Omnicom Group Inc. (NYSE:OMC) stock rose 5.67% (As on Apr 20, 11:22:29 AM UTC-4, Source: Google Finance) after the company beaten the earnings estimates for the first quarter of FY 22. Net income for the first quarter of 2022 decreased 39.6%, to $173.8 million compared to the first quarter of 2021. EBITA in the first quarter of 2022 decreased $112.9 million, or 23.3%, to $372.4 million compared to the first quarter of 2021.  Our EBITA margin of 10.9% decreased from 14.2%.  EBITA and EBITA margin decreased primarily as a result of the charges arising from the effects of the war in Ukraine of $113.4 million, which reduced EBITA margin by 3.3%. Excluding the charges incurred in connection with the effects of the war in Ukraine, adjusted EBITA of $485.8 million increased 0.1%, and the adjusted EBITA margin was 14.2%. Operating profit decreased 24.2%, to $353.0 million compared to the first quarter of 2021, and the operating profit margin of 10.4% decreased from 13.6%, primarily as a result of the charges incurred in connection with the effects of the war in Ukraine of $113.4 million, which decreased the operating margin by 3.3%.

OMC in the first quarter of FY 22 has reported the adjusted earnings per share of $1.39, beating the analysts’ estimates for the adjusted earnings per share of $1.28. The company had reported 0.5 percent fall in the adjusted revenue to $3.4 billion in the first quarter of FY 22. The components of the change in revenue included a decrease in revenue from the negative impact of foreign currency translation of 2.5%, a decrease in acquisition revenue, net of disposition revenue, of 9.9% principally in the Advertising & Media discipline in the United States, and an increase in revenue from organic growth of 11.9%.

Organic growth in the first quarter of 2022 compared to the first quarter of 2021 increased across all of the fundamental disciplines, including: 9.1% for Advertising & Media, 20.3% for Precision Marketing, 13.8% for Commerce & Brand Consulting, 68.0% for Experiential, 6.3% for Execution & Support, 14.0% for Public Relations and 7.7% for Healthcare.

On the other hand, during the first quarter of 2022, the war in Ukraine required the company to suspend the business operations in Ukraine. The war resulted in the imposition of sanctions by the United States, the United Kingdom, and the European Union that affect the cross-border operations of businesses operating in Russia.