PwC Australia reports 24% profit slide in 'challenging year'
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The news: PwC Australia saw its profit slide nearly 25% in FY24, during what the firm called a "challenging year", but noted "significant progress" against its "commitments to change" strategy following the fallout of its tax leaks scandal.
The numbers: PwC Australia’s revenue was $2.5 billion for the 12 months to 30 June, 2024, reflecting an underlying revenue reduction of 26.1% and a profit fall of 24.4%.
The firm said the declines were primarily driven by the sale of its government consulting business in November 2023 and economic headwinds.
PwC Australia saw employee numbers decline, but promoted 1,006 workers, or 15.5% of its workforce, during the year. It awarded incentive payments of $33 million and increased fixed total remuneration by $61 million, or 5.4%. On 1 July, as part of the annual review process, fixed total remuneration was boosted by a further $40 million.
The firm also welcomed 22 new partners to the partnership and 1,296 people to the firm during the reporting period. Meanwhile, average partner income declined by 12.7%.
PwC said it has now addressed 36 of the 47 actions outlined as part of its "commitments to change" strategy, including the implementation of a governance reform package, which saw the establishment of the firm’s governance board.
The firm also launched a new three-year strategy, putting "culture at the heart of everything it does", redefining "new focus behaviours", realigning its business structure and refreshing its leadership.
The context: In March, PwC Australia confirmed a raft of layoffs following the publication of its "commitments to change" strategy.
The strategy came in response to an independent review into the company's highly publicised tax scandal, which uncovered the consultant’s use of confidential information about tax avoidance legislation to win new business.
What they said: PwC Australia CEO Kevin Burrowes said: "During a challenging year for the firm, we implemented ambitious and meaningful actions which are changing our firm for the better.
"We introduced a new business strategy, leadership team and governance board — including the appointment of an independent chair — new risk systems, accountability measures and behavioural expectations.
"We’ve also made changes to our firm’s shape and size, better aligning our business to meet the changing needs of our clients and external environment."
The source: PwC media release
