Publicis Groupe: First Quarter 2022 Revenue
Very strong start of the year
- Q1 organic growth at +10.5%, well above expectations
- Acceleration of Publicis Sapient at +18.5% organic growth
-
Strong organic growth in all regions:
-
Continued momentum in the
U.S. at +8.0%, with good performance of Epsilon -
Robust recovery in
Europe at +14.9%1 fueled byFrance and theU.K. -
Very solid growth in
Asia at +14.4% withChina double-digit again this quarter
-
Continued momentum in the
- Significant wins in New Business, driven by strength of the model combining data, creative, media and technology
- 2022 guidance confirmed, with organic growth now at upper end of the +4 to +5% range
Q1 2022
|
|
|
€2,800m |
|
€2,392m |
|
+10.5% |
|
+17.1% |
|
|
“We started the year very strongly, both financially and commercially.
Our organic growth for the quarter came well above expectations at +10.5%, versus +2.8% for the same period last year.
Our model is going from strength to strength, as it continues to capture rising client demand for first-party data, digital media and commerce. This is particularly true in business transformation, where Publicis Sapient saw strong acceleration this quarter and grew +18% globally.
All of our regions performed well. The organic growth of the
We are confident in our ability to deliver on all of the objectives we set for the year and actually come in at the upper end of our organic growth target, despite the uncertainty caused by the global health situation, the evolution of the conflict in
This confidence is underpinned by our truly differentiated model. Once again, we demonstrated in the last quarter that with Epsilon and Publicis Sapient integrated with our creative and media operations, we have unique capabilities to help our clients transform, grow and optimize their spend in this very challenging period.
The best proof of the uniqueness and attractiveness of our offer is our new business performance. After topping all of the new business rankings in 2021, we are confirming our momentum with significant wins last quarter like McDonald’s,
I would like to thank our teams for their incredible efforts, and our clients for their partnership.
Of course, the start to the year has also been dominated by the war in
NET REVENUE IN Q1 2022
Publicis Groupe’s net revenue in Q1 2022 was
Breakdown of Q1 2022 Net revenue by region
EUR |
Net revenue |
Reported |
Organic |
|
million |
Q1 2022 |
Q1 2021 |
Growth |
Growth |
|
1,748 |
1,505 |
+16.1% |
+8.1% |
|
662 |
561 |
+18.0% |
+14.9%2 |
|
261 |
217 |
+20.3% |
+14.4% |
|
75 |
62 |
+21.0% |
+13.4% |
|
54 |
47 |
+14.9% |
+13.1% |
Total |
2,800 |
2,392 |
+17.1% |
+10.5% |
Net revenue in
Net revenue in
In
Net revenue in
Breakdown of net revenue at
Automotive |
16% |
|||
Financial |
16% |
|||
TMT |
14% |
|||
Healthcare |
13% |
|||
Food and beverage |
12% |
|||
Non Food consumer products |
11% |
|||
Retail |
9% |
|||
Public sectors & Others |
3% |
|||
Energy & Manufacturing |
3% |
|||
Leisure & travel |
3% |
On the basis of 3,052 clients representing 91% of Groupe net revenue
NET DEBT AND LIQUIDITY
Net debt totaled
The Groupe’s liquidity position remains very solid, at
ACQUISITIONS AND DISPOSALS
On
On
OUTLOOK
In the first quarter 2022, Publicis recorded a stronger-than-expected start to the year, both financially and commercially. While this should have led the Groupe to upgrade its expectations for 2022 organic growth, the global health situation, the evolution of the conflict in
Thanks to the strength of its model, Publicis is confident in its ability to 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. This guidance takes into account a strong Q1 and an expected very solid Q2 at around +5% organic, after +17.1% in Q2 2021. The Groupe confirms its 2022 guidance of circa 17.5% operating margin rate and circa
NEW BUSINESS
McDonald’s (Media), Walmart (Media), Toyota Motor Corporation (DBT),
ByteDance (Media), L'Oréal (Content),
LATAM
GLOBAL
Disclaimer
Certain information contained in this document, other than historical information, may constitute forward-looking statements or unaudited financial forecasts. These forward-looking statements and forecasts are subject to risks and uncertainties that could cause actual results to differ materially from those projected. These forward-looking statements and forecasts are presented at the date of this document and, other than as required by applicable law,
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Appendices
Net revenue: organic growth calculation
(million euro) |
Q1 |
|
Impact of currency
|
|
2021 net revenue |
2,392 |
|
GBP (2) |
8 |
Currency impact (2) |
125 |
|
USD (2) |
100 |
2021 net revenue at 2022 exchange rates (a) |
2,517 |
|
Others |
17 |
2022 net revenue before acquisition impact (b) |
2,781 |
|
Total |
125 |
Net revenue from acquisitions (1) |
19 |
|
|
|
2022 net revenue |
2,800 |
|
|
|
Organic growth (b/a) |
+10.5% |
|
|
(1) Acquisitions (CitrusAd, Boomerang, Tremend, BBK, Balance Internet,
(2) EUR =
EUR =
Definitions
Net revenue: Revenue less pass-through costs which comprise amount paid to external suppliers engaged to perform a project and charged directly to clients. Those costs are mainly Production & Media costs and out of pocket expenses.
Organic growth: Change in net revenue excluding the impact of acquisitions, disposals and currencies.
Net Debt (or financial net debt): Sum of long and short financial debt and associated derivatives, net of treasury and cash equivalents excluding lease liability since 1st
Average net debt: Average of monthly net debt at end of each month.
1 +9.4% excluding Outdoor Media activities & the Drugstore
2 +9.4% excluding Outdoor Media activities & the Drugstore
3 +39.2% including Outdoor Media activities & the Drugstore
View source version on businesswire.com: https://www.businesswire.com/news/home/20220413005978/en/
Corporate Communications
+33 (0)6 38 81 40 00
delphine.stricker@publicisgroupe.com
Investor Relations
+33 (0)1 44 43 77 88
alessandra.girolami@publicisgroupe.com
Investor Relations
+33 (0)1 44 43 72 17
clemence.vermersch@publicisgroupe.com
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