Publicis Groupe soars in first half, raises guidance

Publicis Groupe defied economic headwinds to deliver a stellar first half of 2024. Not only did they achieve a solid net revenue organic growth of 5.4%, but they handily beat expectations with a Q2 growth of 5.6%. This impressive performance puts them nearly double the growth rate of their competitors, solidifying their position as an industry leader.

Fueled by these strong results, Publicis Groupe is upping the ante. They've revised their full-year guidance upwards to a range of 5-6% net revenue organic growth, demonstrating their confidence in continued momentum throughout the latter half of 2024.
Highlights:

Net revenue organic growth of +5.4% in H1 2024, driven by continued market share gains.
Stronger than expected Q2 net revenue organic growth of +5.6%, exceeding industry average.
Operating margin rate maintained at a record H1 level of 17.3%, including AI investment.
Full-year 2024 net revenue organic growth guidance upgraded to +5-6% from +4-5% previously.
Industry-leading financial KPIs maintained: operating margin rate of 18.0% and free cash flow between €1.8bn-€1.9bn expected for 2024.

Arthur Sadoun, Chairman and CEO of Publicis Groupe, said: "Publicis achieved a very strong first half of the year, with net revenue organic growth at +5.4% and +7.4% growth on a like-for-like revenue basis. We continued to win market share, with Q2 net revenue organic growth accelerating to +5.6%, above expectations and 400bps ahead of our industry. As a result, we are confident in our ability to accelerate further in H2 and are raising our net revenue organic growth guidance."

Financial Performance:

Net revenue of €6,688 million, up +5.9% year-over-year.
Operating margin of €1,160 million, up +6.1% year-over-year.
Headline diluted EPS of €3.38, up +5.3% year-over-year.
Free cash flow before changes in working capital requirements of €744 million.

Regional Performance:

Continued momentum in North America (+5.3% organic growth).
Robust performance in Europe (+4.2% organic growth) despite a high comparable base.

Outlook:

Publicis Groupe is confident in its ability to achieve its upgraded full-year 2024 guidance of +5-6% net revenue organic growth. The company remains committed to maintaining its industry-leading financial ratios.