Omnicom posts 3.8% organic growth in Q1

OmnicomThe strength of the U.S. dollar continued to suppress revenue growth at Omnicom Group in the first quarter: revenues worldwide were up just 0.9% to about $3.5 billion. The company said currency fluctuations in the first quarter cost it about $97 million in top line growth. Organic growth, which excludes the impact of currency fluctuations, acquisitions and asset sales, was better — up 3.8% globally and 4.5% in the North America market, which accounts for 61% of the company’s business.

Net income at the firm — holding company for numerous advertising and marketing shops, including BBDO, DDB, OMD and PHD — was up 4.4% to $218.4 million. On a conference call with investors Tuesday, Omnicom executives said that so far the firm is on track to hit its profit, margin improvement and organic growth goals for the full year. The organic growth target is 3% to 3.5% while the company hopes to improve operating profit margin for 2016 by about 0.3% (that was achieved in the first quarter).

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