Half Year 2024 Ipsos SA Earnings Call Transcript
Key Points
- Ipsos SA (IPSOF) reported a solid organic growth of 4.7% for the first half of 2024, with a positive scope effect from recent acquisitions.
- Profitability improved significantly, with a margin of 10.1% compared to 8.7% in the same period last year.
- Free cash flow increased by nearly EUR 60 million, reaching EUR 80 million for the first half of the year.
- The EMEA region showed strong performance with 7.6% organic growth, driven by Continental Europe and the Middle East.
- Ipsos SA's digital business, particularly Ipsos Digital, experienced robust growth, with a 37% increase in the first half of the year.
- The United States market presented challenges, with a negative organic growth of 2.2%, impacted by the electoral cycle and restructuring in the pharma industry.
- The Asia-Pacific region, particularly China, showed weak growth due to an uncertain macroeconomic environment.
- The healthcare sector faced headwinds, especially in the US, due to post-COVID restructuring and lower drug approvals.
- Overall growth guidance for the year was revised down to around 3%, reflecting a slowdown in Q2.
- The company's market share in the US remains small, indicating potential challenges in gaining significant traction in the largest market.
Welcome to the 2024 Half Year Results for Ipsos, and it's good to be joined by Hugh. I'm here with my colleague, Dan Levy, our CFO, and I want to take you through where we find ourselves halfway through the year in this Olympic city of Paris. So overall, we've seen good growth at 4.7% overall organically. That is at 3.8%. And if you look at Q2, it was a little weaker, particularly at the end of Q2 at 3.1%. We have a positive scope effect because of the acquisitions that we have successfully made over the last 18 months. And those are working well and adding to our growth, but a negative FX effect at minus 1.8%. The profitability is good, 10.1% versus 8.7% for the same period last year. And we've also done well on our free cash flow, which is up nearly EUR60 million, 80 million now for the first half.
What I'd like to do now is pass over to Dan, who will take you through more detail behind some of those figures in a second. But one key thing that we need to remember is the mixed situation in the United States. Now here, organic growth is negative at minus 2.2% outside the U.S., 6.5% growth, but in
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