Dentsu Group expects high single digit growth for FY21

Dentsu Japan Network grew by 12% and Dentsu International registered a growth of 17%.

Dentsu Group has announced its results for the first half as well as the second quarter of 2021, indicating a rebound in performance. For the quarter ended June, Dentsu Group reported organic revenue growth of 15%. Dentsu Japan Network grew by 12% while Dentsu International registered a growth of 17%. “Operating margin improvement continues to exceed expectation, substantially ahead of the prior year, with Q2 improving by 370 basis points year on year, showing the gearing effect of higher revenue together with cost reductions being implemented,” the group said in its earning statement.

Dentsu Group delivered a strong second quarter performance, reflecting the growing consumer and client confidence we see across all regions, Toshihiro Yamamoto, president and CEO, Dentsu Group Inc., said. “Underlying profit growth continues to be strong, exceeding our expectations, and demonstrates our commitment to our margin targets,” he added further.

For H1, 2021, the group’s revenue less the cost of sales increased by 5.6% on a constant currency basis with underlying operating profit up by 35.9%. Japan’s organic growth was at 4.5%. APAC (excluding Japan) recorded a growth of 3.6%. The APAC region reported double digit growth in the second quarter driven by double digit growth from Australia, Indonesia, South Korea, Singapore and Thailand. EMEA reported 8.7% organic growth in H1, FY21, and 22% in Q2, FY21.

“Whilst the future path of the pandemic remains uncertain, our full year guidance confirms our confidence in the outlook for the second half of FY2021, as well as our ability to meet our medium-term targets by 2024,” Yamamoto stated.

The Group expects high single digit organic growth for FY2021, with a line of sight to delivering the long held 2022 margin targets of 20% for Dentsu Japan Network and 15% for Dentsu International one year early, implying a Group margin improvement of 160 basis points year on year, it added in the statement.

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