MAM
Havas Q3 revenues grow 10.6% year-on-year
MUMBAI: French media communications agency Havas has reported a 10 per cent rise in its revenues in the third quarter ended 30 September to €428 million from €387 million a year earlier.
The group‘s organic growth was 2.0 per cent in the third quarter and 2.5 per cent for the first nine months of the year. Revenues from new businesses in the third quarter were €304 million, which includes new clients, clients retained after a competitive review, and new product or brand expansions for existing clients.
The Asia Pacific and Africa region grew at 11.8 per cent with India and China being the forerunners in the growth. The region witnessed a number of significant new wins in this period like Tata Motors in India, Playstation and Study Adelaide in Australia, Sugon and YFY Investment in China. Danone opted for Havas digital agencies in Melbourne and Kuala Lumpur.
Havas CEO David Jones said, “The macro-economic environment continues to be challenging. Notwithstanding, the Group‘s organic growth in North America, Latin America and Asia-Pacific increased in the third quarter, and we continued to generate healthy net new business. Not surprisingly, Europe slowed in Q3 though the Group continued to gain market share in the region, reflecting our competitive strength in this market. Digital continues to accelerate and is an increasingly important driver of the business.”
In September Havas rebranded 316 of its creative agency Euro RSCG Worldwide offices to Havas Worldwide to underscore the group‘s unique integrated structure.
Havas said growth slowed across the whole of Europe in the third quarter. France declined slightly in the third quarter due to a limited number of clients reducing spend. The UK, too, was down slightly as last year‘s loss of certain accounts continued to affect this quarter, although the losses have now been almost entirely offset by new wins.
Performance in the rest of Europe was mixed, with growth driven by Belgium, Italy, Ireland, Germany and Russia in particular, plus a return to growth for Spain. The performance delivered by BETC London, a start-up launched just over a year ago, deserves special mention, as do recently acquired agencies such as Boondoggle and Creative Lynx.
The growth rate for North America accelerated in the third quarter, a particularly pleasing performance given the high comparative base in Q3 2011.
Double-digit growth in Havas‘ Asia-Pacific operations was driven mainly by China and India, with all business lines contributing to this strong performance.
Havas said growth in Latin America accelerated considerably and continues to deliver solid performance, driven mainly by digital, media, advertising and healthcare communication. Brazil in particular delivered strong performance in the region.
Brands
Jubilant FoodWorks faces Rs 47.5 crore GST demand, plans appeal
Tax authorities flag alleged misclassification of restaurant services
MUMBAI: Jubilant FoodWorks Limited has landed in a tax tussle after receiving a GST demand of Rs 47.5 crore from the office of the additional commissioner of CGST and central excise in Thane, Maharashtra.
The order, issued under the provisions of the Central Goods and Services Tax Act, 2017, relates to an alleged incorrect classification of certain services under the category of restaurant services. According to the tax authorities, this classification resulted in a short payment of goods and services tax for the period between the financial years 2019-20 and 2021-22.
The demand includes Rs 47.5 crore in GST along with an equal amount as penalty, in addition to applicable interest. The order was received by the company on March 13, 2026.
In a regulatory filing to the BSE Limited and the National Stock Exchange of India Limited, the company said it disagrees with the order and believes its arguments were not adequately considered.
The company is preparing to challenge the decision and plans to file an appeal. It added that once the redressal process is complete, the demand is likely to be dropped.
Despite the sizeable figure attached to the notice, the company said it does not expect any material impact on its financials, operations or other activities.
The disclosure was signed by Suman Hegde, EVP and chief financial officer, who confirmed that the company received the order at 19:06 IST on March 13 and has already initiated steps to contest it.
The development places the quick service restaurant major in the middle of a tax debate that could hinge on how certain restaurant-linked services are classified under GST rules. For now, the company appears ready to take the matter from the tax office to the appeals desk.
