Publicis Groupe has recorded a strong start to 2022, outstripping analyst expectations for the first quarter of the year despite the war in Ukraine, inflation and the ongoing pandemic.
The holding company's organic revenue—which strips out the impact of acquisitions, divestitures and currency fluctuations—increased by 10.5%, ahead of analyst expectations of approximately 6%, to 2800 million euros. It was boosted by several major new business wins, particularly in media. These included PepsiCo’s media in China, LVMH’s media in the U.K. and France and AB InBev’s global media.
The strongest growth came from Publicis Sapient, which increased its organic revenue by 18.5% globally and by 16.3% in the U.S. Speaking to Ad Age, Arthur Sadoun, CEO and chairman of Publicis Groupe, said its acceleration was driven by three sectors: financial services, automotive and retail. "The shift from paid media to owned media is accelerating and clients need their own digital ecosystem to go direct to consumer," he said.
Regionally, Publicis’ performance was particularly strong in Europe, with 14.9% organic growth fueled by the U.K. and France in particular as those countries continue to recover from the pandemic. Business was also healthy in Asia, where it recorded organic revenue growth of 14.4% boosted by double-digit growth in China with wins including PepsiCo media.
The U.S. grew by 8% which Publicis said continued its “momentum” from fast growth in 2021, and Canada by 11.7%. In the Middle East and Africa, revenue grew by 13% organically, mainly driven by media, and in Latin America, by 13.1%, mainly driven by creative activities.