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Investing.com -- Publicis Groupe (EPA:PUBP) on Tuesday posted a 9.4% rise in first-quarter revenue, driven by 4.9% organic growth and a series of major client wins that helped offset a volatile global economic backdrop.
The French advertising and public relations company reported net revenue of €3.54 billion for the first quarter of 2025, up from €3.23 billion a year earlier.
Currency effects contributed €65 million to the total, while acquisitions, net of disposals, added €78 million.
All regions reported organic growth, with Latin America leading at 28.3%, followed by the Middle East and Africa at 11.5%, Asia Pacific and North America both at 4.8%, and Europe at 2.7%.
In North America, which generated €2.24 billion in net revenue, the United States saw 4.1% organic growth, supported by gains in Connected Media and Intelligent Creativity.
Technology services declined slightly due to cautious client spending. Europe delivered €827 million in revenue, with the UK posting growth in media and creative services, while France remained flat and Central and Eastern Europe saw double-digit organic growth.
Asia Pacific recorded €286 million in revenue, with China growing 9.3% organically, benefiting from new media accounts.
The Middle East and Africa brought in €103 million, and Latin America generated €84 million. Currency depreciation, particularly in Argentina, reduced reported growth in Latin America to 15.1%.
Healthcare represented the largest client sector, contributing 15% of net revenue. Several key sectors, including automotive, financial services, and food and beverage, each accounted for 13%. The remaining revenue was derived from telecom and media, consumer products, and retail.
Publicis invested €500 million in mergers and acquisitions during the quarter, targeting digital media, influencer marketing, and data.
This included the acquisitions of Atomic 212 in Australia, BR Media Group in Brazil, Lotame in the U.S., and Moov AI in Canada.
As of March 31, net financial debt stood at €728 million, compared with a net cash position of €775 million at year-end 2024.
The company’s average net debt over the past year was €672 million. Liquidity remained strong at €4.2 billion.
Publicis reaffirmed its full-year guidance for organic growth between 4% and 5%, with expectations of balanced performance across both halves of the year.
The company also projected a slight increase in its operating margin, which stood at 18% in 2024, and forecasted free cash flow between €1.9 billion and €2 billion before changes in working capital.