KPMG Luxembourg Reports Revenue Increase of 16%, Reaching €319m

KPMG Luxembourg has announced that it reached double-digit growth during the 2023 fiscal year, with a 16% increase in revenue across its three functions: audit, tax and advisory.

The firm has achieved sustainable growth over the last three years, a development which KPMG attributes to its continuous investment in its people, digital transformation and client centricity. In 2023, total revenues reached €319 million (+16%), with audit contributing €166 million (+22%), tax contributing €73 million (+14%) and advisory contributing €80 million (+7%).

Reflecting on the financial performance of the firm, David Capocci, Managing Partner at KPMG Luxembourg, said: "I am incredibly proud of the strategic choices we've made within the firm. Our growth allowed us to partially compensate for inflation of overhead expenses, growing costs of labour, and digital transformation investments, which grew by more than 20%. Our focus on client centricity, innovation and people has served as the right recipe for us and our clients."

"Our business, like the business of our clients, is undergoing ever-evolving challenges and changes. The need to adapt and remain agile is essential to keeping the pace in the face of economic uncertainties," he added. "We have concentrated our efforts on strategic products and services, successfully optimising our processes to be faster, more agile and above all, maintain the highest quality of work. [...]" 

The firm's audit practice grew by 22% in 2023. One key factor of this success, according to KPMG, was due to the smart audit platform, KPMG Clara, which is continuously enhanced to accommodate evolving demands, further integrate existing audit applications and develop new capabilities to digitalise additional audit processes.

The firm's tax services witnessed a growth of 14%, mainly due to the increasing demand for tax compliance and fund taxation services. Rapid globalisation, tax law developments and the rising number of audits with tax authorities are all impacting the burden on the tax departments of clients, noted KPMG. To address this, the firm (with the support of tax technology tools) provides clients with impact assessments in relation to new laws, regulations and tax reporting requirements.

The firm’s advisory practice has grown by 7%, with corporate finance leading the way with an increase of 50% over the past two years. According to KPMG, this change was fuelled by the dramatic increase in interest rates in 2023 and the consolidation trend in the financial sector.

Stanislas Chambourdon, Head of Sales and Markets, emphasised how client centricity will define the "unique" proposition of the firm: "Client centricity is embedded in everything we do. From onboarding new clients to accompanying existing clients, nurturing and developing relations are what makes our business human."

David Capocci added that "KPMG is a multifaceted firm where career opportunities are boundless. [...] KPMG wants its people to do work that matters, supported by a community that values diversity and cares about them." He also emphasised the firm's commitment to environmental, social and governance (ESG).

Moreover, he highlighted the project to build a new headquarters in Luxembourg-Kirchberg "by end of the decade" in order to "meet the growing needs and expectations" of employees and clients. "We're planning to create a modern, flexible and sustainable workplace, which will encourage connection, collaboration and innovation," he added.

KPMG Luxembourg currently counts 1,862 employees.