Fixing the foundations for growth

dentsu’s H126 results and the new CEO’s updated mid-term management plan point to a business in transition. Japan continues to perform strongly, and cost reductions are supporting profit and internal investment; however, organic growth across the international business remains weak. Against this backdrop, management has reset the mid-term plan around simplifying the group, restoring profitability and financial strength, and concentrating investment to where Dentsu has a competitive advantage to rebuild organic growth. The key questions remain, particularly, whether Dentsu can restore competitiveness in international markets and turn structural cost savings into higher profitability. Achieving the new mid-term financial targets, which although below where some peers are currently operating, would be helpful for its valuation.

25 August 2025

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