LLYC will double its business in a three year span reaching 130 million in operating income
LLYC S.A. has approved ‘Committed to Innovation and Growth‘, a strategic plan that will set the company’s course for the next three years. In this period, the company intends to double in size and become a more technological, international and egalitarian firm.
The communications, digital marketing and public affairs consultancy aims to surpass €130 million in operating revenues (total revenues minus re-invoicing of client expenses) in 2025. That figure would represent an 80% growth in turnover (€72.7 million in 2022), with EBITDA of €27 million in 2025 (+68% versus 2022) and maintaining a margin of 21%.
The Deep Digital unit holds a crucial role for LLYC as an area capable of integrating all of the firm’s artificial intelligence, digital transformation and inbound marketing service lines and solutions. The target for 2025 is to represent half of the company’s operating revenues, exceeding €60 million, thanks to the promotion of paid media and performance services, including programmatic advertising. Also to the implementation of CommsTech in all specialty areas, transforming the offering and increasing efficiency for clients.
In the words of José Antonio Llorente, Founding Partner and President of LLYC: “We are committed to innovation and growth. The targets we set ourselves are again ambitious, but we have always proven that we deliver what we promise”.
“The firm is on solid foundations to successfully tackle the strategic plan we have set ourselves. We aim to be a larger, more technological, international and egalitarian firm in three years’ time, driven by the efforts of our professionals and the trust of our clients”, says Luisa García, Partner and Global COO at LLYC.
In the words of Alejandro Romero, Partner and Global CEO of LLYC: “The deal we have just closed in the United States, through the acquisition of BAM, is an example of where we want to take the company in the next three years. We are a benchmark in Latin American communications and we want to be a reference in the English-speaking world as well”.
€40 million for growth in key markets
The recent acquisition of BAM allows LLYC to double its size in the United States, where the firm aims to surpass €20 million in sales in three years. The company is also evaluating opportunities to establish itself in Canada, a country relevant to extractive companies, a sector in which LLYC has extensive experience. Mexico and Brazil are poised for the greatest growth in Latin America due to their potential for continued development. Within the EU, the consultancy firm will continue to focus on the European affairs area and will study the possibility of opening its own office in Brussels.
In the period 2023–2025, LLYC intends to allocate around €40 million for new acquisitions. Investments will be made in companies that allow the firm to continue increasing its access to exponential technologies, those that add to the growth target in the United States and those that reinforce the firm’s leadership in public affairs, without discarding high value-added opportunities that may complement the solutions portfolio.
Client-centric to drive organic growth
LLYC will attune its business proposition to the needs and challenges of clients to remain #clientcentric. Consolidation will address marketing and corporate affairs offerings (particularly concerning ESG, public affairs, corporate and financial communications, and crisis and risk management). LLYC also expects to double client turnover in two industries: socio-health (with a special focus on the pharmaceutical sector) and extractive economies, especially in Latin America.
Annual RD&I investment of one million euros
LLYC expects to invest €3 million by 2025 (€1 million per year) for Research, Development and Innovation (RD&I). These resources will largely be focused on the development of data-based solutions for the purposes of anticipation, strategy design and the measurement of results in marketing, communication and public affairs. The company will also continue leveraging advances in AI and expects to have automated up to 30% of its processes by the end of 2025.
This investment is complementary to the €5 million endowment to LLYC Venturing, which will continue identifying and investing in startups implementing exponential technologies in LLYC disciplines.
A diverse team, an equal and inclusive company
LLYC’s expected turnover growth should match its increased investment in talent. The firm aims to hit 2,000 collaborators by 2025 (+66% versus year-end 2022) with gender equality (50% of management positions held by women) and recognition across all operations as a best place to work LGTBIQ+.
The ‘LLYC formula’, which already promotes hybrid and offshore work models, will be complemented by a new office design adapted to this hybrid model, as well as additional flexibility and work-life balance measures.
The firm will implement a plan to reinforce the Group’s ESG policy to deepen its social and environmental commitments. Through the LLYC Foundation, it will continue backing initiatives that not only generate social and environmental value but also foster democracy, through the dedication of volunteers from over 30% of our LLYCERS. The company will also enact a supplier code of ethics to ensure that collaborators only work with companies that adhere to basic criteria and standards on conduct. More ambitious environmental targets will be pursued to reduce the carbon footprint per employee and in different critical work processes for clients (e.g. audiovisual production or travel), in addition to promoting work with clients aimed at taking action against climate change.
You can learn more about the 2023–2025 Strategic Plan by attending the webinar scheduled for May 4 at 18 h. You can drop in via the following link.
The main topics will be addressed by LLYC’s José Antonio Llorente (Founding Partner and Chairman) Alejandro Romero (Partner and Global CEO) and Luisa García (Partner and Global COO).