Publicis Groupe Reports Q1 'Well Above Expectations' With 10.5% Organic Growth – Branding in Asia Magazine

Publicis Groupe has released its Q1 financial results for 2022 and despite the impacts of Covid-19, the pullout from Russia following the war in Ukraine, and rising inflation, the groupe said that “organic growth for the quarter came well above expectations at +10.5%, versus +2.8% for the same period last year.”  Net revenue also increased by 17.1%.
“All of our regions performed well,” said Arthur Sadoun, Chairman and CEO of Publicis Groupe.
“The organic growth of the U.S. at +8% confirms the country’s continued dynamic with a good performance of Epsilon at its core. Europe posted robust recovery at +15% organic growth, fueled by France and the U.K. Meanwhile, in Asia, we also delivered very solid numbers, with +14% organically and double-digit growth once again in China.”
Publicis expressed confidence that it will deliver on all of the 2022 targets set at its full-year 2021 earnings, with organic growth now at the upper-end of its previous +4 to +5% range. The guidance factors in the strong Q1 showing and an expected solid Q2 at around +5% organic, after +17.1% in Q2 2021.
“After topping all of the new business rankings in 2021, we are confirming our momentum with significant wins last quarter like McDonald’s, Singapore Tourism Board, Siemens, Etisalat, LVMH, Pepsi and the largest pitch of the year so far, AB InBev, to name just a few,” said Sadoun.
Net revenue in Asia Pacific was +20.3% on a reported basis, and +14.4% organically. China grew double-digit organically again this quarter, at +10.6%, supported by new business wins. The performance was also double-digit in India and Singapore. Thailand recorded strong performance largely driven by Publicis Sapient.
North America’s net revenue was up +16.1% on a reported basis in Q1 2022, including a positive impact of the US dollar to Euro exchange rate. Organic growth in the region was +8.1%. In the U.S., organic growth came at +8.0%, confirming the country’s strong dynamic in all its activities. Publicis Sapient grew +16.3% organically, as the demand for business transformation continued to accelerate. Media posted double-digit organic increase, while Creative activities saw their net revenue grow mid-single digit, with notably strong Production.
Epsilon grew +6.3% organically, absorbing the anticipated impact of supply chain issues that affected its Automotive division, thanks to double-digit growth in Digital Media and Data. Canada was up +11.7% organically.
Net revenue in Europe was up by +18.0% on a reported basis. It was up by +9.4% on an organic basis, or +14.9% including the contribution of our Outdoor Media activities & the Drugstore. Organic growth in the U.K. was +12.0%, with a notable double-digit growth in Media and strong performance from Publicis Sapient, both driven by recent new business wins. Organic growth in France was +12.3%3 with very strong growth in Media and at Publicis Sapient.
Germany was up +1.2% organically, versus a +6.0% comparable base in the same period last year. Central & Eastern Europe was up +14.9% organically, with double-digit growth in Poland, Romania and Hungary.
In the Middle East & Africa, net revenue was up +21.0% on a reported basis, and +13.4% organically. Organic growth was largely driven by Media, Publicis Sapient in the Middle East, and Creative in Africa.
Net revenue in Latin America was up +14.9% on a reported basis, and +13.1%. organically, with most countries reporting growth this quarter, largely driven by Creative.

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