WPP has seen its fastest organic growth for over 20 years in 2021: Mark Read

WPP has announced its Preliminary Results for the year ended December 31, 2021 in which it has reported very strong growth driven by demand for digital services, e-commerce and technology; exceptional new business performance; over £1 billion returned to shareholders; and sustained momentum into 2022.

WPP has reported a 6.7% growth in its 2021 revenues at £12,801 million, compared to revenues of revenues at £12,003 million in 2020. Operating profit for 2021 stood at £1,494 million, with operating profit margin of 14.4%. Profit before tax saw a 31.1% growth to £1,365 million in 2021, compared to £1,041 million in 2020.

Strategic progress, shareholder returns and 2022 guidance

• Improving business mix: growth areas of experience, commerce and technology around 38% of revenue less pass-through costs in Global Integrated Agencies ex GroupM
• GroupM very strong: 2021 LFL revenue less pass-through costs +16.1%
• Continued investment in client offer: creation of Choreograph, acquisitions including Sard Verbinnen, Satalia, Cloud Commerce and Numerator (Kantar)
• Breadth and depth of capabilities resonating well with clients: market-leading $8.7 billion5 of net new business won, including global Coca-Cola account
• Strong recognition of creativity and effectiveness: most awarded company at the 2021 Cannes Lions Festival; ranked number one across all three WARC rankings for media, creative and effectiveness
• Transformation programme on track: around £245 million gross savings, mainly in property, procurement and simplification; good progress on shared services and IT transformation
• Final dividend of 18.7 pence proposed, up 33.6%; over £1 billion returned to shareholders in 2021 through share buybacks and dividends
• 2022 guidance: LFL revenue less pass-through costs growth around 5%; headline operating margin up around 50 bps; trade working capital expected to be flat year-on-year; £800 million share buyback, of which £129 million already completed; tax rate of around 25.5% in 2022

Commenting on WPP's performance, Mark Read, Chief Executive Officer, WPP, said, “It has been an outstanding year for WPP. Our top-line growth, driven by strong demand for our services in digital marketing, media, ecommerce and technology, has resulted in our fastest organic growth for over 20 years. As a result, we are two years ahead of our plan, hitting our 2023 revenue target in 2021.”

He further pointed out that WPP’s extensive partnership with The Coca-Cola Company, the expansion of the group’s work with Google and the continuation of WPP’s longstanding relationship with Unilever demonstrate the value that three of the world’s leading marketing organisations place in WPP.