PARIS: Publicis Groupe, the world’s third-biggest advertising agency, forecast organic sales growth of 4% to 5% this year, after its 2021 earnings exceeded their pre-pandemic levels to reach new records.

       The French company said growth had been fuelled by its digital and data-driven businesses Sapient and Epsilon, and that it was expecting to maintain this year’s record 17.5% operating margin and €1.4bil (US$1.58bil or RM6.71bil) cash flow in 2022.

       Publicis posted organic growth of 10% reaching €10.49bil (RM50.28bil) in revenue last year, beating the 9.1% forecast by analysts in a company-provided consensus. The group’s 2022 guidance also landed above analysts’ 3% estimate.

       After spending some €300mil (RM1.43bil) last year, Publicis is planning to double its acquisitions budget to up to €600mil (RM2.8bil) as it looks to buy medium-sized firms with expertise in new digital media and first-party data.Chief executive Arthur Sadoun said the company’s 2019 acquisition of Epsilon, which has access to its own database of consumer data, had helped Publicis navigate a global shift in advertising trends as Google looks to phase out use of third-party tracking cookies.

       “Today we are able to tell our clients that with our solution, they are no longer dependant on cookies,” Sadoun said during a call.

       Sadoun added that the automotive sector – which represents 16% of Publicis sales and has been badly hit by component shortages – had cut less ad spending than expected and benefited from data that helped predict consumer demand.

       It proposed a 2021 dividend of €2.40 (RM11.50) per share and announced a salary bonus for its employees. — Reuters