Ipsos confirmed the acceleration of its activity in the 4th quarter of 2023 and posted organic growth of 8.8% (after -2.8% in the 1st quarter, 0.5% in the 2nd quarter and 4.3% in the 3rd quarter), meeting its guidance for the year.
Organic growth for the 2023 financial year therefore reached 3% (4% excluding the impact of COVID contracts ending). The operating profit remained stable at an all-time high of 13.1%, demonstrating the Group’s ability to maintain its profitability in a challenging macroeconomic and geopolitical context.
The 4th quarter revenue amounts to 714.7 million euros, up by 4.8%. For the year, it reaches 2,389.8 million euros, down 0.6% due to unfavorable exchange rate effects (-3.9%) which more than offset the organic growth (3%) and perimeter effects (0.3%).
Ben Page, CEO of Ipsos, says: “We improved in 2023 despite economic headwinds, proving the resilience of Ipsos’ model. Thanks to our geographic spread, our multi-sectoral approach, client portfolio and new technology, we can feel confident as we step into 2024.
“Combined with the talent and commitment of our teams, these strengths are exactly what we need to keep responding to new client needs and seizing new growth opportunities,” Page added.
PERFORMANCE BY QUARTER 2023 vs 2022
From the 3rd quarter onwards, activity in the EMEA region was free from unfavourable base effects caused by the end of major Covid contracts, and it showed excellent momentum with organic growth of 11.2% in the final quarter.
Annual organic growth of 4.1% was largely driven by Continental Europe, where countries like France and Belgium reported excellent results. Activity in the Americas showed organic growth of 1.7% in 2023.
This reflects a contrasting reality between the strong performance of Latin America (above 8%) and lower growth in North America (close to 1%). The United States was affected by the significant decline in demand by major Tech clients.
However, we did see a gradual improvement in demand from these clients over the final quarter. This trend remains to be confirmed in 2024, primarily with new opportunities offered by generative AI.
Overall, the final quarter in the Americas showed organic growth of over 7.5%, both in North and South America. Lastly, the Asia-Pacific region posted organic growth of around 5.5% for the quarter and 3.5% for the full year.
With no tangible economic recovery in China following the end of the Zero-COVID policy, Ipsos’ activity in the country stagnated, which hindered performance for the entire region. Conversely, India and South-East Asia maintained their momentum with double-digit growth rates.
Ipsos’ activities with consumers showed very strong momentum both in the 4th quarter (+12.8%) and throughout 2023 (+7.1%). This reflects excellent performance from its business lines with regard to brand health tracking, marketing spend optimization and market positioning activities, as well as its qualitative work.
Solid performance in the consumer goods sector also helped maintain the high level of activity in this segment. Ipsos’ activity with clients and employees was stable throughout the year.
Customer experience and mystery shopping surveys recorded strong performance, even if this audience segment was adversely affected in 2023 by the drop in demand from major Tech clients.
Ipsos’ activity with citizens was down 5%, due mainly to major COVID contracts ending. Its business relating specifically to the public sector other than COVID contracts performed well and posted organic growth of more than 8%.
Finally, Ipsos’ activity with doctors and patients continued on its path of improvement throughout 2023, with organic growth of 9% in the 2nd semester, of which 12% was achieved in the final quarter.
Initially affected early in the year by shifts in decision-making from certain clients in the pharmaceutical industry, this activity did regain its momentum. One example in particular was Ipsos’ high addedvalue services offering, as well as its solutions for targeting and segmenting patients and prescribers.
