M&C Saatchi Reports Strong 2024 Results Amid Ongoing Transformation
Why we think this is good
M&C Saatchi's 2024 results demonstrate resilience and progress in a challenging economic environment. The company achieved a 3.7% increase in like-for-like net revenue, driven by strong 6.7% growth in Non-Advertising Specialisms. Profitability improved with a 5.2% increase in like-for-like operating profit and a 6.1% rise in basic earnings per share. The company's adjusted net cash position strengthened significantly, up 84% to £15.3 million. Client retention remains robust at 92%, with over 140 new business wins. However, the Advertising segment saw a modest decline of 1.9%, and there are ongoing challenges in some markets, particularly Australia and the UK. The company's transformation process, while showing early success, carries some execution risk. Despite these challenges, M&C Saatchi expects to meet market expectations for 2025, indicating confidence in its strategy. The balanced performance across different specialisms and regions, combined with improved financial metrics, suggests a positive trajectory, albeit with awareness of ongoing macro volatility.
Key Points
- Like-for-like net revenue grew 3.7% to £231.0m
- Non-Advertising Specialisms revenue increased by 6.7%
- Like-for-like operating profit up 5.2% to £35.2m
- Operating margin improved to 15.2% from 15.0%
- Adjusted net cash up 84% to £15.3 million
- Client retention strong at 92% of 2023 revenue
- Over 140 new business wins in 2024
- Advertising segment saw a 1.9% decline
- Challenges persist in Australian and UK markets
- Ongoing transformation shows early success but carries execution risk
- Company expects to meet market expectations for 2025
Summary
M&C Saatchi's 2024 results show resilience and progress in a challenging environment. Like-for-like net revenue grew 3.7% to £231.0m, driven by 6.7% growth in Non-Advertising Specialisms. Operating profit increased 5.2% to £35.2m on a like-for-like basis, with operating margin improving to 15.2%. The company's adjusted net cash position strengthened by 84% to £15.3m. Client retention remains strong at 92%, with over 140 new business wins. However, the Advertising segment saw a 1.9% decline, and challenges persist in some markets. The ongoing transformation, while showing early success, carries execution risk. Despite these challenges, M&C Saatchi expects to meet market expectations for 2025, indicating confidence in its strategy. The company's diversified portfolio and improved financial metrics suggest a positive trajectory, albeit with awareness of ongoing macro volatility.