Publicis Groupe reports 5.7% organic growth in Q4, 6.3% for 2023

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

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."