Publicis Groupe Reports 4.9% Organic Growth in Q1 and Invests €500 Million in M&A

Publicis Groupe has reported organic growth of 4.9% for the first quarter of 2025, with net revenue rising to €3.535 billion – an increase of 9.4% year-on-year on a reported basis.

The holding company pointed to a “record new business run” with a dozen material account wins across sectors and geographies, which it said helped balance a “challenging macroeconomic backdrop” – not least the instability brought about by Donald Trump’s global tariff announcements.

While North America continued to generate the highest revenue, growth was reported across all regions. Latin America led in organic terms with a 28.3% increase, followed by double-digit growth in the Middle East and Africa. Europe and Asia Pacific posted more modest gains, with the UK and China both recording positive quarters.

The results follow a period of structural change at the Groupe. In January, Publicis announced the merger of Leo Burnett and Publicis Worldwide into a single network – simply called Leo. The move was positioned as a way to streamline creative operations and bring together complementary capabilities across two legacy agencies.

The company has also been expanding its boutique creative offer, LePub, with new outposts in New York, Bogotá, London and Dubai. The aim is to strengthen its model of combining creativity, data and tech for global brands.

Acquisitions Focus on Data, Media and AI Capabilities

Publicis invested €500 million in acquisitions during the first quarter, focusing on digital media, influencer marketing and data. Deals included Australia’s Atomic 212, Brazilian creator network BR Media Group, identity platform Lotame, and Canadian AI company Moov AI.

According to the Groupe, the acquisitions are intended to reinforce its ‘Connected Media’ and data capabilities, while extending reach in high-growth markets.

Regional and Sector Performance

North America generated €2.24 billion in Q1 revenue, with 4.8% organic growth. The US, which accounts for the majority of that figure, was up 4.1% organically. Europe grew 2.7% organically, with the UK returning to growth and France broadly flat. China posted 9.3% organic growth, continuing momentum seen in 2024.

By sector, healthcare, automotive, financial services and food and beverage each accounted for over 10% of total revenue.

Outlook for 2025

Publicis Groupe maintained its full-year forecast: organic growth of 4% to 5%, a slight margin increase on 2024’s 18% benchmark, and €1.9 to €2 billion in free cash flow.

As of March 31st, the Groupe reported €728 million in net financial debt, down from a €775 million cash surplus at year-end 2024 – driven largely by seasonality and acquisitions. Liquidity remained strong at €4.2 billion.

Publicis expects Q2 organic growth to align with first-quarter performance, suggesting a balanced financial year across both halves.