Omnicom’s global organic revenue growth of 9.5% exceeded expectations: John Wren

Omnicom Group’s worldwide revenue in the fourth quarter of 2021 continued to improve from the negative effects of the COVID-19 pandemic. Revenue increased 2.6% to $3,855.9 million from $3,757.0 million in the fourth quarter of 2020. The components of the change in revenue included an increase in revenue from organic growth of 9.5%, a decrease in acquisition revenue, net of disposition revenue, of 6.6%, and a decrease in revenue from the negative impact of foreign currency translation of 0.3%. The decrease in acquisition revenue, net of disposition revenue, reflects the sale of ICON International, a specialty media business, in June 2021.

Operating profit stood at $622.5 million, an increase of 1.3%, with operating profit margin growth of 16.1%. Omnicom saw its net income increase by 4.5% to reach $416.2 million in 2021. Diluted earnings per share of $1.95 was reported, an increase of 6.0%.

Organic growth in the fourth quarter of 2021 compared to the fourth quarter of 2020 increased across all of our fundamental disciplines, including: 7.4% for Advertising, 19.6% for Precision Marketing, 12.4% for Commerce & Brand Consulting, 56.7% for Experiential, 5.2% for Execution & Support, 4.4% for Public Relations and 4.5% for Healthcare.

EBITA in the fourth quarter of 2021 increased $7.3 million, or 1.1%, to $642.7 million compared to the fourth quarter of 2020. The EBITA margin stood at 16.7%, a slight decrease from 16.9%.

Commenting on the company’s performance, John Wren, Chairman and Chief Executive Officer of Omnicom Group Inc, said, “Global organic revenue growth of 9.5% exceeded our expectations in the fourth quarter, operating profit margins remained very strong, and we posted solid quarterly earnings per share.” He further said, “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 powerful new ways – with leading technology and data solutions – to deliver the best client outcomes in a rapidly evolving market.  We are optimistic in our 2022 outlook and expect to continue build on our long-term record of improving profitability and sustained value creation.”