Omnicom Group Inc. (OMC) Q3 2022 Earnings Call Transcript

Omnicom Group Inc. (NYSE:OMC) Q3 2022 Earnings Conference Call October 18, 2022 4:30 PM ET

Company Participants

Gregory Lundberg - Senior Vice President, Investor Relations

John Wren - Chairman & Chief Executive Officer

Phil Angelastro - Chief Financial Officer

Conference Call Participants

Steven Cahall - Wells Fargo

Jason Bazinet - Citigroup Inc.

David Karnovsky - JPMorgan

Michael Nathanson - MoffettNathanson LLC

Ben Swinburne - Morgan Stanley

Craig Huber - Huber Research Partners

Operator

Good afternoon, and welcome to the Omnicom Third Quarter 2022 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

Good afternoon. Thank you for joining our third quarter 2022 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 An archived version will be available when today's call concludes.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 would like to remind everyone to read the forward-looking statements and non-GAAP financial and other information that we have 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 2021 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, then Phil will review our financial results for the quarter. And after our prepared remarks, we'll open up the line for your questions.

I'll now hand the call over to John.

John Wren

Thank you, Greg. Good afternoon, everybody, and thank you for joining us today for our third quarter results. I'm pleased to report that in the third quarter, we continued the very strong performance we've had throughout 2022. We exceeded our expectations with organic growth of 7.5%, which was broad-based across our agencies, disciplines, regions and client sectors. Year-to-date, organic growth is 10.3%. Operating profit margin for the quarter was 15.9%, 10 basis points higher than our comparable margin in 2021. Earnings per share for the quarter was $1.77, up 7.3% versus 2021. The negative currency impact on EPS of the strong U.S. dollar was approximately 5%. On a constant currency basis, EPS would have increased approximately 12.3%. Our cash flow, liquidity and balance sheet remain very strong and continue to support our primary uses of cash, dividends, acquisitions and share repurchases. Phil will cover our financial results in more detail during his remarks.