News

Dentsu reports record profits and 13% organic growth in FY2021 results

Global advertising group Dentsu has released its full-year 2021 financial results ahead of guidance with operating profit up 44% and organic growth of 13.1%.

The results mark a significant recovery from its 2020 results when it recorded a $1.33 billion loss. Net profit for the entire group increased 56.2% to ¥109.2 billion (A$132.5 billion).

In APAC (excluding Japan), organic growth was 4.7% in FY2021 and 3.8% in Q4 FY2021. The Australian market saw good growth across all three service lines as the impact from the refreshed management team is beginning to show, with Q4 growing over 20%.

FY2021 growth was predominantly driven by strong performances in Singapore 24%, Indonesia 20.8%, and Australia 12.1%. This strong growth was offset by decline across India, China and Thailand. China experienced declines in creative towards the end of 2021, a continuation of the trend seen in Q3, reporting a 2% revenue decline for the full year.

Dentsu Group Inc. president and CEO, Hiroshi Igarashi, said: “This performance is testament to the return to growth in our industry, the cyclical recovery in advertising as well as continued investment clients are making in commerce and experience. We remain confident in the long term growth outlook for the group and upgrade our medium term targets. We look for Dentsu Group to deliver 4 to 5% organic growth CAGR from a target of 3 to 4% previously.”

“With the strong recovery in 2021 we will look forward in 2022 and beyond to unlock even more value within the group, leveraging our competitive positioning, our strong product offering and the 65,000 talented individuals within the organisation.”

Dentsu FY2021 financial results

ADVERTISEMENT

Get the latest media and marketing industry news (and views) direct to your inbox.

Sign up to the free Mumbrella newsletter now.

 

SUBSCRIBE

Sign up to our free daily update to get the latest in media and marketing.