Omnicom Group Inc (OMC) Q2 2023 Earnings Call Transcript

For the period ending June 30, 2023

July 18, 2023 4:30 p.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good afternoon, and welcome to the Omnicom Second Quarter 2023 Earnings Release Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. [Operator Instructions] As a reminder, this conference call is being recorded.

At this time, I'd like to introduce you to your host for today's conference, Senior Vice President of Investor Relations, Gregory Lundberg. Please go ahead.

Gregory Lundberg

Thank you for joining our second quarter 2023 earnings call. With me today are John Wren, Chairman and Chief Executive Officer; and Phil Angelastro, Executive Vice President, and Chief Financial Officer. On our website, omnicomgroup.com, we've posted a press release along with the presentation covering the information we'll review today, as well as a webcast of this call. An archived version will be available when today's call concludes.

Before we start, I'd like to remind everyone to read the forward-looking statements and non-GAAP financial and other information that we've included at the end of our Investor presentation. Certain of the statements made today may constitute forward-looking statements and these statements are our present expectations. Relevant factors that could cause actual results to differ materially are listed in our earnings materials and in our SEC filings, including our 2022 Form 10-K.

During the course of today's call, we will also discuss certain non-GAAP measures. You can find the reconciliation of these to the nearest comparable GAAP measures in the presentation materials. We will begin the call with an overview of our business from John and then Phil will review our financial results for the quarter. After our prepared remarks, we will open up the line for your questions.

And I will now hand the call over to John.

John Wren

Thank you, Greg. Good afternoon, everyone, and thank you for joining us today. We're pleased to share our second quarter results.

Organic growth was a solid 3.4% for the quarter, which was in line with our expectations. Adjusted operating income margin was also in line with our expectations at 15.1%. Adjusted diluted earnings per share for the quarter was $1.81, up 7.7% versus the comparable amount in 2022. On a constant currency basis, the increase was 8.9%.

Our cash flow continues to support our primary uses of cash, dividends, acquisitions, and share repurchases. And our liquidity and balance sheet remain very strong. We are pleased with our financial results for the quarter and first-half and are increasing our full-year organic growth target to 3.5% to 5%, and maintaining our 15% to 15.4% operating margin target. Phil will cover our results in more detail during his remarks.