Financials
Publicis Groupe’s H1 profit drops down 17 per cent, exchange rates impact numbers
MUMBAI: With the slowdown of global economic activity since the start of the year and economic uncertainties prevailing in several regions of the world, Publicis Groupe has announced that its second-quarter performance was well below that of the first quarter. The company saw a 16.9 per cent fall in first-half net profit to Euro 260 million as compared to the Euro 313 million in the corresponding half of the previous calendar year-2013.
Due to the substantial impact of the strong Euro (Euro 81 million negative impact in Q2 alone), the Group’s reported consolidated revenue for Q2 2014 was Euro 1,761 million, down 1.5 per cent as compared to the Euro 1788 million in H1 Q2 2013.
The group says that organic growth of just 0.5 per cent was largely due to unfavourable comparable (+5.0 per cent in Q2 2013), but also to the persistent weakness of certain markets and investments on the part of a number of clients who substantially downsized their budgets.
In a statement published on the group’s official website, Publicis Groupe chairman and CEO Maurice Lévy said, “The first half-year was heavily impacted by exchange rates which had an adverse effect on revenue of Euro 148 million. At constant exchange rate, revenue would have increased by close to 5 per cent during the period.
As we predicted last fall, growth stalled in the second quarter. However, it should be underscored that weakness was stronger than expected mostly due to the cancellation or postponement of campaigns and lagging economies in Europe and in emerging countries. Our organic growth was +1.8 per cent for the first half-year. Our margin remained strong, though fractionally down, as a result of accounting treatments and lagging growth.”
Lévy conceded, “These figures are not satisfactory by our standards. They are not consistent with what our operations can achieve. As can be seen from our digital growth (+8.8 per cent) or the numerous awards from various juries (Gunn Report, Gartner and an impressive haul of awards at the Cannes International Festival), our strategy is spot-on and our networks are at the cutting edge of the industry. For the second part of the year, we can confirm that we are already on track for higher growth, and this should be evident as of the third quarter.”
“Given the situation in Europe and the slow pick-up in the emerging economies, we prefer to be extremely cautious on growth prospects and prioritize cost control in order to achieve a margin closer to our goal for the full year.
Although 2014 will be a difficult year, it does not undermine our mid-term prospects. Our business plan between now and 2018, as announced on 23 April 2013, is currently being revised to factor in market developments and the investments required reaching our transformation goals ahead of schedule. The strong feedback from our entities leaves us very confident about achieving all our goals,” he concluded.
It was in May 2014 when Publicis Groupe and Omnicom Group have called off their $35 billion merger. Levy then in a statement mentioned, “The decision to discontinue the process was neither pleasant nor an easy one to make, but it was a necessary one.” Experts believe the deal failed majorly because of tax issues.
Four regions contribute to Publicis Groupe’s revenue- Europe excluding Russia and Turkey, North America, BRIC + MISSAT (Mexico, Indonesia, Singapore, South Africa and Turkey), and the rest of the world.
The group says that Europe (excl. Russia and Turkey) remained negative overall (-0.3per cent), while all the other regions reported growth in the first half-year. North America recorded growth of +2.8 per cent, and continues to show resilience.
The BRIC and MISSAT countries achieved growth of +0.4 per cent though the good performances of Russia (+5.9 per cent), Mexico (+10.3 per cent), Turkey (+2.5 per cent) and Singapore (+7.2 per cent) were overshadowed by the Greater China region’s slower-than-expected return to high growth (+1.4 per cent) and by negative growth in Brazil (-0.6 per cent). India’s -14.7 per cent adversely affected the BRIC group. The economic slowdown observed since mid-2013 in emerging countries has had a significant impact on advertising investments. The rest of the world, which includes Australia and Japan, reported growth of +5.6 per cent.
On 30 January 2014, Publicis Groupe acquired a major stake in Indian based advertising agency Law & Kenneth. In an unprecedented move, Law & Kenneth took over the Indian operations of Saatchi & Saatchi and now is called L& K Saatchi & Saatchi. During the first half of the year, the holding company’s BBH India won the creative mandate of Viber (India) and Piaggio Vehicles’ Vespa (India), while Leo Burnett India added MAA TV to its kitty.
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MUMBAI: It’s time to brief the markets: Page Industries is showing that even when regulations tighten, it can still keep its footing in the innerwear business. The Bengaluru-based apparel major has reported its financials for the quarter ended 31 December 2025, delivering a performance that remains steady and well put together.
The company’s top line showed plenty of elasticity this quarter. Revenue from operations stretched to Rs 1,38,675.71 lakhs, a healthy jump from the Rs 1,29,085.82 lakhs reported in the preceding quarter. Compared to the same period last year, which stood at Rs 1,31,305.10 lakhs, it’s clear the brand’s grip on the market isn’t loosening. Total income for the quarter, including other finance gains, reached a comfortable Rs 1,39,919.03 lakhs.
However, it wasn’t all smooth silk. The Government of India’s new unified Labour Codes, covering everything from wages to social security, officially kicked in on 21 November 2025. This regulatory shift forced Page Industries to account for a one-time “exceptional item” cost of Rs 3,500.42 lakhs to cover incremental employee benefits and related obligations. Despite this Rs 35-crore legislative snag, the underlying business remained robust. Profit before tax stood at Rs 25,625.35 lakhs after the exceptional hit, and without that one-off cost, the figure would have been a more muscular Rs 29,125.77 lakhs. Net profit for the quarter came in at Rs 18,953.64 lakhs.
Total expenses rose to Rs 1,10,793.26 lakhs, driven largely by raw material consumption of Rs 30,162.65 lakhs and employee benefits of Rs 23,310.66 lakhs. Even so, the company’s operational strength ensured the bottom line remained firmly stitched together.
For shareholders, the news is particularly “fitting.” The Board has declared a third interim dividend for 2025-26 of Rs 125 per equity share. The record date has been set for 11 February 2026, with the payment scheduled on or before 6 March 2026. This follows two previous interim dividends of Rs 150 and Rs 125 declared earlier in the financial year, reinforcing the company’s commitment to sharing the spoils of its success.
Looking at the nine-month stretch ending December 2025, Page Industries has amassed total income of Rs 4,04,090.59 lakhs, with total comprehensive income of Rs 58,231.49 lakhs. While the basic earnings per share for the quarter dipped slightly to Rs 169.93, compared to Rs 183.48 in the same quarter last year, the year-to-date EPS remains a solid Rs 524.57.
Auditors at S.R. Batliboi & Associates LLP have given the results a “limited review” thumbs up, reporting no material misstatements. It seems that, as far as Page Industries is concerned, the business remains as well-constructed as its famous Jockey briefs.
