Publicis H1 22 results at ‘all time high’, with new global business wins driving organic growth

Publicis has revealed its Q2 2022 results, delivering “all-time high” growth and revenue figures.

Publicis Groupe CEO and chairman, Arthur Sadoun, affirmed that Q2 2022 reported growth of +21%, and organic growth at +10.3% after +17.1% in Q2 2021.

Publicis Media emerged as an industry leader in Forrester’s latest media agency Wave report, which revealed Publicis Media Group led on “strategy”, while Omnicom Media Group presented the strongest overall offering.

Despite global economic troubles, the agency reported a revenue of 3.073 billion euros, with a reported year-over-year growth of 21%.

Exchange rates had a positive impact of 229 million euros. Acquisitions, net of disposals, accounted for an increase in net revenue of 21 million euros.

“This performance, combined with our better visibility on a solid H2 and the strength of our model, make us confident for the future. We are therefore upgrading our guidance on all KPIs for 2022, with an organic growth now expected between +6% to +7% for 2022, an operating margin rate between 17.5% and 18% and a Free Cash Flow at least at 1.5 billion euros,” said Arthur Sadoune, Chairman and CEO of Publicis Groupe.

Publicis Groupe delivered its 2021 full-year financial results in February of this year, with Sadoun similarly noting “strong organic growth”, and reporting net revenue of €11.73 billion (A$18.81 billion).

At the time, Publicis published “record numbers” and exceeded 2019 levels across all of its KPIs.

Publicis Groupe’s net revenue in Q1 2022 was 2.8 billion euros, up 17.1% from 2.392 billion euros in 2021.

This marks a significant increase in revenue from previous quarters, as the company’s 2021 Q3 financial results saw the company report net revenue of 2.62 billion euros  (A$4.1 billion).

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“H1 2022 came in at an all-time high for the Groupe on all KPIs,” said Sadoune.

“Our reported net revenue growth in the first half was at +19.1%. It was up +10.4% on an organic basis, implying +11.3% on a 3-year basis, versus pre-pandemic levels.”

North America net revenue was up +25.2% on a reported basis in Q2 2022. Organic growth in the region was +10.3%. In the U.S., organic growth came at +10.1%, confirming the country’s strong dynamic in all its activities.

In Q1 2022, North America’s net revenue was up +16.1% on a reported basis, including a positive impact of the US dollar to Euro exchange rate. Organic growth in the region was +8.1%. In the US, organic growth came at +8.0%. Evidently, significant growth has occurred in the region since the last reporting period.

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The Groupe also experienced strong recovery in Europe, with net revenue up by +11.8%. It was up by +10.1% on an organic basis. This growth was helmed by business in France and the UK, in addition to strong growth in Asia.

Net revenue in Asia Pacific was +14.2%, supported by the new Pepsi creative account in India. Despite lockdowns in several cities, China was positive at +2.7% organic growth, supported by new business wins.

Publicis Groupe currently trades at 49.50 EUR and has a market capitalisation of €12.53 billion (A$16.8bn).

In October 2021, Publicis Groupe traded at 58.9 EUR (A$87.74) and had a market capitalisation of €14.8 billion (A$22.05bn).


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