Global advertising, media and marketing giant WPP saw its shares dive 8% today after it released its half year results, in which it raised its full year sales forecast.
Revised sales forecast
WPP said it now expects like-for-like net sales to grow 6%-7% in 2022, up from an already upgraded forecast of 5.5%-6.5%.
Like-for-like revenue was up 8.7% to £6.75 billion for the half year and headline pretax profit rose 12% to £562m.
However, WPP’s shares tumbled as the company’s revised sales outlook was not as high as some investors were expecting.
Commenting on the half year figures, Mark Read, Chief Executive Officer of WPP, said: “We have enjoyed a strong first half, with broad-based growth across our creative, media and public relations businesses.
“This reflects the improved competitive position of our creative businesses, with their growing capabilities in commerce, experience and technology, our continued strength in media and the resurgence in demand for strategic communications advice from our public relations agencies.
“Our services are business-critical – driving growth, building brands, innovating and helping clients navigate an increasingly complex marketing environment.
“As major advertisers increasingly look to integrate their marketing investments, we are well positioned to serve the world’s largest companies, demonstrated by our success with Coca-Cola, which we are now onboarding at pace.
“Our commitment to creativity was recognised at Cannes Lions in June where WPP was awarded the most creative company, recognising the quality of our work in all areas, spanning film, digital, media, commerce and creative business transformation.
“It’s a testament to our investment in creativity and the talent of our people, and I am committed to making WPP the most creative company in the world.
“Our clients are continuing to invest in WPP’s services, which reflects our attractive industry exposure in technology and healthcare, our broad global footprint, and the importance of what we do for their businesses.
“The actions we have taken over the last four years leave WPP much better positioned with a more uncertain economic environment ahead.”
WPP’s shares were down just over 7% at £8.29 each on Friday morning following the report.