Omnicom CEO John Wren reported a 0.5 percent dip in Q1 revenues to $3.4B and a 24.2 percent decline in operating profit to $353M.
He cites the negative impact of foreign currency translations and drop in acquisition revenue, net of disposition revenues for the lackluster performance.
The FleishmanHillard, Ketchum, Marina Maher Communications, Mercury, Portland and Porter Novelli-led PR group posted a 13.7 percent increase in revenues to $360.9M. Organically, it grew 14 percent.
Omnicom’s results include a $113.4M charge connected to the war in Ukraine. That write-up is primarily due to the sale or planned divestiture of its businesses in Russia.
Wren warns the global challenges stemming from the war in Ukraine, COVID-19 pandemic, rising inflation and supply chain disruptions could cause economic uncertainty and volatility.
That impact will vary by geographic market and discipline.
Wren stands ready to align Ominicom’s cost structure to meet any reduction in client spending or creditworthiness to better manage the company’s working capital.