Publicis Group Ends 2022 Strongly, Plans For A More Subdued 2023

Publicis Groupe ended 2022 in impressive style with the holding company’s Q4 organic growth of 9.4 per cent (10.1 per cent for the year) and net revenue for the year up 20 per cent.

However, the Paris-based company offered a more subdued assessment of 2023, predicting organic growth of between three and five per cent.

Europe was Publicis’ best performing region, up 12.3 per cent. The US was up 10 per cent and APAC (which includes Australia), up a more modest 6.5 per cent.

Highlight of the numbers included:

2022 reported net revenue up up 20 per cent
Full year 2022 organic growth at +10.1 per cent after strong end to the year with Q4 at +9.4 per cent
Epsilon and Publicis Sapient at +12 per cent and +19 per cent organic respectively in 2022
Operating margin rate at 18 per cent with bonus pool at record high, headline EPS at €6.35 up +26 per cent and Free Cash Flow at €1.7bn
N°1 in new business league tables in 2022 for the fourth time in five years
2023 organic growth expected at up three to fiver per cent with operating margin rate between 17.5 per cent and 18 per cent
2022 proposed dividend at €2.90 per share, fully paid in cash

Commenting on the results, Arthur Sadoun (lead image), chairman and CEO of Publicis Groupe said: “2022 was another record year for the Groupe with reported net revenue up up 20 per cent.

“For the second year in a row, we delivered double-digit organic growth and record-high financials, with Q4 well ahead of expectations.

“Today, the profound transformation we have been through means our business is firing on all cylinders, allowing us to outperform the market once again on every KPI.

“Thanks to our data and technology capabilities, which now represent a third of our revenue, we have been able to continue to capture the shift in our clients’ spend towards first party data management, commerce and business transformation. This can be seen in Epsilon and Publicis Sapient’s annual numbers, with organic growth of up 12 per cent and 19 per cent respectively. That dynamic has also boosted our creative and media business, and is reflected in all of our regions, with the US up 10 per cent, APAC at 6.5 per cent and Europe at up 12.3 per cent for the year.

“Our go-to-market, positioning Publicis as a key partner in our clients’ transformation, means we have won more than our share of new business opportunities, and topped the rankings for the fourth time in the past five years.

Last but not least, our unique platform organisation, with our global delivery centres, our shared services and our country model, powered by Marcel, allowed us to deliver best in class financial ratios while maintaining record-high bonuses and rewarding everyone in our group. Our operating margin rate came in at 18 per cent, free cash flow at 1.7 billion euros, while our headline EPS grew by 26 per cent, allowing us to propose a dividend of 2.90 euros per share.

“This same revenue mix, go-to-market, and platform organization make us confident for the year ahead, despite the continued macroeconomic challenges. In 2023, we expect to sustain the momentum we have built since the pandemic, delivering 3 to 5% organic growth, in line with our 3-year CAGR, while maintaining an industry-leading operating margin between 17.5% and 18 per cent.

“None of this would be possible without the trust of our clients and the outstanding efforts of our people, who I’d like to deeply and sincerely thank for everything we have achieved together so far,” Sadoun said.

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Arthur Sadoun Publicis Group