Dentsu Reports 3.7% Drop In Organic Revenue For Q1 FY24

Dentsu reported a 3.7 per cent drop in its organic revenue in the first quarter of 2024. “India is still impacted by the annualisation of client losses in media from Q2 2023,” said the press release while reporting the quarterly results for the first quarter of 2024. 

Despite losing major media clients like Reckitt and Maruti Suzuki in 2023, Dentsu India's recent client acquisitions in India and China have yet to influence revenues. Over the past year, Dentsu India has secured accounts including BharatBenz (creative and media), Welspun (media), Meesho (media), Berger Paints (media), Motorola India (creative), Skore condoms (creative), Aditya Birla Capital (creative), among others.

Alongside, the company won accounts with Popeyes India, Gemini Edibles and Fats, Welspun, Torren Pharmaceuticals, Gulf Oil and Berger Paints among others in the recent past.

"In 2024, focus remains on internal investments and returning the Group to growth. The Group continues to accelerate the shift to One dentsu to create a unified global network, further integrating the group's diverse capabilities," said the company.

The Group experienced a decline in organic growth of 3.7 per cent with its underlying operating profit decreasing by 23.6 per cent year-on-year (YoY). Additionally, its underlying net profit, attributable to owners of the parent, fell by 31.1 per cent YoY to JPY 15.8 billion, primarily due to the decrease in underlying operating profit.

Hiroshi Igarashi, President and Global CEO, Dentsu Group said, “The first quarter delivered an organic revenue decline of -3.7 per cent, in line with our internal forecasts and leaving us on track to deliver our guidance of c. 1 per cent organic growth for the full year 2024.”

“Our confidence comes from a stronger outlook in the second half of the year. The Group will benefit from momentum in client wins, yet to impact revenues, from cycling out of accounts lost in 2023 and a significant easing of comparables,” he added.