Another record year on all KPIs
Confident for 2024
- Full year 2023 net revenue organic growth at +6.3% with stronger than expected Q4 at +5.7%
- Industry-leading financial ratios: 18.0% operating margin rate; headline EPS up +10% at €6.96; adjusted free cash flow at €1.7bn1
- #1 rank in new business over the last 5 years2
- 2023 proposed dividend at €3.40 per share, fully paid in cash
-
Confident in outperforming in 2024, despite macroeconomic challenges:
- Organic growth expected at +4% to +5%
- Operating margin rate at 18%
- Free cash flow between €1.8 and €1.9bn
FY 2023 Results
|
FY 2023 |
2023 vs 2022 |
|
14,802 |
+4.3% |
|
13,099 |
+4.2% |
|
+6.3% |
|
|
2,363 |
+4.3% |
|
18.0% |
- |
|
6.96 |
+9.5% |
|
€1.7bn1 |
Q4 2023 Revenue
|
3,540 |
|
+2.3% |
|
+5.7% |
________________________________
1 Free cash flow (FCF) before change in working capital requirement.
Reported 2023 FCF at €1,547M when including net cash impact for Rosetta settlement of €148M.
2 JP Morgan rankings 2019 – 2023.
“In a very challenging macroeconomic context, and after 6 years of transformation, Publicis definitely extracted itself from the packin 2023.
Our +6.3% net revenue organic growth for the full year, coming after a stronger than expected end to the year at +5.7% in Q4, means that not only are we substantially outperforming our holding company peers, we are also growing twice as fast as the main IT consulting firms.
What is true for organic growth is also true for our financial KPIs, be it on margin or on free cash flow.
At a moment when our clients need partners that can truly help them transformin a challenging and ever-changing environment, our unique model has made the difference, allowing us to significantly gain market share and rank first in new business for the fifth year in a row.
With a reported revenue of close to
Entering 2024, we feel confident in sustaining this momentum, just as we’ve done for the last four years with a +4.7% CAGR, twice the industry average. We anticipate delivering +4 to +5% organic growth while maintaining our historically high operating margin at 18%. When it comes to Q1, we expect to significantly outperform the industry with an organic growth within our full year guidance.
I would like to thank of our clients for their trust during this transformation journey and our people for their outstanding efforts. Thanks to all of them, we have reached new heights as a group, and are now in a position to face what will be another year of uncertainties with confidence and ambition.”
Publicis Groupe’s Supervisory Board met on
EUR million, except per-share data and percentages |
FY 2023 |
FY 2022 |
2023 vs 2022 |
||
Data from the Income Statement and Cash flow Statement |
|
|
|
||
Net revenue |
13,099 |
12,572 |
+4.2% |
||
Pass-through revenue |
1,703 |
1,624 |
+4.9% |
||
Revenue |
14,802 |
14,196 |
+4.3% |
||
EBITDA |
2,845 |
2,801 |
+1.6% |
||
% of Net revenue |
+21.7% |
22.3% |
- 60 bps |
||
Operating margin |
2,363 |
2,266 |
+4.3% |
||
% of Net revenue |
18.0% |
18.0% |
0 bps |
||
Operating income |
1,740 |
1,767 |
-1.5% |
||
Net income attributable to the Groupe |
1,312 |
1,222 |
+7.4% |
||
Earnings Per Share (EPS) |
5.23 |
4.87 |
+7.4% |
||
Headline diluted EPS1 |
6.96 |
6.35 |
+9.6% |
||
Dividend per share2 |
3.40 |
2.90 |
+17.2% |
||
Free cash flow before WC requirements |
1,547 |
1,807 |
|
||
Underlying free cash flow before WC requirements3 |
1,802 |
1,700 |
|
||
Data from the Balance Sheet |
|
|
|||
Total assets |
36,716 |
35,898 |
|
||
Groupe share of Shareholders’ equity |
9,788 |
9,635 |
|
||
Net debt (net cash) |
(909) |
(634) |
|
________________________________
1 Net income attributable to the Groupe, after elimination of impairment charges, real estate consolidation charge, amortization of intangibles arising on acquisitions, the main capital gains (or losses) on disposals, change in the fair value of financial assets, the revaluation of earn-out costs, divided by the average number of shares on a diluted basis.
2 To be proposed to the shareholders at the AGM of
3 Adjusted for the net impact of the Rosetta settlement for
NET REVENUE IN FY 2023
Publicis Groupe’s net revenue for the full year 2023 was
Organic growth was +6.3% in FY 2023 versus 2022. Compared to 2019, this implied organic growth of +21%, accelerating in H2 at +22% after +19% in H1.
The Groupe’s strong and consistent performance in 2023 was reflected in each and every of its unique capabilities.
Media, one third of revenue, grew double-digit on top of double digits last year, benefitting from both market shares gains and organic growth at existing clients. Data and tech activities, another third of revenue, posted a very solid growth overall. On the one hand, despite a context of slowdown in digital business transformation experienced by comparable consulting firms, Publicis Sapient achieved a solid +3.2% organic growth on top of a very high comparable base of +19% in FY 2022. On the other hand, Epsilon’s performance accelerated in the second half of the year, posting +9.6% organically in FY 2023, supported by a sustained high demand in first-party data management. Creative, the remaining third, showed its resilience with organic growth in the low-single digits for the year.
Breakdown of FY 2023 net revenue by sector
Segments | vs 2022 comp in % |
Automotive |
5% |
Financial |
0% |
Healthcare |
14% |
Food and beverage |
19% |
TMT |
-3% |
Non Food consumer products |
2% |
Retail |
7% |
Public sector and other services |
15% |
Leisure & travel |
11% |
Energy & manufacturing |
14% |
Breakdown of FY 2023 net revenue by region
EUR |
Net revenue |
Reported |
Organic |
||||
million |
FY 2023 |
FY 2022 |
growth |
growth |
|||
|
8,050 |
7,869 |
+2.3% |
+4.9% |
|||
|
3,172 |
2,879 |
+10.2% |
+10.3% |
|||
|
1,156 |
1,176 |
-1.7% |
+2.9% |
|||
|
380 |
359 |
+5.8% |
+12.4% |
|||
|
341 |
289 |
+18.0% |
+8.9% |
|||
Total |
13,099 |
12,572 |
+4.2% |
+6.3% |
In
Net revenue in
The
In
________________________________
1 Excluding Outdoor Media activities & the Drugstore.
NET REVENUE IN Q4 2023
Organic growth was +5.7% in Q4 2023, ahead of the Groupe’s upgraded guidance in
Media, one third of revenue, accelerated to double-digit growth in Q4, supported by a solid ramp up in new business. Data & tech activities, another third, saw contrasted trends like in Q3. Epsilon, on the one hand, posted a second consecutive quarter of double-digit growth, led by the high demand for 1P data. As anticipated, Publicis Sapient saw ongoing delays in DBT projects, like all comparable IT consulting firms, leading to a slight organic decline in Q4. Creative was again resilient in Q4, with low-single digit growth.
Breakdown of Q4 2023 Net revenue by region
EUR |
Net revenue |
Reported |
Organic |
||||
million |
Q4 2023 |
Q4 2022 |
growth |
growth |
|||
|
2,158 |
2,133 |
+1.2% |
+6.0% |
|||
|
851 |
814 |
+4.5% |
+4.3% |
|||
|
318 |
323 |
-1.5% |
+4.0% |
|||
|
106 |
104 |
+1.9% |
+9.7% |
|||
|
107 |
88 |
+21.6% |
+13.9% |
|||
Total |
3,540 |
3,462 |
+2.3% |
+5.7% |
________________________________
1 Excluding Outdoor Media activities & the Drugstore
Net revenue in
Net revenue in the
In
ANALYSIS OF FY 2023 KEY FIGURES
Income Statement
EBITDA amounted to
Personnel costs totaled
Non-personnel costs amounted to
-
Other operating expenses (excluding pass-through costs, depreciation & amortization) amounted to
1,740 million euros , compared to1,560 million euros in 2022. This represented 13.3% of net revenue in 2023 compared to 12.4% in 2022. -
Depreciation and amortization expense was
482 million euros in 2023, versus535 million euros in 2022, a reduction of 10% or53 million euros . It reflects the consolidation of our real estate footprint as well as an increase in the share of SaaS platforms used by the Groupe and directly expensed.
The operating margin amounted to
Operating margin rates by region were 19.0% in
Amortization of intangibles arising from acquisitions totaled
In addition, net non-current income is negative at
Operating income totaled
The financial result, comprising the cost of net financial debt and other financial charges and income, was a charge of
-
The cost of net financial debt was an income of
78 million euros in 2023 compared to a charge of17 million euros in 2022. It included99 million euros of interest largely related to Epsilon’s acquisition debt (102 million euros in 2022), partly mitigated by financial income of178 million euros , improving from85 million euros in 2022, largely reflecting higher remuneration on cash balances. -
Other financial income and expenses were a charge of
99 million euros in 2023, notably composed by79 million euros interest on lease liabilities and 1 million in income from the fair value remeasurement of Mutual Funds. In 2022, other financial income and expenses were a charge of100 million euros , notably composed of87 million euros interest on lease liabilities and 9 million in income from the fair value remeasurement of Mutual Funds.
The revaluation of earn-out payments amounted to an income of
The income tax charge was
The share in profit of associates was an income of
Minority interests were a gain of
Overall, net income
attributable to the Groupe was
Finally, the Groupe’s earnings per share was
Free cash flow
EUR million |
FY 2023 |
FY 2022 |
|
EBITDA |
2,845 |
2,801 |
|
Financial interest paid (net) |
93 |
(17) |
|
Repayment of lease liabilities and related interests |
(423) |
(404) |
|
Tax paid |
(669) |
(430) |
|
Other |
(121) |
51 |
|
Cash flow from operations before change in WCR |
1,725 |
2,001 |
|
Investments in fixed assets (net) |
(178) |
(194) |
|
Reported free cash flow before changes in WCR |
1,547 |
1,807 |
|
TCJA transitional cash tax related to 2022 paid in |
107 |
(107) |
|
Rosetta settlement |
148 |
- |
|
Underlying free cash flow before changes in WCR1 |
1,802 |
1,700 |
The reported Groupe’s free cash flow, before change in working capital requirements, was
This included two main non-recurring cash outflows.
-
TCJA, for a net impact of
107 million euros: InJanuary 2023 , the Groupe proceeded to an additional107 million euros cash payment related to 2022 fiscal year (110 million euros at 2022 USD/EUR exchange rate), reflecting the implementation of the Tax Cuts and Jobs Act in theU.S. (TCJA) that was confirmed lateDecember 2022 . This change in tax legislation requires companies to capitalize and amortizeU.S. R&D expenses over five years and has no impact on effective tax rate. Including this additional payment, the free cash flow for the Groupe was1,700 million euros for 2022. -
Rosetta settlement, for a net impact of
148 million euros . Adjusted for this settlement, the free cash flow for the Groupe was1,695 million euros for 2023, in line with the guidance of the Groupe of close to1.7 billion euros .
Financial interests were an income of
________________________________
1 Adjusted for the net impact of the Rosetta settlement for
Repayment of lease liabilities and related interests amounted to
Tax paid amounted to
Net debt
The Groupe reported a net cash position of
GROUPE AI STRATEGY
On
In a presentation hosted by
Held at the centre of the Groupe, CoreAI unifies and standardizes Publicis’ expansive bank of proprietary data and combines this with 35 years of business transformation data and coding owned exclusively by Publicis Sapient. CoreAI makes these assets shareable and accessible to everyone across the Groupe, empowering them across five key disciplines: Insight, Media, Creative and Production, Software and Operations.
Publicis plans to invest
The Groupe began engineering CoreAI in the second half of 2023 and plans to iteratively roll out capabilities in the first half of 2024. It will present MVPs at Viva Tech in
ACQUISITIONS AND DISPOSALS
On
On
On
On
On
On
OUTLOOK
While the macroeconomic context remains uncertain as we enter 2024, the Groupe is confident in its ability to deliver profitable growth that outperforms the market.
For the full year 2024, the Groupe aims at delivering a 4% to 5% organic growth. Publicis intends to achieve a solid +4% despite the macroeconomic challenges that currently affect classic advertising and delay business transformation projects. Organic growth could reach +5% assuming an improvement in global conditions in the second half of the year.
In Q1 2024, the Groupe expects to deliver organic growth within the full year range.
The Groupe expects to maintain financial ratios again in 2024 at historical highs, including:
- Operating margin at 18%. This includes the Groupe’s Opex investment of
- Free cash flow between 1.8 and
CASH ALLOCATION
Based on its free cash flow prospects and on its strong financial structure, the Groupe has set the following cash allocation for 2024:
- Dividend for a total of close to
- A share repurchase plan of circa
- An envelope for selective M&A between 700 and
________________________________
1 Before change in working capital requirements.
GROUPE CSR POLICY IN 2023
With a view to the entry into force in 2025 of the European CSRD (Corporate Sustainability Reporting Directive), which requires companies to carry out in-depth sustainability work, in 2023
CSR was one of the themes discussed with employees at the fourth
E – Environment & the fight against Climate Change
The Groupe's climate targets, validated by SBTi (Science Based Targets Initiative), outline a trajectory to reduce carbon emissions by 50% by 2030 (Near-Term Target - Scopes 1+2+3) and by 90% by 2040 (Long-Term Target - Scopes 1+2+3). The Groupe remains aligned with the Paris Agreement and the 1.5° scenario, and continues to focus all its efforts on drastically reducing carbon emissions. In terms of direct-source renewable energies, the Groupe is making progress towards its target of 100% by 2030, having reached the 2023 milestone at over 50%.
Reducing all environmental impacts remains the absolute priority, and various initiatives have been launched to strengthen direct and indirect action levers. In view of the residual unavoidable carbon emissions, and to anticipate the Groupe's future needs to achieve Net Zero by 2040,
Following on from the work carried out in 2022 on climate risks, an ad hoc project was carried out in 2023 to analyse the impact on biodiversity, with the support of an external consultancy.
S – Social, Diversity, Equity and Inclusion
The end of 2023 was marked by the
By the end of 2023, the international #WorkingWithCancer programme launched by the Chairman of the Directoire to combat the taboo of cancer in the workplace had been signed up by 1,500 companies, representing 40 million employees worldwide.
The Groupe's objective of having 45% women in key positions of responsibility within the Groupe by 2025, with a target of 43% by 2023, has been achieved. In
In terms of training, the Marcel Classes platform has stepped up its personalised support for employees with the Growth Dashboard. In
The #WorkYourWorld internal programme, which enables employees to work for six weeks in a country or city of their choice, continues to be very popular in 2023: more than 2,500 employees have taken advantage of it (bringing to more than 4,000 the number of trips made since the programme was launched in
The 19th Global Meeting of the
G – Governance, Business Ethics and Responsible Marketing
A.L.I.C.E (Advertising Limiting Impacts & Carbon Emissions), the Groupe's proprietary tool for assessing the impact of customer campaigns and projects, has been enhanced to refine the calculations for the Groupe's different businesses, and has been certified e-accessible. In 2023, this calculator was used for +250 brands/customers in 30 countries. At the same time, the Groupe is continuing to take part in various sectoral projects, both nationally and internationally, in particular those led by Ad Net Zero, aimed at standardising the methodologies used to calculate the carbon footprint of our businesses, particularly the media.
The Groupe's objective remains to advance professional practices and standards in favour of inclusion and the reduction of environmental impacts. The level of maturity of French agencies is an example of mobilisation; Publicis France maintains its leading position with 11 agencies certified as 'RSE Active' by the French interprofessional body in partnership with Afnor.
In
Business ethics issues are an integral part of the Groupe's businesses and the aim is to train all employees to maintain our high standards in fundamental areas detailed in our
In terms of external ESG ratings,
NEW BUSINESS
Krafton (Influence), Intuit (Creative), Shelter Movers (Influence), Universite de
LATAM
LOréal (Media), Bayer (Media), Samsung (Media), Nestlé (Creative), PicPay (Creative),
GLOBAL
Adobe (Media), Mondelez (Production), King (Creative), Ninjacart (Creative), Alvarium Tiedemann (Creative), Amplifon (Creative), Pfizer (Creative, Media, Data, Production),
Disclaimer
Certain information contained in this document, other than historical information, may constitute forward-looking statements or unaudited financial forecasts. These forward-looking statements and forecasts are subject to risks and uncertainties that could cause actual results to differ materially from those projected. These forward-looking statements and forecasts are presented at the date of this document and, other than as required by applicable law,
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Appendices
Net revenue: organic growth calculation
(million euro) |
Q1 |
Q2 |
Q3 |
Q4 |
FY |
|
Impact of currency
|
|
2022 net revenue |
2,800 |
3,073 |
3,237 |
3,462 |
12,572 |
|
GBP (2) |
(22) |
Currency impact (2) |
61 |
(73) |
(189) |
(139) |
(340) |
|
USD (2) |
(196) |
2022 net revenue at 2023 exchange rates (a) |
2,861 |
3,000 |
3,048 |
3,323 |
12,232 |
|
Others |
(122) |
2023 net revenue before acquisition impact (1) (b) |
3,065 |
3,213 |
3,209 |
3,512 |
12,999 |
|
Total |
(340) |
Net revenue from acquisitions (1) |
14 |
26 |
32 |
28 |
100 |
|
|
|
2023 net revenue |
3,079 |
3,239 |
3,241 |
3,540 |
13,099 |
|
|
|
Organic growth (b/a) |
+7.1% |
+7.1% |
+5.3% |
+5.7% |
+6.3% |
|
|
(1) |
Acquisitions (Practia, Profitero, Corra, Tquila, Yieldify, Tremend, Retargetly, Wiredcraft, Bizon, VivNetworks, Cheat, ARBH, Changi, Perlu, Advertise Bulgaria, |
(2) |
EUR = |
EUR = |
Definitions
Net revenue or Revenue less pass-through costs: Pass-through costs mainly concern production and media activities, as well as various expenses incumbent on clients. These items that can be re-billed to clients do not come within the scope of assessment of operations, net revenue is a more relevant indicator to measure the operational performance of the Groupe’s activities.
Organic growth: Change in net revenue excluding the impact of acquisitions, disposals and currencies
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization): Operating margin before depreciation & amortization
Operating margin: Revenue after personnel costs, other operating expenses (excl. non-current income and expense) and depreciation (excl. amortization of intangibles arising on acquisitions)
Operating margin rate: Operating margin as a percentage of net revenue
Headline Group Net Income: Net income attributable to the Groupe, after elimination of impairment charges / real estate transformation expenses, amortization of intangibles arising on acquisitions, the main capital gains (or losses) on disposals, change in the fair value of financial assets and the revaluation of earn-out costs
EPS (Earnings per share): Group net income divided by average number of shares, not diluted
EPS, diluted (Earnings per share, diluted): Group net income divided by average number of shares, diluted
Headline EPS, diluted (Headline Earnings per share, diluted): Headline group net income, divided by average number of shares, diluted
Capex: Net acquisitions of tangible and intangible assets, excluding financial investments and other financial assets
Free cash flow before changes in working capital requirements: Net cash flow from operating activities less interests paid & received, repayment of lease liabilities & related interests and before changes in WCR linked to operating activities
Free cash flow: Net cash flow from operating activities less interests paid & received, repayment of lease liabilities & related interests
Net debt (or financial net debt): Sum of long and short financial debt and associated derivatives, net of treasury and cash equivalents, excluding lease liability since 1st
Average net debt: Average of monthly net debt at end of month
Dividend pay-out: Dividend per share / Headline diluted EPS
Organic Growth vs. 2019: calculated as ([1 + organic growth (n-3)] * [1 + organic growth (n-2)] * [1 + organic growth (n-1)] * [1 + organic growth (n)])-1
Consolidated income statement
(in millions of euros) |
|
2023 |
2022 |
Net revenue (1) |
|
13,099 |
12,572 |
Pass-through revenue |
|
1,703 |
1,624 |
Revenue |
|
14,802 |
14,196 |
Personnel costs |
|
(8,514) |
(8,211) |
Other operating costs |
|
(3,443) |
(3,184) |
Operating margin before depreciation & amortization |
|
2,845 |
2,801 |
Depreciation and amortization expense (excluding acquired intangibles) |
|
(482) |
(535) |
Operating margin |
|
2,363 |
2,266 |
Amortization of intangibles from acquisitions |
|
(268) |
(287) |
Impairment loss |
|
(153) |
(109) |
Non-current income and expenses |
|
(202) |
(103) |
Operating income |
|
1,740 |
1,767 |
Financial expense |
|
(120) |
(118) |
Financial income |
|
198 |
101 |
Cost of net financial debt |
|
78 |
(17) |
Revaluation of earn-out payments |
|
12 |
(2) |
Other financial income and expenses |
|
(99) |
(100) |
Pre-tax income of consolidated companies |
|
1,731 |
1,648 |
Income taxes |
|
(415) |
(431) |
Net income of consolidated companies |
|
1,316 |
1,217 |
Share of profit of associates |
|
6 |
5 |
Net income |
|
1,322 |
1,222 |
Of which: |
|
|
|
- Net income attributable to non-controlling interests |
|
10 |
- |
- Net income attributable to equity holders of the parent company |
|
1,312 |
1,222 |
|
|||
Per-share data (in euros) – Net income attributable to equity holders of the parent company |
|
|
|
Number of shares |
|
250,706,485 |
250,972,110 |
Earnings per share |
|
5.23 |
4.87 |
Number of diluted shares |
|
253,999,363 |
253,605,167 |
Diluted earnings per share |
|
5.17 |
4.82 |
(1) Net revenue: Revenue less pass-through costs. Those costs are mainly production & media costs and out-of-pocket expenses. As these are items that can be passed on to clients are not included in the scope of analysis of transactions, the net revenue indicator is the most appropriate for measuring the Groupe’s operational performance. |
Consolidated statement of comprehensive income
(in millions of euros) |
2023 |
2022 |
Net income for the period (a) |
1,322 |
1,222 |
Comprehensive income that will not be reclassified to income statement |
|
|
- Actuarial gains (and losses) on defined benefit plans |
12 |
42 |
- Deferred taxes on comprehensive income that will not be reclassified to income statement |
(3) |
(10) |
Comprehensive income that may be reclassified to income statement |
|
|
- Remeasurement of hedging instruments |
34 |
(21) |
- Consolidation translation adjustments |
(390) |
311 |
Total other comprehensive income (b) |
(347) |
322 |
Total comprehensive income for the period (a) + (b) |
975 |
1,544 |
Of which: |
|
|
- Total comprehensive income for the period attributable to non-controlling interests |
4 |
- |
- Total comprehensive income for the period attributable to equity holders of the parent company |
971 |
1,544 |
Consolidated balance sheet
(in millions of euros) |
|
|
|
Assets |
|
|
|
|
|
12,422 |
12,546 |
Intangible assets, net |
|
958 |
1,247 |
Right-of-use assets related to leases |
|
1,614 |
1,753 |
Property, plant and equipment, net |
|
596 |
610 |
Deferred tax assets |
|
212 |
186 |
Investments in associates |
|
46 |
55 |
Other financial assets |
|
316 |
394 |
Non-current assets |
|
16,164 |
16,791 |
Inventories and work-in-progress |
|
341 |
327 |
Trade receivables |
|
13,400 |
12,089 |
Contract assets |
|
1,297 |
1,149 |
Other receivables and current assets |
|
1,264 |
926 |
Cash and cash equivalents |
|
4,250 |
4,616 |
Current assets |
|
20,552 |
19,107 |
Total assets |
|
36,716 |
35,898 |
|
|||
Equity and liabilities |
|
|
|
Share capital |
|
102 |
102 |
Additional paid-in capital and retained earnings, Group share |
|
9,686 |
9,533 |
Equity attributable to holders of the parent company, Group share |
|
9,788 |
9,635 |
Minority interests |
|
(40) |
(35) |
Total equity |
|
9,748 |
9,600 |
Long-term borrowings |
|
2,462 |
2,989 |
Long-term lease liabilities |
|
1,992 |
2,197 |
Deferred tax liabilities |
|
98 |
219 |
Pension commitments and other long-term benefits |
|
265 |
244 |
Long-term provisions |
|
319 |
260 |
Non-current liabilities |
|
5,136 |
5,909 |
Trade payables |
|
17,077 |
15,660 |
Contract liabilities |
|
513 |
549 |
Short-term borrowings |
|
726 |
627 |
Short-term lease liabilities |
|
360 |
360 |
Income taxes payable |
|
378 |
486 |
Pension commitments and other short-term benefits |
|
21 |
20 |
Short-term provisions |
|
255 |
271 |
Other creditors and current liabilities |
|
2,502 |
2,416 |
Current liabilities |
|
21,832 |
20,389 |
Total equity and liabilities |
|
36,716 |
35,898 |
Consolidated statement of cash flows
(in millions of euros) |
|
2023 |
2022 |
Cash flow from operating activities |
|
|
|
Net income |
|
1,322 |
1,222 |
Neutralization of non-cash income and expenses: |
|
|
|
Income taxes |
|
415 |
431 |
Cost of net financial debt |
|
(78) |
17 |
Capital losses (gains) on disposal of assets (before tax) |
|
(1) |
103 |
Depreciation, amortization and impairment losses |
|
903 |
931 |
Share-based compensation |
|
85 |
64 |
Other non-cash income and expenses |
|
79 |
86 |
Share of profit of associates |
|
(6) |
(5) |
Dividends received from associates |
|
7 |
3 |
Taxes paid |
|
(669) |
(430) |
Change in working capital requirements (1) |
|
(9) |
(5) |
Net cash flows generated by (used in) operating activities (I) |
|
2,048 |
2,417 |
Cash flow from investing activities |
|
|
|
Purchases of property, plant and equipment and intangible assets |
|
(180) |
(198) |
Disposals of property, plant and equipment and intangible assets |
|
2 |
4 |
Purchases of investments and other financial assets, net |
|
13 |
11 |
Acquisitions of subsidiaries |
|
(194) |
(523) |
Disposals of subsidiaries |
|
11 |
(43) |
Net cash flows generated by (used in) investing activities (II) |
|
(348) |
(749) |
Cash flow from financing activities |
|
|
|
Dividends paid to holders of the parent company |
|
(726) |
(603) |
Dividends paid to non-controlling interests |
|
(9) |
(4) |
Proceeds from borrowings |
|
5 |
- |
Repayment of borrowings |
|
(502) |
(10) |
Repayment of lease liabilities |
|
(344) |
(317) |
Interest paid on lease liabilities |
|
(79) |
(87) |
Interest paid |
|
(99) |
(101) |
Interest received |
|
192 |
84 |
Buy-outs of non-controlling interests |
|
(4) |
(3) |
Net (buybacks)/sales of treasury shares and warrants |
|
(189) |
41 |
Net cash flows generated by (used in) financing activities (III) |
|
(1,755) |
(1,000) |
Impact of exchange rate fluctuations (IV) |
|
(311) |
300 |
Change in consolidated cash and cash equivalents (I + II + III + IV) |
|
(366) |
968 |
Cash and cash equivalents on |
|
4,616 |
3,659 |
Bank overdrafts on |
|
(1) |
(12) |
Net cash and cash equivalents at beginning of year (V) |
|
4,615 |
3,647 |
Cash and cash equivalents at closing date |
|
4,250 |
4,616 |
Bank overdrafts at closing date |
|
(1) |
(1) |
Net cash and cash equivalents at end of the year (VI) |
|
4,249 |
4,615 |
Change in consolidated cash and cash equivalents (VI - V) |
|
(366) |
968 |
(1) Breakdown of changes in working capital requirements |
|||
Change in inventory and work-in-progress |
(22) |
(46) |
|
Change in trade receivables and other receivables |
(2,303) |
(710) |
|
Change in trade payables, other payables and provisions |
2,316 |
751 |
|
Change in working capital requirements |
(9) |
(5) |
Consolidated statement of changes in equity
Number of outstanding shares |
(in millions of euros) |
Share capital |
Additional paid-in capital |
Reserves and earnings brought forward |
Translation reserve |
Fair value reserve |
Equity attributable to equity holders of the parent company |
Non-controlling interests |
Total equity |
251,992,065 |
|
102 |
4,037 |
5,324 |
85 |
87 |
9,635 |
(35) |
9,600 |
|
Net income |
- |
- |
1,312 |
- |
- |
1,312 |
10 |
1,322 |
|
Other comprehensive income, net of tax |
- |
- |
114 |
(384) |
(71) |
(341) |
(6) |
(347) |
|
Total comprehensive income for the year |
- |
- |
1,426 |
(384) |
(71) |
971 |
4 |
975 |
- |
Dividends |
- |
(701) |
(25) |
- |
- |
(726) |
(9) |
(735) |
1,545,833 |
Share-based compensation, net of tax |
- |
- |
102 |
- |
- |
102 |
- |
102 |
|
Effect of acquisitions and commitments to buy-out non-controlling interests |
- |
- |
(5) |
- |
- |
(5) |
- |
(5) |
- |
Equity warrants exercise |
- |
- |
- |
- |
- |
- |
- |
- |
(2,963,405) |
(Buybacks)/Sales of treasury shares |
- |
- |
(189) |
- |
- |
(189) |
- |
(189) |
250,574,493 |
|
102 |
3,336 |
6,633 |
(299) |
16 |
9,788 |
(40) |
9,748 |
|
|
|
|
|
|||||
249,600,509 |
|
101 |
4,581 |
4,056 |
(226) |
76 |
8,588 |
(33) |
8,555 |
|
Net income |
|
|
1,222 |
|
|
1,222 |
- |
1,222 |
|
Other comprehensive income, net of tax |
|
|
|
311 |
11 |
322 |
- |
322 |
|
Total comprehensive income for the year |
- |
- |
1,222 |
311 |
11 |
1,544 |
- |
1,544 |
- |
Dividends |
|
(559) |
(44) |
|
|
(603) |
(4) |
(607) |
246,225 |
Share-based compensation, net of tax |
|
|
66 |
|
|
66 |
|
66 |
|
Effect of acquisitions and commitments to buy-out non-controlling interests |
|
|
(1) |
|
|
(1) |
2 |
1 |
603,226 |
Equity warrants exercise |
1 |
15 |
|
|
|
16 |
|
16 |
1,542,105 |
(Buybacks)/Sales of treasury shares |
|
|
25 |
|
|
25 |
|
25 |
251,992,065 |
|
102 |
4,037 |
5,324 |
85 |
87 |
9,635 |
(35) |
9,600 |
Earnings per share (basic and diluted)
(in millions of euros, except for share data) |
|
2023 |
2022 |
Net income used for the calculation of earnings per share |
|
|
|
Net income share attributable to equity holders of the parent company |
A |
1,312 |
1,222 |
Impact of dilutive instruments: |
|
|
|
- Savings in financial expenses related to the conversion of debt instruments, net of tax |
|
- |
- |
Group net income – diluted |
B |
1,312 |
1,222 |
Number of shares used to calculate earnings per share |
|
|
|
Number of shares at |
|
254,311,860 |
253,462,409 |
Shares created over the year |
|
- |
393,965 |
|
|
(3,605,375) |
(2,884,264) |
Average number of shares used for the calculation |
C |
250,706,485 |
250,972,110 |
Impact of dilutive instruments: |
|
|
|
- Free shares and dilutive stock options (1) |
|
3,292,878 |
2,633,057 |
Number of diluted shares |
D |
253,999,363 |
253,605,167 |
(in euros) |
|
|
|
Earnings per share |
A/C |
5.23 |
4.87 |
Diluted earnings per share |
B/D |
5.17 |
4.82 |
(1) |
Only stock options and warrants with a dilutive impact, i.e. whose strike price is lower than the average strike price, are included in the calculation. |
As of |
Headline earnings per share (basic and diluted)
(in millions of euros, except for share data) |
|
2023 |
2022 |
Net income used to calculate headline earnings per share (1) |
|
|
|
Net income – Group share |
|
1,312 |
1,222 |
Items excluded: |
|
|
|
- Amortization of intangibles from acquisitions, net of tax |
|
199 |
215 |
- Impairment loss (2), net of tax |
|
115 |
80 |
- Main capital gains and losses on disposal of assets and fair value adjustment of financial assets, net of tax |
|
1 |
92 |
- Revaluation of earn-out payments |
|
(12) |
2 |
- Settlement Rosetta / |
|
152 |
- |
|
E |
1,767 |
1,611 |
Impact of dilutive instruments: |
|
|
|
- Savings in financial expenses related to the conversion of debt instruments, net of tax |
|
- |
- |
|
F |
1,767 |
1,611 |
Number of shares used to calculate earnings per share |
|
|
|
Number of shares at |
|
254,311,860 |
253,462,409 |
Shares created over the year |
|
- |
393,965 |
|
|
(3,605,375) |
(2,884,264) |
Average number of shares used for the calculation |
C |
250,706,485 |
250,972,110 |
Impact of dilutive instruments: |
|
|
|
- Free shares and dilutive stock options |
|
3,292,878 |
2,633,057 |
Number of diluted shares |
D |
253,999,363 |
253,605,167 |
(in euros) |
|
|
|
Headline earnings per share (1) |
E/C |
7.05 |
6.42 |
Headline earnings per share – diluted (1) |
F/D |
6.96 |
6.35 |
(1) |
Headline EPS after elimination of impairment losses, amortization of intangibles from acquisitions, the main capital gains and losses on disposal and fair value adjustment of financial assets, the revaluation of earn-out payments and the settlement |
(2) |
This amount includes impairment losses on goodwill for |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240207789767/en/
Lorène Fleury Investor Relations + 33 1 44 43 57 24 lorene.fleury@publicisgroupe.com
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