Publicis Reports ‘Very Strong Start to 2024’ – Beats Expectations with +5.3% Organic Growth

Publicis said it is “confident in its ability to deliver on all of the 2024 targets” with organic growth between +4% to +5%.

Publicis Groupe has released its earnings report with Q1 2024 organic growth coming in at +5.3%. The company reported ‘solid performance across all regions’ with continued strong growth in the U.S. at +5% driven by data and media, while Europe grew at +6% and China accelerated to +7%.

The company said in a statement that it is “confirming 2024 guidance, continuing to grow twice as fast as the industry average.”

Speaking on the results, Arthur Sadoun, Chairman and CEO of Publicis Groupe said:  “There were three clear drivers of this performance. First, our ability to capture a disproportionate part of the increasing demand for data-led marketing transformation, boosted by AI, in a soon-to-be-cookieless world. This translated into the double-digit growth of our combined Epsilon and Publicis Media offer.


 

“Second, continued new business tailwinds, coming after we topped the league tables once again, and as we have for the past five years. Last but not least, the impact of a clear rebound in the tech sector, where we saw double-digit growth this quarter.”

Breakdown of Q1 2024 Net revenue by region

Publicis Groupe released the following highlights of revenue by region

Net revenue in Asia Pacific recorded +6.4% growth on a reported basis and +6.2% on an organic basis. China posted a strong performance at +6.7% organically due to new business wins in Media. South-East Asia posted a double-digit performance fueled by Malaysia, Indonesia, as well as Thailand. Australia posted broadly stable organic growth on the quarter.


 

North America net revenue was up +3.6% on a reported basis in Q1 2024, including a negative impact of the U.S. dollar to Euro exchange rate. Organic growth was at +4.8%. In the U.S., organic growth came at +5.0%, with Media and Epsilon accretive this quarter, confirming the strength of our integrated offer in this geography where our model is the most advanced. Media posted a double-digit increase, and Epsilon’s high-single-digit growth was fueled by Digital Media and Data activities. Publicis Sapient grew +2.2% organically after +8% in Q1 last year, sequentially improving from Q4 2023. Creative activities were broadly stable.

Net revenue in Europe was up by +6.7% on a reported basis and +6.1% organically. Organic growth in the U.K. was slightly positive, with double-digit growth in Media and Creative offsetting a negative Publicis Sapient which was up against a high comparable of very strong growth in Q1 2023. Organic growth in France was +9.4% and largely driven by high-single digit growth in Media and double-digit growth at Publicis Sapient again this quarter. Germany posted +4.9% organic growth led by double-digit growth in Media. Central & Eastern Europe was very strong, at +21.2% organically, benefitting from global wins ramping up in Media and Production.

In Middle East & Africa, net revenue was up +2.3% on a reported basis and +4.0% organically. Organic growth was largely driven by Creative activities, primarily in the UAE.

Net revenue in Latin America was up +21.7% on a reported basis, and +7.8% organically, with growth driven by both Media and Creative, notably in Brazil, Mexico and Chile.

Outlook

Looking ahead Publicis Groupe said in a statement: “Despite ongoing macroeconomic uncertainties, and thanks to the strength of its unique model, Publicis is confident in its ability to deliver on all of the 2024 targets set at its full year 2023 earnings, with organic growth between +4% to +5%.”

 

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