Omnicom Group Inc announced results for the quarter and full year ended December 31, 2021.
The worldwide revenue in 2021 continued to improve from the negative effects of the COVID-19 pandemic. Total revenues increased 8.5% to $14,289.4 from $13,171.1 in 2020. The components of the change in revenue included an increase in revenue from organic growth of 10.2%, a decrease in acquisition revenue, net of disposition revenue, of 3.9%, and an increase in revenue from the positive impact of foreign currency translation of 2.2%.
The company’s organic growth in 2021 compared to 2020 increased across all of their fundamental disciplines, including: 10.7% for Advertising, 19.0% for Precision Marketing, 9.9% for Commerce & Brand Consulting, 27.0% for Experiential, 4.2% for Execution & Support, 6.3% for Public Relations and 4.0% for Healthcare.
Organic growth in 2021 compared to 2020 across the regional markets was as follows: 8.1% for the United States, 11.7% for Other North America, 8.8% for the United Kingdom, 13.6% for the Euro Markets & Other Europe, 13.7% for Asia Pacific, 9.4% for Latin America and 26.4% for the Middle East & Africa.
The Operating expenses increased $519.2 million, or 4.5%, to $12,091.5 million compared to 2020, including a 2.1% increase from the impact of foreign currency translation.
The operating profit increased $599.1 million, or 37.5%, to $2,197.9 million compared to 2020, and our operating margin of 15.4% increased from 12.1%.
Commenting on the financial results, 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.”
“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 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 to build on our long-term record of improving profitability and sustained value creation,” Wren added.
