Covid-19 puts the brakes on KPMG's strong growth in Ukraine

07 January 2021 Consultancy.eu
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Global Big Four firm KPMG has seen its revenues in Ukraine drop marginally in its latest financial year. 

Following two years of bumper growth, KPMG’s expansion in Ukraine has come to a halt in the wake of the Covid-19 crisis that hit the world and the domestic economy. In its 2018 fiscal year (ended on September 30, 2018), KPMG booked stellar growth of 39% to lift revenues to UAH 473 million, and in fiscal 2019 (ended on September 30, 2019) the Big Four firm realised 19% growth to reach an aggregate revenue of UAH 561 million.

However, the impact of Covid-19 meant that demand for some of its services have fallen, in particular in its consulting arm. Facing dropping incomes, clients have been quick to tighten their discretionary spending, pausing or cancelling advisory projects alltogether. The firm’s audit and accounting arms however have continued to perform, as such work is mandatory or backed by regulatory requirements. 

Covid-19 puts the brakes on KPMG's strong growth in Ukraine

In the 2020 financial year, fee income fell to UAH 552 million, amounting to a marginal 1% drop, which considering the magnitude of the crisis is a result KPMG Ukraine managing partner Andriy Tsymbal is proud of. “KPMG has demonstrated its resilience in a year full of economic and social turbulence,” said Tsymbal, who has held the top seat since 2014.

Looking ahead, Tsymbal said that the firm is committed to helping its clients navigate the crisis and capitalise on opportunities that will unfold in 2021. In light of the country’s rapid digitisation, digital services will be a key pillar of its offerings.

KPMG has been active on the ground in Ukraine since 1992. The professional services giant provides audit and assurance, tax and legal, advisory, risk consulting, and forensic services, mirroring its international portfolio.

Globally, KPMG’s fee income dropped from $29.8 billion in 2019 to $29.2 billion in 2020.