Omnicom reports 10% growth for 2021, projects more growth in 2022
Omnicom group Inc. has announced the results for the quarter and full year ended December 31, 2021.
According to Omnicom, the growth exceeded its expectation in the fourth quarter.
John Wren, chairman and chief executive officer of Omnicom group Inc., in a statement on the company’s website said: “Global organic revenue growth of 9.5 percent exceeded our expectations in the fourth quarter, operating profit margins remained very strong and we posted solid quarterly earnings per share.”
Continuing, he said: “Once again, thanks to the efforts of our people across Omnicom, we were pleased to see strong results across all geographies and services , led by our focus on digital, precision marketing and consulting.
“Our teams are working together in power in new ways with leading technology and data solutions to deliver the best outcomes in a rapidly evolving market. We are optimistic in our 2022 outlook and expect to continue to build on our long term record of improving profitability and sustained value creation.”
Omnicom’s stock rose nearly 6% in after hours trading (following a gain of 2% during regular trading hours) after it released its fourth quarter and full-year 2021 earnings report.
Q4 organic growth (which excludes currency and M&A impact) was 9.5% while full-year growth was 10.2%, versus 2020.
By region, full-year growth in the U.S. was 8.1%, nearly 9% in the UK, 13.6% in Europe, 13.7% in Asia Pacific and 9.4% in Latin America. The company’s smallest region, the Middle East and Africa was up more than 26%.
And the company’s organic growth guidance for full-year 2022 is between 5% and 6%.
Reported Q4 revenue was up 2.6% to nearly $3.9 billion. The full-year numbers: $14.3 billion, up 8.5%.
A year ago the company reported a 9.6% drop in Q4 growth with a full-year 2020 organic revenue shortfall of 11.1%. Those declines were pandemic-related.
The company noted that staffing levels had recovered to pre-pandemic levels of approximately 70,000 people worldwide, after having been cut by about 5,000 jobs during the height of the health crisis.
The company recently bought the building that houses its London hub which accommodates about 5,000 employees. The UK is the group’s second largest market.
Wren said that based on discussions with clients, “there are no celebrations”. Rather, they’re focused on growth and specifically building better relationships with customers. “They’re aware that each customer is being influenced by messages 24/7, supply chain issues and inflation remain near term issues, Wren added.
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