• by Steve McClellan  @mp_mcclellan, February 15, 2023

Dentsu reports that the company achieved organic growth of 4.1% for full-year 2022 with 3.5% growth in the fourth quarter.

By comparison, Omnicom Group reported 9.4% full-year growth, Interpublic, 7% and Publicis Groupe, 10%.

Dentsu said it achieved growth across its regions, with continued strong demand for Customer Transformation & Technology services.

Currently the firm expects to achieve organic growth this year in the 4% range with underlying operating profit margins of 17.5%.

Dentsu said it would continue to invest in platform capability expansion to “further differentiate the Group’s client offer as well as enterprise architecture to deliver One dentsu.”

The company said it “remains confident” in medium-term targets of 4-5% organic growth through 2024, and returning to an 18% operating profit margin by then as well.

By region, Japan delivered 0.4% organic growth (compared to 17.9% in 2021). The Americas reported 6.1% organic growth. EMEA delivered 9.7% (5.1% including Russia), and APAC (excluding Japan) grew 2.5%.

The company said that growth was driven by customer transformation & technology services and a strong performance in media in its International markets.

Hiroshi Igarashi, President and CEO, Dentsu Group Inc., said the company achieved record net revenues, underlying operating profit, and earnings per share for the year.  “Our transformation continues to deliver a simplified organization with a focused strategy of growing revenues in the structural growth area of our industry, Customer Transformation & Technology.”

Asserting that the future of brand loyalty and competitive advantage will be exceptional customer experiences Igarashi added, “To deliver against this, brands must continue to invest and keep pace with an ever-changing marketplace – and ever-growing consumer expectations.”

“Together with our clients, Dentsu delivers a shared vision for how these investments will translate to customer value. Our unmatched skills in understanding consumer insights combined with strengths in consulting, creative, media, analytics, data, identity, CX/commerce, technology and loyalty ensure we can deliver growth for our clients through our integrated solutions.”