Financial Roundup: Major Marketers, Agencies, Media
Global (calendar H1)
The world's sixth largest marketing services group by global billings reported an 0.6% rise in organic revenues for the first half of 2003, despite a slippage of nearly six percent at its US units.
Overall revenue for the six-month period fell to €750 million ($903.82m; £495.44m), compared year-on-year to €836m. The current figure, however, reflects the adverse impact of exchange rates which mask the marginal organic increase.
The lackluster stateside performance reflects a number of substantial account losses in the second half of 2003 at Euro RSCG Worldwide, Havas' main agency network.
The European operations fared better with "very satisfactory" growth in Q2. In its own backyard the French group achieved a sparkling 8.8% organic growth.
Commented chairman/ceo Alain de Pouzilhac: "Less than a year after the strategic reorganization, the figures for the first half demonstrate that we are on the right track, both in terms of growth and profitability."
Havas is one of a number of potential bidders circling Grey Global Group [WAMN: 27-Jul-04].
Global (fiscal Q4)
Procter & Gamble
The world's largest advertiser enjoyed a barnstorming fiscal fourth quarter, with profit soaring 44% to $1.37 billion (€1.14bn; £750.97m) compared with $955m in the year-earlier period, when the company was hit by $261 million in restructuring charges.
Sales rose 19% to $12.96 billion, exceeding analysts' consensus forecast of $12.86 billion. Excluding acquisitions (notably Germany haircare group Wella) and divestitures, organic sales rose 10%. P&G also benefited from the weak US dollar, which boosted income by 3%.
A key measure for fmcg companies such as P&G is volume, which rose 18% -- or 10% excluding acquisitions and divestitures.
"It sounds like the P&G train keeps chugging along, particularly relative to what we've heard thus far from other consumer products companies," observed CIBC World Markets analyst Joseph Altobello.
Data sourced from multiple origins; additional content by WARC staff