ITV

Tag: Q2 FY25

  • Publicis Groupe smashes expectations with blistering 5.9 per cent organic growth

    Publicis Groupe smashes expectations with blistering 5.9 per cent organic growth

    PARIS: Publicis Groupe delivered a scorching second quarter that left competitors in the dust, posting 5.9 per cent organic growth that significantly outpaced expectations and cemented its position as the industry’s standout performer.

    The French advertising behemoth’s net revenue hit €3.6bn in Q2, up 4.6 per cent on a reported basis, whilst organic growth accelerated to 5.9 per cent – well ahead of the company’s five-year compound annual growth rate of 4.9 per cent for the quarter.

    Chairman & chief executive Arthur Sadoun didn’t mince words about the performance: “In a tough macroeconomic environment, Publicis had a very strong Q2 ahead of expectations,” he said, highlighting an “outperformance versus competition once again, of 800 basis points.”

    The stellar quarter was underpinned by what Sadoun called an “unprecedented new business run” of over a dozen material wins in the first six months of 2025, prompting the company to raise its full-year organic growth guidance to close to five per cent, up from the previous four to five  per cent range.

    Every major region delivered solid growth in Q2, with north America posting 5.8 per cent organic growth (5.3 per cent in the US), Europe climbing 4.6 per cent, and Asia Pacific surging 5.7 per cent. Latin America was the standout with a blistering 19.8 per cent organic growth.

    The company’s integrated model proved its worth in North America, where connected media and intelligent creativity drove “very solid growth,” whilst technology posted slight positive organic growth despite delayed capex spending across the IT consulting industry.

    Perhaps most impressively, Publicis managed to expand its operating margin to a record 17.4 per cent in the first half whilst sustaining significant investments in artificial intelligence, talent acquisition, and new business development.

    First-half net revenue reached €7.2bn, up 6.9 per cent, with organic growth of 5.4 per cent. Headline diluted earnings per share rose 3.8 per cent to €3.51, whilst free cash flow before working capital changes jumped 11.3 per cent to €828m.

    The company has been on a targeted acquisition tear, snapping up seven companies in the first half including Lotame’s identity solutions, Captiv8’s influencer technology platform, and Australia’s Atomic 212º media agency. These deals are designed to bolster Publicis’s AI-led capabilities and strengthen its “category of one” positioning.

    Despite ongoing global economic uncertainty, Publicis maintained its industry-high financial targets for 2025, expecting operating margins slightly above 18 per cent and free cash flow of around €1.9bn.

    “We are uniquely positioned to continue to win market share by bringing clients the immediate business solutions they need to grow in an uncertain global context,” Sadoun declared, signalling the company’s confidence in its ability to outmaneuver rivals in a disrupted industry.

    The results underscore Publicis’s transformation from traditional advertising agency to an integrated marketing technology powerhouse, with its data-driven approach and AI capabilities proving increasingly attractive to clients navigating digital disruption.

    With 108,000 professionals across over 100 countries, Publicis appears well-positioned to maintain its momentum through the remainder of 2025, despite anticipated client spending reductions in the second half.

  • SBI Life stumbles in Q2 FY25: Premium growth falters amid market uncertainty

    SBI Life stumbles in Q2 FY25: Premium growth falters amid market uncertainty

    Mumbai: As SBI Life Insurance’s latest financial results cast a shadow over its once-steadfast growth, policyholders may be left wondering: Who will secure your family’s future when you’re no longer around? The insurer’s Q2 FY25 report, covering the quarter ending 30 September 2024, reveals a tale of contrasting fortunes. While renewal premiums held their ground, first-year and single premiums faltered, pointing to headwinds that could challenge the resilience of one of India’s largest life insurers.

    In Q2 FY25, SBI Life’s renewal premium surged to Rs 11,72,120 lakhs, up from Rs 10,12,113 lakhs in Q2 FY24, reflecting the company’s strength in retaining policyholders. However, first-year premiums amounted to Rs 4,91,567 lakhs, a marginal increase compared to Rs 4,63,332 lakhs in the same period last year, indicating slower new customer acquisition. The single premium, a critical contributor to income, saw a notable decline, down to Rs 3,77,629 lakhs from Rs 5,42,136 lakhs, suggesting that customers may be hesitant to make large one-time insurance investments amid economic uncertainties.

    This subdued performance in single premiums highlights a key area of concern for the insurer. As global and domestic markets face volatility, customers may have opted for lower-risk, shorter-term products over substantial long-term investments, impacting SBI Life’s overall premium growth. The company’s net income stood at Rs 52,942 lakhs, up from Rs 38,019 lakhs, despite the challenges in premium growth.

    On a positive note, the company’s solvency ratio remained stable at 2.04 per cent, above the regulatory minimum of 1.5 per cent, showcasing its ability to meet policyholder obligations even in challenging times. Additionally, SBI Life’s expense management ratio rose slightly to 10.57 per cent, reflecting increased operational costs, which may put pressure on profitability in future quarters if not addressed.

    SBI Life, company secretary, Girish Manik stated, “Despite market challenges, we are committed to sustaining long-term growth by focusing on improving renewal premiums and maintaining a healthy solvency margin.” The company’s decision to keep expenses under tight control and further diversify its product offerings could be pivotal as it navigates the evolving financial landscape.

    The persistency ratios (percentage of customers renewing policies) remained robust across different timeframes, with the 13-month ratio at 84.16 per cent, suggesting SBI Life continues to foster customer loyalty even as it faces pressure in attracting new policyholders.

    One of the more troubling figures is the decline in new business, particularly in the individual life segment. With first-year premiums stagnating and single premiums sharply falling, SBI Life may need to revise its product strategies, particularly in response to changing customer preferences for more flexible and lower-risk options.

    At the same time, the insurer’s investments performed admirably, providing a buffer against premium-related shortfalls. Investment income for policyholders’ funds without unrealised gains stood at 8.26 per cent for non-linked policies, a slight uptick from the previous quarter, ensuring that SBI Life can continue to offer competitive returns to its policyholders.

    As India’s insurance market grows increasingly competitive, SBI Life’s focus on sustaining renewal premiums and improving operational efficiency will be crucial in reversing the downward trend in new business premiums. The company has already shown resilience, but it may need to adapt more swiftly to market forces in order to achieve consistent growth.

  • Tata Consumer Q2 FY25: Revenue rises, profit margins face cost pressures

    Tata Consumer Q2 FY25: Revenue rises, profit margins face cost pressures

    Mumbai: Amidst an evolving landscape in the fast-moving consumer goods (FMCG) sector, Tata Consumer Products Limited (TCPL) Q2 FY25 results paint a picture of growth tempered by cost challenges. The company’s revenue from operations surged by 13 per cent year-over-year to Rs 4,214.45 crores, driven largely by a stronger performance in the non-branded business segment and international markets. However, cost inflation, particularly in tea prices, and rising finance costs weighed on profitability, leading to a 16 per cent drop in profit before exceptional items and tax to Rs 424 crores.

    The results were significantly influenced by recent acquisitions, including the integration of Tata Coffee Limited and other subsidiaries. While these strategic moves aimed to bolster the company’s portfolio, they also contributed to higher finance and amortisation expenses, impacting margins. “Our focus remains on navigating cost pressures while accelerating growth across key markets,” said Tata Consumer Products, MD & CEO, Sunil D’Souza.

    The company reported an exceptional expense of Rs 27.17 crores for legal, professional fees, and restructuring costs related to these acquisitions, marking an increase from Rs 14.55 crores in the same period last year. Despite these headwinds, a one-time tax credit of Rs 74 crores on the merger of subsidiaries helped support the bottom line, resulting in a consolidated net profit of Rs 367.21 crores, a modest 1 per cent improvement compared to Q2 FY24.

    The Indian branded business segment faced notable pressure, with a 2 per cent growth largely offset by tea cost inflation. Conversely, the international branded and non-branded segments exhibited stronger performance, with growth rates of 5 per cent and 19 per cent, respectively. The non-branded business, which includes plantations and extractions, achieved a notable revenue increase to Rs 462.28 crores. The segment’s profitability improved substantially to Rs 106.13 crores, reflecting better commodity price realisation and efficiency gains.

    Tata Consumer’s recent amalgamations, including Tata SmartFoodz and Tata Coffee, have reshaped its business structure, aiming for operational synergies. The restructuring has also brought significant changes to the company’s debt profile. The debt-to-equity ratio has climbed from 0.09 in Q2 FY24 to 0.14, signalling a rise in leverage due to acquisition-related financing.

    The company’s earnings before interest, tax, depreciation, and amortisation (EBITDA) margin slipped from 12.71 per cent in Q2 FY24 to 11.39 per cent, as cost pressures from raw materials and acquisition expenses weighed heavily. “We are focused on cost mitigation initiatives while ensuring that we invest in our brands and strategic priorities,” D’Souza added.

    Looking ahead, Tata Consumer aims to balance growth with cost containment, particularly in managing the impact of raw material inflation. The FMCG giant is also eyeing expansion in high-potential markets while consolidating its position in core categories.