Ipsos has released its financial figures for the first quarter of 2022. For the first quarter of FY22, the company generated revenue of €547.8 million.
Their firm grew by 17.9% in 2021 thanks to good financials. Despite the current global upheaval, the company expanded 17.5 percent in Q1 2022 compared to Q1 last year, with 12.3 percent organic growth. Currency effects had a 4.3 percent positive influence, owing to the rise of the dollar and pound sterling. The purchases of the technology company Infotools, a platform specialising in research data reporting, and Karian & Box, an expert in the field of employee relations analysis, in the second half of 2021 resulted in scope effects of +0.9 percent.
The increase in activity between 2020 and 2022 demonstrates Ipsos’ significant growth, with a growth rate of 27.8% overall and 28.6% at constant rate and scope. When using the most recent pre-covid financial year as a reference, Ipsos’ increase is equally impressive. In this example, total growth is 29.8 percent, whereas organic growth is 29.2 percent.
Due to headwinds from the Ukraine conflict, our EMEA business organic growth slowed to 5%. However, because Russia and Ukraine account for only 2% of annual revenues, it had little impact on the company’s overall performance. In 2021, the firm witnessed major lockdowns in Asia-Pacific, but despite China’s Zero Covid policy, the company has seen double-digit growth in the region this year, with 15 percent organic growth in Q1. As a result of improved coordination and the adoption of best practices across their businesses, new leadership in the United States and ongoing great performances in Latin America experienced 22 percent growth.
In comparison to Q1 2020 and Q1 2019, the citizens category has grown organically by 39 percent and 52 percent, respectively. As governments grapple with how to deal with the cost-of-living crisis in many countries, the need to act on climate change while involving citizens and voters, and a wide range of public policy challenges posed by ageing populations and new technologies, the underlying business for this segment continues to grow strongly.
Profitability, on the other hand, is up from the first quarter of 2021 and in line with the year’s goals. The amount of free cash flow generated from operations has also increased, and it is in line with forecasts. The company announced the acquisitions of WeCheck, a Canadian mystery shopping firm, and a minority position in CIESMORI, a Bolivian company, both of which will be accounted for in Q2 2022. On March 31, 2022, the net debt to equity ratio was 4.4 percent, down from 13.4% on December 31, 2021 and 19.9% on March 31, 2021. With €420 million in cash and around €300 million in undrawn bank facilities, the company has enough liquidity.