KK DENTSU GROUP

4324

Equity

ISIN JP3551520004 / Valor 1313798

Tokyo Stock Exchange (2024-11-21)

JPY 3,761.00+1.87%

KK DENTSU GROUP
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About company

KK Dentsu Group, a global entity headquartered in Japan, operates as a conglomerate with a focus on advertising and public relations. Established as a restructured entity on January 1, 2020, it succeeded the business operations of its predecessor, aiming to redefine its corporate structure from a traditional holding company to a more collaborative "teaming company." This approach emphasizes the integration and empowerment of its subsidiaries and their employees, fostering innovation and value creation across its network. The Group's business spans various domains within the advertising and communications sector, leveraging its extensive portfolio to offer a wide range of services aimed at meeting the diverse needs of its clients worldwide. By prioritizing governance and collaboration among its companies, Dentsu Group Inc. seeks to maintain its position as a leader in the global advertising industry, driving forward with a unified strategy that capitalizes on the collective strengths of its member companies.

Summarized from source with an LLMView SourceSector: Consumer Non-Cyclicals

Revenue Growth

KK DENTSU GROUP reported a net revenue of JPY 286.4 billion for Q1 FY2024, reflecting a year-over-year increase of 6.3%. However, on a constant currency basis, the revenue saw a slight decline of 1.0%. The growth was positively impacted by currency fluctuations and mergers and acquisitions, contributing JPY 18.1 billion and JPY 9.9 billion respectively.

Operating Profit

The Group's underlying operating profit for Q1 FY2024 declined by 23.6% year-over-year to JPY 29.8 billion. The operating margin also saw a decrease, falling by 310 basis points to 10.4%. This decline was attributed to lower revenue figures, but the results were in line with internal expectations and on track to meet the full-year guidance of approximately 15%.

Net Profit

KK DENTSU GROUP's underlying net profit attributable to owners of the parent decreased by 31.1% year-over-year to JPY 15.8 billion in Q1 FY2024. The statutory net profit for the same period was JPY 5.6 billion, reflecting a significant decline from the previous year. This decrease was primarily due to the fall in underlying operating profit.

Regional Performance

In Q1 FY2024, Japan reported a robust organic revenue growth of 2.4%, driven by a strong recovery in advertising and increased client spend. Conversely, the Americas saw a decline of 6.6% in organic revenue due to cyclical pressures in Customer Transformation & Technology. EMEA and APAC regions also reported declines of 9.4% and 7.1% respectively, with mixed performances across different markets.

Outlook

Looking forward, KK DENTSU GROUP reiterates its FY2024 organic growth guidance of approximately 1% and margin guidance of around 15%. The Group expects a recovery in organic growth to be weighted towards the second half of the year, supported by new client wins and the easing of existing headwinds. The Group remains confident in achieving its full-year targets.

Summarized from source with an LLMView Source

Key figures

-5.19%1Y

-6.33%3Y

-7.82%5Y

Performance

34.6%1Y

31.2%3Y

36.4%5Y

Volatility