Omnicom Group posts ‘stronger than expected’ organic growth in Q4, ending 2022 on a high
Omnicom Group finished 2022 “stronger than we expected”, according to chairman and CEO, John Wren, after it posted revenue of US$3.87 billion (A$5.57 billion) for Q4 and organic revenue growth of 7.2% for the quarter.
The company reported an operating profit of US$642.7 million (A$924.2 million), an increase on 2021, with an operating profit margin of 16.6%.
*Figures reported in US$ millions
“Fourth quarter organic revenue growth of 7.2% was stronger than we expected, led by resilient performance across global geographies and continued strength in our faster-growing disciplines,” said Wren.
“We enter 2023 in a very strong position, building on last year’s significant new business wins and bringing together creativity, digital technology, and data to create marketing solutions that are responsive to the business transformation needs of our clients.”
“At the same time, we are closely tracking the macroeconomic outlook and are fully prepared to respond appropriately. We are confident that the flexibility and diversity of our business and the strength of our balance sheet will continue to create value for our shareholders.”
Omnicom is the second global advertising holding group to surpass its own expectations across the final quarter of 2022, following Publicis Groupe’s results last week.
Organic growth by discipline in Q4 was as follows: 6% for Advertising & Media, 11.6% for Precision Marketing, 12.7% for Public Relations, 7.2% for Commerce & Brand Consulting, 6.4% for Healthcare, and 17% for Experiential. Execution & Support decreased 2.8%.
Across the year, compared to 2021: 7.3% for Advertising & Media, 17.1% for Precision Marketing, 13.7% for Public Relations, 10.7% for Commerce & Brand Consulting, 7.1% for Healthcare, 4.0% for Execution & Support, and 26.1% for Experiential.
In the quarter, all regions saw organic growth compared to Q4 2021, led by 32.6% in the Middle East and Africa. The rest were as follows: 5.6% for the United States, 9.9% for the United Kingdom, 5.1% for the Euro Markets & Other Europe, 6.9% for Asia Pacific, 18.2% for Latin America, and 7.3% for Other North America.
For FY2022, Omnicom reported operating profit margin of 14.6%, down on 2021’s 15.4%, with revenue equal to 2021 at US$14.3 billion (A$20.6 billion). Operating profit was US$2.08 billion (A$2.99 billion), down from US$2.20 billion in 2021.
Across the year, compared to 2021, organic growth across the regions was as follows: 8.7% for the United States, 10.9% for the United Kingdom, 9.7% for the Euro Markets & Other Europe, 6.6% for Asia Pacific, 14.1% for Latin America, 9.2% for Other North America, and 33.2% for the Middle East & Africa.
As of 8 February 2023, Omnicom Group’s share price sits at US$90.92 (A$130.74), with a market capitalisation of US$18.5 billion (A$26.6 billion).
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Calum Jaspan was news editor at Mumbrella, based in Melbourne. He was also the producer and host of the Mumbrellacast. He left Mumbrella in May 2023.
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