in 6% for the full year. Total FY24 revenue growth from ongoing activities was 7% at constant exchange rates, and 8% at actual rates.
· Consumer Services organic revenue grew 7%. We now serve over 180 million free members as we continue to expand our products and services to help our members navigate their financial lives.
· B2B organic revenue grew 5%. Our broad portfolio of data, analytics and software offerings, and high-growth verticals drove performance.
· All regions and segments delivered organic revenue growth for the year. Latin America achieved double-digit growth, with a solid performance in North America. UK and Ireland growth was resilient and EMEA and Asia Pacific growth accelerated.
· Benchmark EBIT from ongoing activities rose 8% to US$1,944m, with a Benchmark EBIT margin of 27.6%, up 10 basis points at actual rates and constant currency.
· Strong flow-through to EPS. Benchmark EPS growth of 8%, and 7% at constant exchange rates. Basic EPS up 56%.
· Benchmark operating cash flow was US$1.9bn, a conversion of 97%.
· Strong financial returns and position, driven by capital discipline and strategic execution. ROCE of 17% and Net debt to EBITDA of 1.7x.
· Statutory profit before tax of US$1,551m, up 32% (FY23: US$1,174m), due to revenue growth and reduced non-benchmark costs compared to the prior year.
· Full-year dividend up 7% to USc 58.5 per ordinary share.