News

WPP PLC: Strong Profit Margin Growth Expected

1 Mins read

WPP PLC, the London-based advertising and marketing company, has raised its medium-term operating profit margin guidance and expressed confidence in meeting full-year results.

Upgraded Profit Margins

WPP now anticipates a medium-term headline operating profit margin of 16.0%-17.0%, surpassing previous guidance of 15.5%-16.0% set in 2020.

Revenue Growth Projections

The company has also revised its projections for revenue growth, expecting more than 3% growth in revenue less pass-through costs over the medium-term, compared to prior guidance of 3%-4%.

Outlook for 2023

WPP remains optimistic about its performance in 2023, expecting growth in like-for-like revenue less pass-through costs of 0.9%, outperforming previous guidance of 0.5%-1.0%. The forecasted headline operating profit margin for 2023 is 14.8%, or 15.0% on a constant currency basis.

Future Prospects

Looking ahead to 2024, WPP predicts a growth range of 0%-1% in like-for-like revenue less pass-through costs. Additionally, the company aims to achieve a headline operating profit margin improvement of 20-40 basis points, excluding foreign exchange effects.

Strategic Approach

WPP emphasizes its disciplined approach to capital allocation as the foundation of its future business strategy. This approach includes continued organic investment, a progress dividend policy, and a thoughtful approach to mergers and acquisitions.

The Chief Executive, Mark Read, expressed confidence in the company’s ability to navigate challenging market conditions and accelerate growth over the medium-term.

Related posts
News

Banking Regulations for Preventing Failures

2 Mins read
Banking regulators have the power to prevent future bank collapses, according to a panel of banking experts who emphasized the importance of…
News

Dave's Strong Q4 Performance

1 Mins read
Shares of Dave surged on Tuesday following the digital bank’s announcement of a profitable fourth quarter earlier than expected, with a positive…
News

DaVita Expands in Latin America

1 Mins read
Shares of DaVita reached record levels as the kidney care services company announced its significant expansion into Latin America through a $300…

Leave a Reply

Your email address will not be published. Required fields are marked *

+ 25 = 29