WPP, reporting that clients are still spending in the face of an economic downturn, posted better than expected growth for 2022.
Revenue was up 12.7% to £14.429 billion in the full year to December.
Organic growth was 6.7% and the global advertising group forecasts between 3% and 5% for 2023.
In Australia, like-for-like growth was 3.3% for the full year and 2.6% in the three months to December 2022.
The results align with other holding groups. Omnicom posted organic growth of 7.2% for the December quarter, saying it is in a “very strong position” in 2023. Publicis Groupe closed 2022 with double digit growth. Dentsu posted organic growth of 4.1% for 2022.
WPP has a bullish outlook. In the full year profit announcement, CEO Mark Read said: “We enter 2023 in a strong financial position with good momentum from new business and the many opportunities ahead of us.
“While there will no doubt be challenges, the continued need for major companies to build brands, sell products, reinvent and transform their business, understand their data, invest in technology and exploit the potential of AI remains, as does their need for modern partners who can help them navigate this new world.”
Read says clients are investing in communications, customer experience, commerce, data and technology.
“The competitiveness of our offer drove net new business of $5.9 billion in 2022, including new assignments with Audible, SC Johnson, and Verizon among many others and the quality of our work was recognised at the Cannes Lions Festival of Creativity where WPP was named Creative Company of the Year,” he said.
“Our transformation is now delivering measurable results. Over the past three years, WPP has grown like-for-like net sales at a compound average rate of 3.2%, including 3.3% in North America, while improving our headline operating profit margin by 40 basis points.
“Our adjusted net debt has declined from over £4 billion at the end of 2018 to £2.5 billion, while over £3.4 billion has been returned to shareholders via share buybacks and dividends.”
Full year to December 2022:
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