When comparing its annual performance, Publicis Groupe measures the impact on reported net revenue of changes in foreign currency exchange rates, acquisitions and disposals, and organic growth. Organic growth, which represents the increase in like-for-like revenue at constant exchange rates, is calculated as follows:
The difference between the net revenue for the current year, after subtraction of the net revenue from acquisitions (net of that of divested activities), and the net revenue of the previous year (converted at the current exchange rate) is compared with the net revenue generated in the prior period to determine the percentage of organic growth.
The Groupe believes that the analysis of organic net revenue growth provides a better understanding of its net revenue performance and trends than reported net revenue because it allows for more meaningful comparisons of current period revenue to that of prior periods. Also, like-for-like revenue is generally used in the industry as a key performance indicator.
Like-for-like revenue is not audited and is not a measurement of performance, according to IFRS standards. It may not be compared with similarly titled financial data of other companies.
|
(in millions of euros) |
Total |
|---|---|
| 2020 net revenue | 2020 net revenue Total 9,712 |
| Impact of exchange rates | Impact of exchange rates Total (191) |
| 2020 net revenue at 2021 exchange rates (A) | 2020 net revenue at 2021 exchange rates (A) Total 9,521 |
| 2021 net revenue before impact of acquisitions (1) (B) | 2021 net revenue before impact of acquisitions (1)(B) Total 10,469 |
| Net revenue from acquisitions (1) | Net revenue from acquisitions (1) Total 18 |
| 2021 net revenue | 2021 net revenue Total 10,487 |
| Organic growth (B - A) / A | Organic growth (B - A) / A Total +10.0% |
(1) Net of disposals
Organic growth amounted to +10.0% in 2021. The Groupe’s net revenue thus exceeded its 2019 level by 3% on an organic basis, faster and stronger than expected.
Organic growth for each quarter in 2021 was:
