Dentsu Group released their FY2021 consolidated financial results ahead of guidance and reported operating profit is up 44% and organic growth of 13.1%.
The global advertising group reported a net profit for the entire group increased 56.2% to A$132.5 billion (JPY109.2 billion). This recovery comes after it recorded a $1.33 billion (JPY140.6 billion) loss back in 2020.
The group reported record-high revenue less cost of sales(LCoS), record-high underlying and statutory operating profit and a record dividend at JPY 117.5.
Organic growth in APAC – excluding Japan – in FY2021 was 4.7% and 3.8% in Q4 FY2021, according to the report
The results also noted that the Australian market saw “good growth in all three service lines as the impact from the refreshed management team is beginning to show, growing 12.1% over the last 12 months and 20% in Q4.
Growth was also driven by strong performances in Singapore 24% and Indonesia 20.8%.
In the forecast for the year ahead, Dentsu Group forecasts Group organic growth of 4% in FY2022, Dentsu Japan Network at 2% to 3% and Dentsu International 4% to 5%.
The fourth quarter revenues came in ahead of expectations due to increased spend from existing clients across the group with consumer confidence growing as the effects of the pandemic subside.
Forecast of Consolidated Financial Results for the FY2022 (IFRS) The Dentsu Group forecasts organic growth at 4% for FY2022, with Dentsu Japan Network at 2 to 3% and Dentsu International 4 to 5%.
The group also forecasts underlying operating margin at 17.7% with Dentsu Japan Network at 22% and Dentsu International flat year-on-year at 15.9%.
Hiroshi Igarashi, president and CEO of Dentsu Group Inc., said: “In 2021 Dentsu Group reported record high revenue (less cost of sales); record underlying and statutory operating profit and a record dividend at JPY 117.5. This performance is testament to the return to growth in our industry, the cyclical recovery in advertising as well as continued investment clients are making in commerce & experience.”
“We remain confident in the long-term growth outlook for the Group and upgrade our medium-term targets. We look for Dentsu Group to deliver 4 to 5% organic growth CAGR (2022:2024) from a target of 3 to 4% previously.”
“With the strong recovery in 2021 we will look forward in 2022 and beyond to unlock even more value within the Group, leveraging our competitive positioning, our strong product offering and the 65,000 talented individuals within the organization,” he added.