Ad group WPP returns to growth as clients spend for the recovery

WPP, the world's biggest advertising company, said on Wednesday its underlying net sales had returned to organic growth ahead of target after clients started to spend to prepare for a global economic recovery. The group, which posted a 6.5% drop in underlying net sales in the fourth quarter, said the key figure had risen by 3.1% in the first three months of the year as clients "seek to transform their offer for future growth".

WPP, the world's biggest advertising company, said on Wednesday its underlying net sales had returned to organic growth ahead of target after clients started to spend to prepare for a global economic recovery.

The group, which posted a 6.5% drop in underlying net sales in the fourth quarter, said the key figure had risen by 3.1% in the first three months of the year as clients "seek to transform their offer for future growth". "WPP has had a strong start to the year with a return to growth in all business lines and most major markets," Chief Executive Mark Read said.

The British company, which had said it expected to return to growth in the second quarter, also won $1.3 billion of new work from companies such as Absolut and JP Morgan Chase, and reiterated its outlook for the year. Read said a recovery in Asia Pacific and stronger demand in Britain had helped to drive growth across the business, as clients spend on relaunching brands or new strategic offerings.

The positive trading follow a similarly strong improvement from French peer Publicis which also returned to organic growth for the first time since the pandemic.