EY Luxembourg reports growth of 13.3%

EY Luxembourg has announced 13.3% growth for the year ending 30 June 2023, reaching €369 million, up from €325,7 million in 2022.

The firm has recorded a combined total growth of 40.4% over the last three financial years. 

“We are now halfway through our ambition 2026 plan, which was launched in 2020 when the current management and I took office. My partners and I had set ourselves the very ambitious target of increasing sales from €260 million in 2020 to €500 million in 2026. We're on track to achieve this.” 

Olivier Coekelbergs, as Country Managing Partner of EY Luxembourg, attributes this success to the commitment and talent of the company's professionals – who put clients at the heart of everything they do – and to the firms’ investments which keep bringing the expected results. “So far, we have not made single mistakes in our investment decisions,” said Olivier Coekelbergs.

Audit: strong growth of 16.0%

“We are very satisfied by the significant growth we are seeing across all sectors of our Assurance practice, resulting in an overall increase of 16%,” says Michel Feider, Partner, EY Luxembourg Assurance leader. “We have also reached an important milestone for Assurance, by exceeding the 1,000-employee mark during this financial year. The new leadership team in Assurance is committed to investing in innovation, operational excellence, quality and talent in order to consolidate the foundation for our ambitious growth plans. In this context, we are very excited about the launch of our EY Digital Fund Audit tool, a game-changer in how we bring innovation and technology to the core of our wealth and asset management audit delivery.”

Consulting: a 10.7% increase in revenues

“The EY Luxembourg Consulting practice has delivered solid growth of 10.7% in FY23. All pillars of the consulting activities have progressed, with particularly great results in technology consulting and in the regulatory support provided to our clients,” comments Laurent Moscetti, Partner, EY Luxembourg Consulting leader. “FY23 has also been a year of investment in our managed services, both in terms of new talent and state of the art technology. These investments were essential to keep up with our ambition to lead the way in regulatory reporting for funds. We also continued to work on how to leverage the power of AI in a responsible and ethical manner and developed a series of AI governance models to support our clients in their adoption of AI technologies. 

Last but not least, we’re also winning major work by teaming cross-border, sometimes cross continents. These successes show that collaborating across borders enables our teams to bring the best to our clients and allows us to differentiate.”

Tax: 4.2% increase

“EY Luxembourg’s Tax practice recorded a steady revenue increase of 4.2% for the year ended 30 June 2023, mainly driven by our successfully growing accounting, compliance and reporting practice, as well as through global compliance reporting, indirect tax and operational tax services,” says Bart Van Droogenbroek, Partner, EY Luxembourg Tax leader. With the expansion of our range of digital solutions in the area of managed services and tax technology, we continue to efficiently navigate our clients through increasingly complex tax compliance processes. From a regulatory point of view, the introduction of the BEPS Pillar Two Directive has brought profound changes to the international tax environment which we have been guiding our clients through, delivering leading-edge tax advice through our highly specialized team of experts.

Strategy and Transactions: remarkable 43.8% growth

The Strategy & Transactions (S&T) services practice delivered a strong growth of 43.8% in fiscal year 2023.

“Our investments of the past two years, with an additional three partners and almost doubling the size of the team, combined with supportive albeit challenging market conditions, enabled us to repeat our exceptional growth yet again. Thanks to our highly engaged team and the trust from our clients, our practice has recorded impressive revenue growth across all services. Despite a challenged M&A market, the team has been able to win milestone projects. Our valuation, modelling and restructuring services delivered to the investment fund industry have been thriving on the back of valuation transparency needs. Our investments in our real estate services resonated with a need for managers and investors to optimize their investments. Our S&T services are ideally positioned to assist our clients navigating the current macro-economic challenges, the increased regulatory needs and technological developments,” concludes Christophe Vandendorpe, Partner, Strategy & Transactions leader at EY Luxembourg.

People

We have welcome 626 new professionals in the year ended June 2023, passing the 2,000-employee mark. The firm granted 401 promotions out of which 18 promotions to partnership as a result of solid growth across all service lines and a strong commitment to developing our people. 

This autumn we were delighted to welcome 350 graduates and post-graduates as well as 120 interns from more than 30 different nationalities and cultural backgrounds, in line with the existing diversity within our firm and sharply growing our people base which is our most valuable asset. 

We have also started setting the foundations of a transformation journey of our people strategy, which is centered around strengthening purpose, enabling autonomy and shaping excellence in response to the changing dynamics of the current times. 

Sustainability – a strong purpose which guides our work day-to-day

Our commitment to get our business net negative, our people growing and to ensure the best use of technology, has placed AI and innovation at the center of our strategy. “One of our key goals is to also empower our clients to make their businesses more sustainable through our ESG services. We see the recent evolution of ESG requirements in the EU market and abroad and are actively working internally to keep pace with them, aligning our sustainability approach and goals,” says Renaud Breyer, Partner and EY Luxembourg Sustainability leader. “Sustainability is everyone’s responsibility. At EY, we believe it can catalyze positive change and encourage long-term solutions to combat the major challenges our world faces.” 

Leveraging technology, data and partnerships through ecosystems

“Our office and operations have been undergoing exciting transformations in recent years which is still playing out,” comments Gaël Denis, Partner and COO. “EY Luxembourg now employs more than 2,000 people locally. We have also reinforced our collaboration with other foreign offices helping us to deliver exceptional client service every day. 

In addition, we transform our business by attaching technology to our people power, with EY Luxembourg investing €25 million in digital developments over three years. These investments allow us to propose digital one-stop-shop managed services, automate our delivery of our core services but also to bring better user experiences to our people in their day-to-day life at EY.”

In recent years, the global EY organization has developed 102 ecosystem relationships and 67 alliances. In FY23, 17 new business alliances were established and a total of 35 ecosystem relationships. In Luxembourg we are no different, partnering with multiple leaders in technology solutions to ensure we are at the forefront of innovation, and that we bring these developments to our clients.

This fiscal year saw a $3.6 billion investment in audit quality, innovation, technology and people globally, with a $1.4 billion investment enabling the launch of EY.ai, a unifying platform that will help organizations confidently embrace AI.

EY Global: record growth

Worldwide, EY has announced consolidated sales of US$49.4 billion for the year ending June 2023, an increase of 14.2% in US dollar terms. One of the highest growth rates ever recorded. 

All EY divisions reported significant revenue growth. The Consulting division reported significant growth of 21.6%, while the Strategy & Transactions divisions posted growth of 8.4%. Audit revenues rose by 11.0%, while the Tax services division recorded an increase of 12.2%.