Publicis Groupe reported net revenue organic growth at +6.3% along with a stronger-than-expected Q4 at +5.7% in its full-year 2023 results.
The French multinational advertising and public relations company posted net revenue for 2023 was 13,099 million euros, up +4.2% compared to 12,572 million euros in 2022.
The Groupe’s strong and consistent performance in 2023 was reflected in its different capabilities. Media, which is one-third of the revenue, grew double-digit on top of double digits last year, benefitting from both market share gains and organic growth at existing clients.
Data and tech activities, also another third of revenue, posted a very solid growth overall, while creative, the remaining third, showed its resilience with organic growth in the low-single digits for the year.
In the APAC region, Publicis Groupe’s net revenue grew by +2.9% organically and saw a decline of 1.7% on a reported basis. Meanwhile, China posted +2.2% organic growth despite difficult macroeconomic conditions throughout the year.
Arthur Sadoun
Arthur Sadoun, chairman and CEO of Publicis Groupe, said: “Publicis definitely extracted itself from the pack in 2023” despite a very challenging macroeconomic context and six years of transformation.
“Our +6.3% net revenue organic growth for the full year, coming after a stronger than expected end to the year at +5.7% in Q4, means that not only are we substantially outperforming our holding company peers, we are also growing twice as fast as the main IT consulting firms.”
“What is true for organic growth is also true for our financial KPIs, be it on margin or on free cash flow.”
He said the company’s unique model has made a difference in allowing them to significantly gain market share and rank first in new business for the fifth year in a row.
Sadoun noted that Publicis Groupe has established itself as the industry’s “second largest player and the first in terms of market capitalisation.”
He added that the company is entering 2024 feeling confident in sustaining the momentum as they have over the last four years with a +4.7% CAGR.
“We anticipate delivering +4 to +5% organic growth while maintaining our historically high operating margin at 18%. When it comes to Q1, we expect to significantly outperform the industry with an organic growth within our full year guidance,” he said before going on to thank the company’s people for their efforts and the clients for trusting their transformation journey.
Publicis Groupe says it is “confident in outperforming in 2024, despite macroeconomic challenges.”
Looking ahead, the company is forecasting organic growth at +4% to +5%, an operating margin rate of 18% and free cash flow between €1.8 and €1.9 billion.