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Publicis Groupe to pay out bonus to staff, increase M&A budget post 2021 business results

The Groupe has reported net revenue for the financial year 2021 at 10,487 million euros, up by 8.0% on a year-on-year basis, as compared to 9,712 million euros in 2020

Publicis Groupe has reported net revenue for the financial year 2021 at 10,487 million euros, up by 8.0% on a year-on-year basis, as compared to 9,712 million euros in 2020.

The advertising network has rebounded from the impact of Covid-19 in 2020, having reported revenue growth of 8.8% on YoY basis to 11,738 million euros, 3% ahead of pre-pandemic results in 2019.

As per the company, organic growth was +10.0% in FY 2021 compared to 2020. Compared to 2019, this leads to an organic growth of +3%, accelerating in H2 at +5% after +1% in H1.

In its investor report, Arthur Sadoun, Chairman and CEO of Publicis Groupe, commented on the company’s performance, “2021 was a record year not just financially, but also commercially. For the third time in the past four years, we topped the new business rankings as league tables placed us well-ahead of the pack, with landmark wins including Stellantis, Walmart and Meta, to name just a few. We also started 2022 on a high note, with the win of McDonald’s US.”

Sadoun said that both Epsilon and Publicis Sapient were essential to the network’s full-year growth, at +12.8% and +13.8%, respectively. 

Therefore, the network will be increasing its merger and acquisition budget to between $ 450-680 million this year as it continues to strengthen its data and tech capabilities.

He said, “The agencies have helped Publicis to be in a position to capture the structural shifts in the industry towards first-party data management, digital media, commerce, and business transformation.”

The agency is expecting to maintain this year's record 17.5% operating margin rate and 1.4-billion-euro cash flow in 2022. With this good news in play, the company has announced a bonus for all employees. “With this, we are in a position to propose a dividend of 2.40 euros, corresponding to a payout of 47.8%. an exceptional one-week additional salary for the 35,000 with no variable remuneration,” said Sadoun. 

North America with a growth of 9% against 2019 figures drove the organic growth of Groupe. 57% of the total revenue of Groupe was added by the US. While the organic growth for Asia-Pacific was flat, growth in Europe was 1% less than 2019 levels.

Pointing out three priority areas for 2022 Sadoun said, “Leveraging our unique assets in data and technology for all of our clients; giving our people more opportunity to progress, with unprecedented experiences like Work Your World; and delivering growth that is both profitable and responsible.”

Info@BestMediaInfo.com

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