PwC Canada posts solid 5.1% growth in FY 2021

PwC Canada has posted a solid increase in revenues for the 12 months ending June 30, 2021, reporting 5.1% growth (at constant exchange rates).

PwC’s global network saw revenues increase 4.9% from US$43 billion in FY20 to US$45 billion in FY21, though the growth was a lesser 2% when foreign exchange movements were stripped out. The firm in FY20 reported 1.4% growth in US dollars and 3% growth in local currency.

Both fiscal years have borne the impact of the pandemic downturn. FY20 had robust growth leading up to the pandemic, when contracts ground to a halt in April, while FY21 has conversely seen an upswing in the springtime. After growth was flat for most of the year, PwC’s fees accelerated significantly between April and June 2021, up by 18.1% compared to the same period the prior year. Though the healthy growth rate is partially attributable to the especially dire performance of Spring 2020, PwC says it also reflects accelerating demand for services such as deals and restructuring as economies open back up.

The Americas region had flat revenues (0.1% growth) to remain at US$18.3 billion in FY21. PwC US, which accounts for most of the region’s fees at over US$17 billion, saw significant downturn in disbursements and expenses recharged to clients (such as business travel) which contributed to static revenues. Central and South America also continued to experience challenging economic conditions.

Canada, however, was the star performer of the region with 5.1% growth. And it wasn’t because PwC Canada was crushed in FY20 either: Americas revenues grew approximately 3% that year, with “particularly good performance from businesses in the United States and Canada,” according to PwC’s annual update in 2020.

The Canadian member firm has 7,300 people and revenue in the ballpark of US$1.2 billion, according to modeling from Dun & Bradstreet.

The EMEA region grew by 8% in US dollars and 2% in local currency to reach US$18 billion in revenue, while Asia and Asia-Pacific grew 9.4% in US dollars and 6.2% in local currency to reach US$8.9 billion in revenue.

Advisory continued to be a growth engine for PwC like the other Big Four, with a 5.8% rise (3.1% at constant exchange rates) to surpass the performance of the assurance and tax businesses.

Rivals Deloitte and EY have also reported a modest rebound in growth compared to 2020. Deloitte grew by 5.5% in FY 21 to reach US$50.2 billion (up from 3.9% growth in FY20), while EY grew 7.3% to reach US$40 billion (up from 2.3% growth in FY20).

KPMG has yet to report its revenues. The company’s global fees shrunk 1.8% to US$29.2 billion in FY20.