WPP: 2023 results in line with expectations

(CercleFinance.com) - On the occasion of its CMD (investor day), WPP said it intends to make structural savings in order to generate annualized net savings of around £125 million in 2025, of which 40-50% should be realized in 2024.


WPP will publish its 2023 results on February 22, and already expects to report results in line with forecast ranges.

WPP expects 2023 sales to grow by 0.9% (within the range of +0.5 to +1% expected), with an overall operating profit margin of 15% at constant exchange rates.

For 2024, WPP is targeting sales growth of between 0 and 1%, with an improvement in overall operating margin of 20 to 40 basis points (excluding currency impact).

' Our long-standing investments in AI and our 2021 acquisition of Satalia, one of the UK's leading AI companies, are at the heart of our competitive offering. Ongoing annual investment of £250 million in data and technology to support our AI strategy is included in our 2024 financial plans', says Mark Read, WPP's director.

' Although we faced a more challenging environment in 2023, we anticipate strong future demand for our services and are confident that we can accelerate our growth over the medium term', he adds.

Over the medium term, precisely, WPP is targeting like-for-like sales growth of over 3% with an overall operating profit margin of 16-17%.


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