Publicis Groupe reported 5.7% organic growth to $3.8 million in Q4, as well as 6.3%, expecting 4% to 5% organic growth in 2024, citing continued strong performance across media, tech and creative.
Arthur Sadoun, Chairman and CEO of Publicis Groupe, said, “In a very challenging macroeconomic context, and after 6 years of transformation, Publicis definitely extracted itself from the pack in 2023. 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.”
Media accounted for one-third of 2023 revenue, growing double-digits due to market-share gains and organic growth from existing clients. Data and tech accounted for another third of revenue. Publicis Sapient, a core part of the group’s AI plans, achieved 3.2% organic growth while Epsilon grew 9.6% for 2023, year-over-year, largely driven by its digital media and data divisions. Creative, the remaining third, had low-single-digit growth for the year, affected by localized cuts in North America in classic advertising.
Breakdown of FY 2023 net revenue by sector
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Automotive accounted for the highest percentage of FY 2023 net revenue at 15%, followed by financial and healthcare at 14% each; food and beverage at 13%; technology, media and telecommunications at 12%; non-food consumer products at 11%; retail at 10%; public sector and other services as well as leisure and travel at 4% each; and energy and manufacturing at 3%. The breakdown is based on 3,641 clients representing 91% of the group’s net revenue.
Sadoun said, "Entering 2024, we feel confident in sustaining this momentum, just as we’ve done for the last four years with a +4.7% CAGR, twice the industry average. 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."