Double-digit organic growth for the 2nd year in a row
Confident for 2023
2022 reported net revenue up +20%
Full year 2022 organic growth at +10.1% after strong end to the year with Q4 at +9.4%
Epsilon and Publicis Sapient at +12% and +19% organic respectively in 2022
Operating margin rate at 18.0% with bonus pool at record high, headline EPS at €6.35 up +26% and Free Cash Flow at €1.7bn1
N°1 in new business league tables in 2022 for the fourth time in five years
2023 organic growth expected at +3% to +5% with operating margin rate between 17.5% and 18%
2022 proposed dividend at €2.90 per share, fully paid in cash
Arthur Sadoun, Chairman and CEO of Publicis Groupe:
“2022 was another record year for the Groupe with reported net revenue up +20%.
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 +12% and +19% respectively. That dynamic has also boosted our creative and media business, and is reflected in all of our regions, with the U.S. at +10%, APAC at +6.5% and Europe at +12.3% 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 organization, 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 18.0%, free cash flow at 1.7 billion euros, while our headline EPS grew by 26%, 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%.
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.”
1 Free Cash Flow (FCF) before change in Working Capital requirement. Reported 2022 FCF at €1,807M before an additional €110M cash tax payment made in January 2023 relating to 2022. This payment reflects the impact of the new application of the U.S. Tax Cuts and Jobs Act (TCJA) on the capitalization of R&D expenses, confirmed late December 2022.
ABOUT PUBLICIS GROUPE - THE POWER OF ONE
Publicis Groupe [Euronext Paris FR0000130577, CAC 40] is a global leader in communication. The Groupe is positioned at every step of the value chain, from consulting to execution, combining marketing transformation and digital business transformation. Publicis Groupe is a privileged partner in its clients’ transformation to enhance personalization at scale. The Groupe relies on ten expertise concentrated within four main activities: Communication, Media, Data and Technology. Through a unified and fluid organization, its clients have a facilitated access to all its expertise in every market. Present in over 100 countries, Publicis Groupe employs around 101,000 professionals.
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