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WPP’s profits fade as client cuts and AI bets reshape strategy
Ad giant posts 5.4 per cent LFL sales drop, cuts dividend and jobs, bets on AI turnaround.
MUMBAI: It appears the world’s largest advertising group has found that even the best pitch cannot always sell a difficult set of results. WPP’s 2025 preliminary results reveal a year where the creative juices were flowing, but the cash followed a somewhat more sluggish current.
The headline figures suggest that WPP spent much of 2025 swimming against a persistent tide. Like-for-like (LFL) net sales, which are defined as revenue less those pesky pass-through costs, slipped by 5.4 per cent. The group attributed this slide to a double whammy of client losses and client spending cuts, particularly in the final quarter where the chill was felt most acutely.
Reported revenue stood at £13,550 million, which was down from £14,741 million in 2024, while headline operating profit took a 22.6 per cent tumble to £1,321 million. This left the headline operating margin at 13.0 per cent; this was a drop from the 15.0 per cent seen the previous year and was driven largely by negative operating leverage and the costs associated with saying “goodbye” to staff.
No corner of the globe was entirely immune to the slowdown. The UK saw a LFL net sales decrease of 7.6 per cent, while North America dipped by 4.6 per cent. China proved a particularly tough market with a sharp 14.3 per cent decline, though India offered a rare silver lining with growth of 3.8 per cent.
Sector-wise, the pain was most visible in Telecom, Media and Entertainment, where spending cratered by 10.1 per cent. Consumer Packaged Goods (CPG) also tightened the purse strings and was down 7.1 per cent. Conversely, Healthcare & Pharma remained a healthy outlier, as it grew by 2.1 per cent.
In response to the squeeze, WPP has been busy reorganising the furniture. Structural savings are being wrung from the mergers that created VML and Burson, alongside a simplification of WPP Media. Headcount has been trimmed significantly; it fell from approximately 108,000 to 99,000.
The company also took a massive £641 million hit on goodwill impairment, which was primarily linked to its Ogilvy and AKQA brands; this reflected a more cautious outlook on their carrying value.
Despite the tightening of belts, WPP is not skimping on the future. Investment continues to pour into “WPP Open”, its AI-driven operating system, as the group bets big on data and generative technology to regain its edge.
However, the immediate horizon remains a bit misty. Guidance for 2026 suggests that LFL revenue less pass-through costs will continue to decline by mid to high-single digits in the first half of the year. While an improving trajectory is expected in the second half, investors are being asked for a fair amount of patience.
The dividend has also felt the pinch, with the total payout for the year slashed to 15.0p from 39.4p in 2024. For now, it seems WPP is focused on making its own brand more efficient before it can get back to winning over the rest of the world.
MAM
Joy Personal Care launches Hydra Refresh Gel summer campaign
Sanya Malhotra fronts TVC promoting 48-hour non-sticky hydration.
MUMBAI: Joy Personal Care just gave summer a cool new twist because when the heat is on and your skin is begging for relief, even the gel knows how to stay refreshingly light. Joy Personal Care, part of RSH Global, has rolled out a new summer television campaign for its Hydra Refresh Gel, featuring brand ambassador Sanya Malhotra. The campaign positions the lightweight, non-sticky formula as the perfect everyday solution for intense heat and fast-paced lifestyles, promising up to 48 hours of moisture.
The TVC depicts a relatable moment of heat-induced skin fatigue on a sweltering day. Sanya Malhotra appears with a refreshing presence, introducing the gel as a quick, comfortable fix that transforms discomfort into a feel-good experience. The narrative blends humour and realism, reinforcing the product’s ease of use and relevance during summer.
RSH Global co-founder and chairman Sunil Agarwal said, “As India braces for soaring temperatures and an intense summer ahead, the need for skincare that delivers effective, non-sticky hydration becomes even more relevant. Hydra Refresh Gel is designed to meet this need with a lightweight formulation that fits seamlessly into everyday routines.”
RSH Global chief marketing officer Poulomi Roy added, “While drinking more water is important, it doesn’t always translate into visible results on the skin. This campaign builds on that insight, bringing the product’s effectiveness to the forefront in a relatable way.”
Sanya Malhotra shared, “Working with Joy Personal Care has always been a truly enjoyable experience. What I really enjoy about the product is how effortlessly it fits into everyday routines, especially during the summer when your skin needs hydration without feeling heavy.”
The campaign, marking the product’s television debut, will be amplified across digital and social platforms to drive wider engagement during the summer season.
In a season where the sun shows no mercy, Joy Personal Care isn’t just selling a gel, it’s offering a cool, dependable companion that keeps skin happy without the sticky aftermath, proving that sometimes the best way to beat the heat is to keep things refreshingly simple.
