(News Bulletin 247) – The survey research group is under pressure after having once again lowered its growth target on a comparable basis for the current year. Its 2024 operating margin forecast is maintained.

The year 2024 is definitely one to forget for Ipsos. The investor opinion survey specialist’s rating is at its lowest after a series of disappointments in financial performance. This Wednesday, the stock dropped nearly 11%, around 11:20 a.m., the second largest drop on the Parisian market behind Eramet which suffered from a downward revision of its production targets for two of its mines.

The specialist in market research and opinion polls, like the mining group, launched an alert on its annual objectives ahead of the announcement of its quarterly publication. It lowered its growth forecast on a comparable basis for the current year, in a press release soberly titled “update of 2024 outlook”.

Same effects same consequences

In the third quarter, Ipsos expects to achieve a turnover of 591 million euros, an increase of 0.5% based on published data. But on a comparable basis, activity is down by 0.1%. Which marks a clear slowdown compared to the previous quarter (+3.8% like-for-like), and the third quarter of 2023 (+4.3% like-for-like).

The group explains that it achieved “organic growth in the third quarter that was lower than expected” and which “does not offer any prospect of a significant rebound by the end of the year”.

Ipsos claims to be achieving solid growth in Continental Europe, the Middle East and Latin America, but this is not enough to offset the headwinds in the other geographic regions where the group is established. Particularly in the United States, where the company is still suffering from a complicated context, due to “the hazards linked to the presidential election and the restructuring of the pharmaceutical sector” the group indicated last July.

Ipsos has also observed a slowdown in its activity since the beginning of the summer in France and in certain Asian countries, “due to macroeconomic and political uncertainties”.

The company adds that it launched a new strategic review at the beginning of September, “Horizons 2030”, the conclusions of which will be presented before the summer of 2025.

New income warning

In this context, management is adjusting its like-for-like growth target for 2024 downwards once again this year.

The group anticipates an annual organic growth objective of around 1%, when in July the company expected like-for-like growth close to that of last year (+3%). Which was already a warning. In April, Ipsos still forecast like-for-like growth of over 4% and was still hoping for a rebound in activity in the United States in the second half.

However, the group still intends to end the year 2024 with an operating margin of around 13% thanks to “good discipline” in the management of its costs.

Ipsos will reveal a more detailed analysis of its activity when it publishes third quarter revenue on October 24.