Publicis Groupe has posted its third-quarter numbers overnight, with the Paris-based holding company announcing organic growth of 10.3 per cent and predicting 8.5 per cent revenue growth for 2022.
In recognition of the results, Publicis said it would pay “an exceptional bonus” worth an extra week’s salary to all staff who are not entitled to variable compensation and have worked at the group for the last 12 months.
It’s estimated that about half of Publicis’ global workforce of 90,000 staffers will share in the bonus that will cost the company an estimated $A90 million and come out at an average of about $A1700 per staffer.
Announcing the numbers overnight, Publicis said Europe was its best performing region with revenues up 11.1 per cent. North America wasn’t far behind with a neat 11 per cent. China was up 5.9 per cent and APAC (where Australia plays) only managed 4.1 per cent.
Publicis Groupe’s shares rose about four per cent in early trading in response to the Q3 results and its new, higher forecast.
Highlights included:
- Q3 reported growth of +23.5 per cent
- A third quarter of double-digit organic growth with +10.3 per cent in Q3:
- Publicis Sapient at +18.1 per cent and Epsilon at +13.9 per cent, both significantly accretive
- Continued strength across regions with notably both the U.S. and Europe at +11.1 per cent
- Acceleration of organic growth compared to pre-pandemic levels: +16 per cent in Q3 versus 2019, after +12 per cent in Q2 and +10 per cent in Q1
- Continued momentum of account wins strengthening leadership position in New Business leagues
- Second upgrade of FY 2022 guidance:
- Organic growth circa +8.5 per cent, vs. +six per cent to +seven per cent previously
- Operating margin rate close to 18 per cent, vs. 17.5 per cent to 18 per cent previously
- Free cash flow close to €1.6bn, vs. at least €1.5bn previously
- An exceptional bonus of one-week salary for half of our employees, to support our talent with no variable remuneration
Commenting on the results, Arthur Sadoun (lead image), chairman and CEO of Publicis Groupe, said: “Q3 came in strong at +23.5 per cent on a reported basis.
“In an increasingly uncertain global economic context, organic growth for the quarter was ahead of expectations at +10.3 per cent.
“For the third quarter in a row, our model allowed us to deliver double digit growth by once again capturing the evolution in client spend towards first-party data management, digital media and business transformation. Publicis Sapient continued to perform strongly with +18.1 per cent organic growth, and Epsilon saw an acceleration to +13.9 per cent organic growth this quarter.
“All of our regions posted solid organic growth, with both the U.S. and Europe at +11.1 per cent, and China at +5.9 per cent despite the ongoing lockdowns there.
“Furthermore, our new business record continues to place us at the top of industry rankings on a 12-month basis, well ahead of competition.
“Overall, our results since the beginning of the year mean that today we are in a position to upgrade our full year 2022 guidance for the second time. We are now confident of delivering circa +8.5 per cent organic growth versus +six to +seven per cent previously, with an operating margin at close to 18 per cent and a Free Cash Flow close to €1.6bn.
“Our Q3 numbers are clearly encouraging. But what really stands out is our performance versus pre-pandemic levels. Compared to 2019, we’ve seen our organic growth accelerate to +16 per cent in Q3. This demonstrates our ability to more than withstand the ups and downs of the global economy, and makes us confident in our ability to face ongoing macroeconomic uncertainties.
“I’d like to thank our clients for their partnership. I also want to say a big ‘merci’ to all of our people for their outstanding efforts. In a context where inflation is impacting the daily lives of many of them, we want to ensure we are giving additional support where it is most needed as we enter the holiday season. That is why we are granting next month an additional one-week salary to half of our team members who do not have any variable remuneration and have contributed to everything we have achieved over the past year,” Sadoun said.
