Full Year 2023
Results-Another record year on
all KPIs
Confident for 2024
February 8, 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 |
|
|
|
(€m) |
FY 2023 |
2023 vs 2022 |
|
Revenue |
14,802 |
+4.3% |
|
Net revenue |
13,099 |
+4.2% |
|
Organic growth |
+6.3% |
|
|
Operating margin |
2,363 |
+4.3% |
|
Operating margin rate |
18.0% |
- |
|
Headline diluted EPS (euro) |
6.96 |
+9.5% |
|
Adjusted free cash flow |
€1.7bn1 |
|
|
Q4 2023 Revenue |
|
| Net revenue |
3,540 |
| Reported growth |
+2.3% |
|
Organic growth |
+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.
Arthur Sadoun, Chairman and CEO of Publicis Groupe:
“In a very challenging macroeconomic context, and after 6
years of transformation, Publicis definitely extracted
itself from the pack in 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
transform in 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 15
billion euros in 2023, up 35% versus 2019, Publicis has
firmly established itself as our
industry’s second largest player and the first in terms
of market capitalization.
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 February 7,
2024, under the chairmanship of Maurice Lévy, to examine the 2023
annual accounts presented by Arthur Sadoun, CEO and Chairman of the
Management Board.
KEY FIGURES
|
EUR million, except per-share data and
percentages |
FY 2023 |
FY 2022 |
2023vs 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 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
|
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 May
29, 2024.3 Adjusted for the net impact of the Rosetta
settlement for 148 million euros in 2023 and the additional 107
million euros cash tax payment made in January 2023 relating to
2022 (110 million euros at 2022 rates).
NET REVENUE IN FY 2023
Publicis Groupe’s net revenue for the full year
2023 was 13,099 million euros, up +4.2% compared to 12,572 million
euros in 2022. Exchange rate variations over the period had a
negative impact of 340 million euros and acquisitions (net of
disposals) had a positive impact of 100 million euros.
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
Based on 3,641 clients representing 91% of the
Groupe’s net revenue.
Breakdown of FY 2023 net revenue by region
|
EUR |
Net revenue |
Reported |
Organic |
|
million |
FY 2023 |
FY 2022 |
growth |
growth |
| North America |
8,050 |
7,869 |
+2.3% |
+4.9% |
| Europe |
3,172 |
2,879 |
+10.2% |
+10.3% |
| Asia Pacific |
1,156 |
1,176 |
-1.7% |
+2.9% |
| Middle East & Africa |
380 |
359 |
+5.8% |
+12.4% |
| Latin America |
341 |
289 |
+18.0% |
+8.9% |
|
Total |
13,099 |
12,572 |
+4.2% |
+6.3% |
In North America, net revenue
was up +4.9% organically. The region grew +2.3% on a reported basis
in 2023, which includes a negative impact of the U.S. dollar to
euro exchange rate. The U.S. posted a very solid
+5.0% organically, on top of a double-digit growth last year,
fueled by Media activities at double-digit. Epsilon saw its net
revenue increase by +9.6% organically on the year, with a
particularly strong performance in Digital Media. Creative
activities were broadly stable on the year. Finally, Publicis
Sapient was up +2.5% organically on a strong comparable base,
impacted by the delays in DBT projects experienced by all
comparable IT consulting firms.
Net revenue in Europe grew
+10.3% on an organic basis (+10.2% reported), including a very
strong +10.4% in the United Kingdom, +5.2%1 in France, +7.2% in
Germany and +16% in Central and Eastern Europe. Excluding the
impact of our Outdoor Media activities and the Drugstore, organic
growth was +9.0% in Europe.
Asia Pacific saw its net
revenue grow by +2.9% organically and decline by 1.7% on a reported
basis. China posted +2.2% organic growth despite difficult
macroeconomic conditions throughout the year.
The Middle East and Africa
region was up +12.4% organically and +5.8% on a reported basis.
In Latin America, organic
growth was at +8.9%, while reported growth was at +18.0%.
1 Excluding Outdoor Media activities & the
Drugstore.
NET REVENUE IN Q4 2023
Publicis Groupe's net revenue in Q4 2023 was
3,540 million euros compared to 3,462 million euros in Q4 2022, up
+2.3%. Exchange rate variations had a 139 million euros negative
impact. Acquisitions (net of disposals) had a 28 million euros
positive impact.
Organic growth was +5.7% in Q4 2023, ahead of
the Groupe’s upgraded guidance in October 2023.
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 |
| North America |
2,158 |
2,133 |
+1.2% |
+6.0% |
| Europe |
851 |
814 |
+4.5% |
+4.3% |
| Asia Pacific |
318 |
323 |
-1.5% |
+4.0% |
| Middle East & Africa |
106 |
104 |
+1.9% |
+9.7% |
| Latin America |
107 |
88 |
+21.6% |
+13.9% |
|
Total |
3,540 |
3,462 |
+2.3% |
+5.7% |
North America net revenue was
up +6.0% organically in Q4 2023. Taking into account a negative
impact of the U.S. dollar to euro exchange rate, reported growth
was at +1.2%. The U.S. accelerated in Q4 with
+6.1% organic growth as Media grew a strong double-digit, while
Creative activities were softer on the quarter, affected by
localized cuts in classic advertising and on top of a high
comparable base last year. Epsilon posted +10% organic on the
quarter, largely driven by its Digital Media and Data divisions. In
the context of delays in IT consulting projects, Publicis Sapient
was broadly stable, facing a strong comparable base of +15% in Q4
2022.
Europe net revenue was up +4.3%
on an organic basis (+4.5% reported). It grew +2.5% organically
when excluding the contribution of Outdoor Media activities and the
Drugstore. The United Kingdom posted a 4.2% organic decline on the
quarter, facing a particularly high comparable base of +38% in Q4
2022 which was largely fueled by Publicis Sapient. France recorded
a +6.3%1 organic growth, driven by Creative and Publicis Sapient.
In Germany, organic growth was up by +5.3%. Net revenue in Central
& Eastern Europe was up +20.3% organically.
1 Excluding Outdoor Media activities & the
Drugstore
Net revenue in Asia Pacific
grew +4.0% organically and declined 1.5% on a reported basis. This
was led by China that improved sequentially to +1.4% in Q4, thanks
to a more favorable macroeconomic context. South-East Asia was
double-digit again this quarter, mainly driven by India, Singapore,
Thailand, and Malaysia. Australia and New Zealand posted negative
performances, the latter having a very strong comparable in Q4 last
year.
Net revenue in the Middle East and
Africa region was up +9.7% organically (+1.9% on a
reported basis), largely driven by Publicis Sapient.
In Latin America, net revenue
was up +13.9% organically (+21.6% on a reported basis) led by
Argentina, a strong Colombia at double digits and solid Mexico and
Brazil.
ANALYSIS OF FY 2023 KEY
FIGURES
Income Statement
EBITDA amounted to 2,845
million euros in 2023, compared to 2,801 million euros in 2022, up
1.6%. EBITDA was 21.7% as a percentage of net revenue.
Personnel costs totaled 8,514
million euros in 2023, up by 3.7% from 8,211 million euros in 2022.
As a percentage of net revenue, the personnel expenses represented
65.0% in 2023, compared to 65.3% in 2022. Fixed personnel costs
were 7,531 million euros representing 57.5% of net revenue versus
56.5% in 2022. The cost of freelancers decreased by 124 million
euros in 2023, representing 332 million euros. Restructuring costs
reached 111 million euros representing less than 1% of net revenue,
up from 82 million euros in 2022.
Non-personnel costs amounted to
2,222 million euros in 2023, compared to 2,095 million euros in
2022. This represented 17.0% of net revenue versus 16.7% in 2022.
They comprised:
- Other operating
expenses (excluding pass-through costs, depreciation &
amortization) amounted to 1,740 million euros, compared to 1,560
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, versus
535 million euros in 2022, a reduction of 10% or 53 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 2,363 million euros, up +4.3% compared to 2022. This represents
a margin rate of 18.0%, stable versus 2022.
Operating margin rates by region were 19.0% in
North America, 17.7% in Europe, 19.0% in Asia-Pacific, 6.7% in
Latin America and 8.7% in the Middle East and Africa region.
Amortization of intangibles arising from
acquisitions totaled 268 million euro in 2023, down 19
million euros from 287 million euros in 2022. Impairment losses
amounted to 153 million euros (109 million euros in 2022),
essentially related to the real estate consolidation plan "All in
One", which leads to a reduction in the number of sites, while
allowing better collaboration between the teams.
In addition, net non-current
income is negative at 202 million euros in 2023 (versus a
negative 103 million euros in 2022), largely reflecting a 203
million euros net charge related to the Rosetta settlement. A
comprehensive resolution was reached with all 50 State Attorneys
General, the District of Columbia, and certain U.S. territories
related to past work undertaken for opioid manufacturers primarily
by former advertising agency Rosetta, bringing to a close almost
three years of discussions. In the context of this settlement,
following the payment of 343 million dollars to the States,
Publicis Health was compensated 130 million dollars by
its insurers. Consequently, it has recorded a non-recurring charge
of 213 million dollars before tax in the fourth quarter of 2023. In
addition, 7 million dollars to be paid to the Attorney Generals for
the cost of investigation and other various costs have been
accounted for. The total impact of the settlement before tax in the
non-current income is a charge of 220 million dollars,
corresponding to 203 million euros. This settlement, in which the
Attorneys General recognized Publicis Health’s ‘good faith and
responsible corporate citizenship’, is in no way an admission of
wrongdoing or liability.
Operating income totaled 1,740
million euros in 2023, after 1,767 million euros in 2022.
The financial result,
comprising the cost of net financial debt and other financial
charges and income, was a charge of 21 million euros compared to a
charge of 117 million euros in 2022.
- The cost of net financial
debt was an income of 78 million euros in 2023 compared to
a charge of 17 million euros in 2022. It included 99 million euros
of interest largely related to Epsilon’s acquisition debt (102
million euros in 2022), partly mitigated by financial income of 178
million euros, improving from 85 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 by 79 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
of 100 million euros, notably composed of 87 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 12 million euros
compared to a loss of 2 million euros in 2022.
The income tax charge was 415
million euros in 2023, corresponding to an effective tax rate of
24.1%. This compared to 431 million euros in 2022, corresponding to
an effective tax rate of 24.8%.
The share in profit of
associates was an income of 6 million euros (versus an
income of 5 million euros in 2022).
Minority interests were a gain
of 10 million euros in 2023, when they were negligible in 2022.
Overall, net income
attributable to the Groupe was 1,312 million euros
in 2023, an increase of 7.4% compared to 1,222 million euros in
2022.
Finally, the Groupe’s earnings per
share was 5.23 euros in 2023, an increase of 7.4% compared
to 4.87 euros in 2022.
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 January
2023 |
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
1,547 million euros.
This included two main non-recurring cash
outflows.
- TCJA, for a net impact of 107
million euros: In January 2023, the Groupe proceeded to an
additional 107 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 the U.S. (TCJA)
that was confirmed late December 2022. This change in tax
legislation requires companies to capitalize and amortize U.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 was 1,700 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 was 1,695 million euros for 2023, in line
with the guidance of the Groupe of close to 1.7 billion euros.
Financial interests were an income of 93 million
euros, compared to financial interest paid of 17 million euros in
2022, reflecting higher remuneration on cash balances.
1 Adjusted for the net impact of the Rosetta settlement for
148 million euros in 2023 and the additional 107 million euros cash
tax payment made in January 2023 relating to 2022 (110 million
euros at 2022 rates).
Repayment of lease liabilities and related
interests amounted to 423 million euros in 2023 (404 million euros
in 2022). Net investments in fixed assets amounted to 178 million
euros, decreasing by 16 million euros compared to 194 million euros
in 2022.
Tax paid amounted to 669 million euros, compared
to 430 million euros in 2022, rising by 239 million euros of which
107 million euros were due to the additional TCJA tax payment
realized in January 2023 and related to 2022.
Net debt
The Groupe reported a net cash position of 909
million euros as of December 31, 2023 compared to a 634 million
euros net cash position as of December 31, 2022. The Groupe's
average net debt in 2023 amounted to 432 million euros, down from
685 million euros in 2022.
GROUPE AI STRATEGY
On January 25, 2024, the Groupe announced its
ambition to become the industry’s first AI-powered Intelligent
System.
In a presentation hosted by Arthur Sadoun,
Chairman and CEO, and Directoire+ members Carla Serrano, Chief
Strategy Officer, Nigel Vaz, CEO Publicis Sapient and Dave Penski,
CEO Publicis Media, the Groupe introduced CoreAI, which infuses a
layer of AI across the Groupe’s platform organization to connect
its enterprise knowledge under a single entity.
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 300
million euros in this strategy over the next three years. In 2024,
the Groupe anticipates an investment of 100 million euros with 50%
dedicated to people, focused on upskilling, training and
recruitment, and 50% to technology, through licenses, IT software
and cloud infrastructure. This investment will be fully accounted
for in the P&L. It will have no dilutive impact on the Groupe’s
operating margin in 2024 as it will be funded by internal
efficiencies. It will be slightly accretive on the operating margin
in 2025.
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 May
2024.
ACQUISITIONS AND DISPOSALS
On January 4, 2023, Publicis
announced the acquisition of Yieldify, a
London-based marketing technology company. Founded in 2013,
Yieldify’s leading platform and service enable companies to better
personalize consumers’ website experiences, driving incremental
revenue and other desired outcomes by delivering the right message
at the right time based on a consumer's profile and stage in their
purchase journey. Yieldify will become part of Epsilon, and its
onsite personalization, conversion optimization and customer
journey offerings will complement Epsilon PeopleCloud to better
address the mid-market.
On January 10, 2023, Publicis
announced the acquisition of Advertise BG, one of
the leading performance marketing agencies in Bulgaria. The
strategic acquisition will further reinforce Publicis Groupe
Bulgaria’s competencies in digital transformation, adding firepower
to its existing offering across digital strategy, data, social
media, and digital content creation.
On March 30, 2023, Publicis
announced the acquisition of Practia, based in
Buenos Aires, a leading Latin America independent technology
company and provider of digital business transformation services.
With its 1,200 experienced professionals, this acquisition will
position Publicis Sapient to enter the Latin America market while
establishing a foundation for a nearshore delivery platform that
will enable the company to better service clients based in North
America.
On May 23, 2023, Publicis
announced the acquisition of full stake in Publicis Sapient
AI Labs, an innovative artificial intelligence research
and development joint venture launched in 2020 in partnership
between Publicis Sapient, Elder Research and Tquila. The
acquisition will further strengthen Publicis Sapient’s data &
AI capabilities and enable the company to develop innovative
solutions across industries for a wide range of applications, such
as generative AI, natural language processing (NLP), computer
vision and autonomous systems.
On June 5, 2023, Publicis
announced the acquisition of Corra, based in New
York, an ecommerce leader recognized by Adobe as one of the top
commerce firms in North America. Corra will augment Publicis
Sapient’s existing expertise in commerce solutions, including Adobe
Commerce, while extending Publicis Sapient’s offerings in digital
and omnichannel commerce. By acquiring Corra, Publicis Sapient will
further establish itself as a global leader across the entire Adobe
Product Suite, in addition to further cementing its already leading
capabilities.
On June 15, 2023, Publicis and
Carrefour announced the launch of their joint venture
Unlimitail, to address the booming retail media
market in Continental Europe, Brazil and Argentina. The launch of
the company comes six months after the initiative was announced and
has been unveiled during Viva Tech. Unlimitail will partner with
retailers and brands, bringing the scale, connectivity and
consistency for retail media to reach its full potential in those
geographies. It is built on the most advanced technologies,
“CitrusAd powered by Epsilon”, and the deepest retail expertise
from Carrefour. Unlimitail has already converted its first 13
retail partners, representing together more than 120 million
loyalty customers.
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 100
million euros in its AI plan.
- Free cash flow between 1.8
and 1.9 billion euros1 in 2024.
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 900 million euros fully paid in cash,
corresponding to a 3.40 euros dividend per share that will be
submitted to the vote of its shareholders at its next AGM on May
29, 2024. This corresponds to a 49% payout and is a 17% increase
compared to prior year.
- A share repurchase plan of
circa 200 million euros in order to stabilize the number
of shares in circulation. The repurchase plan aims to cover the
existing Long Term Incentive Plans of the Groupe for a total of
circa 2 million shares.
- An envelope for selective
M&A between 700 and 800 million euros, to further
strengthen the Groupe’s data, tech, commerce and AI
capabilities.
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 Publicis Groupe launched internal projects to prepare the
required double materiality exercise, as well as the expected level
of granularity for the 12 themes set out in the ESRS (European
Sustainability Reporting Standards). ESG risk mapping has been
presented to the Audit Committee and the ESG Committee of the
Supervisory Board.
CSR was one of the themes discussed with
employees at the fourth Viva la Difference internal seminar, which
brought together virtually all the Groupe's employees in December
2023 to review the year and look ahead to 2024. This seminar
provided an opportunity to detail the Groupe's strategic ambitions
in terms of artificial intelligence and its application to the
Groupe's various businesses. This was followed by a day of internal
round-table discussions with each region, to enable Top Management
to respond at greater length to any questions employees might
have.
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, Publicis Groupe
has joined the Climate Fund for Nature (Mirova/Natixis). The fund
will support projects dedicated to the protection and restoration
of nature with associated benefits for biodiversity and
communities. This represents a commitment of €20 million for the
delivery of voluntary carbon credits over fifteen years.
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 Hamas attacks
in Israel, where the Groupe has some 440 employees. The absolute
priority was to ensure the safety of the teams and their families,
as had been the case in February 2022 during the Russian invasion
of Ukraine. These wars disrupt many lives and each time we have to
put in place tailor-made measures to help our employees. In
Ukraine, the Groupe has continued to pay the salaries of local
teams in 2023, as it did in 2022. Donations made by employees and
the Groupe to a fund dedicated to employees and their families in
Ukraine have helped 32 families since July 2022.
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 the United States, the
United Kingdom, France, India and many other countries, efforts
have continued to focus on more open and inclusive recruitment, in
particular for young people who are far removed from our
businesses, with several programmes, such as the MCTP for the 14th
year in the United States, or Publicis Track in France. The
diversity and inclusion programmes in place in the United States
were presented to the ESG Committee.
In terms of training, the Marcel Classes
platform has stepped up its personalised support for employees with
the Growth Dashboard. In October 2023, the organisation of remote
working was specified for 2024, requiring everyone to be in the
office three days a week, in order to give priority to
interpersonal relations in situ and encourage team cooperation.
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
January 2022) for an average stay of 29 days.
The 19th Global Meeting of the Women's Forum for
the Economy and the Society took place over two days in Paris in
November 2023, bringing together over 1,500 people in person and
more than 12,000 online participants from 122 countries.
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 the United States, the OnceForAllCoalition
initiated by Publicis Media includes more than 70 active partners,
including more than 30 brands and advertisers, all working to
promote innovative media and content aimed at under-represented or
minority populations. Advertisers have increased their investment
in these audiences by 50% over the year.
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
Janus Code of Ethics, such as anti-corruption, data protection and
information systems security. Lastly, the Groupe was rated 958/1000
by Cybervadis, illustrating continuous improvement linked in
particular to effective cooperation between the GDPO (Group Data
Protection Office) teams and the GSO (Global Security Office)
security teams.
In terms of external ESG ratings, Publicis Groupe finished 2023
at the top of its sector with 8/10 of the main rating agencies, and
the company is included in several ESG indices such as DSJI Europe
and DJSI World.
NEW BUSINESS
EUROPE
Santen France (Health), GlaxoSmithKline (Health
& Media), Comité Colbert (Creative), Speedy (Data), Carlsberg
(Creative), Abeille Assurances (Creative), Visa (Technology &
Creative), DomusVi (Technology), DocuSign (Creative), The Football
Association Premier League (Creative), Allwyn (Creative), Pivovara
Daruvar (Creative), heroal (Creative), Deutsche Telekom (Creative),
DATEV (Influence), Samsung (DTC), PepsiCo (Media), L’Oréal (Media),
Tesco (Creative), Asda (Technology), Renault (Influence), FoodWell
(Media), Notino (Media), Casavo (Creative), La Poste (Media), Dream
Games (Media), Cassa Depositi e Prestiti (Media), Meggle (Media),
Île-de-France Mobilités (Creative), TotalEnergies (Creative),
Bioderma (Creative), Pernod Ricard (Influence), Ovo Energy
(Creative), Le manège à bijoux (Creative), Inserm (Media), SNCF
(Digital), John Lewis (Creative), Alfa Romeo (Air France KLM
(Influence), Ikea (Creative & media), Gruppo Iren (Creative),
Bulgari (Creative), Gruppo Campari (Influence), Western Union
(Media), Beko (Influence), Société Générale (DBT), Iveco (Media),
Sony Music (Digital), Legrand (Creative), Nexity (Creative), Skoda
(Social Media), Charlotte Tilbury (Media), Ferrero
(Media/Creative/Influence), Laya Healthcare (Creative),
PublicJobs.ie (Creative), ADAC (Influence), Innomotics (Media),
Bosch (Media), ASOS (Media), Sodexo (Media, Portu (Media),
Bundesministerium fuer Arbeit und Soziales (DBT), Belvedere Vodka
(Creative), SAS Bagel Chef (Creative), Answear.com (Creative),
Miele (Commerce), Sandoz (Content), Orange (Creative), Confused.com
(Creative), Bundesministerium fuer Arbeit und Soziales (DBT),
Grunenthal (Influence), Tediber (Media), Zoopla (Media), Signify
Iberia (Media), Glovo App (Media), Stiftelsen Norsk Rikstoto
(Media), Henkel (Media), Bausch Health (Media), Stiftelsen Norsk
Rikstoto (Content), Norske Boligbyggelags Landsforbund (Content),
Storck (Media), Hyundai Motor Company (Influence), Totalizator
Sportowy (Media), Interlacto, (Media), Hisense Group Company
(Influence), Simba Dickie Group (Media), Waitrose (Retail Media),
Burger King (Digital), NDL Pro-Health (Digital), Akind Group
(Media), OBI (Media), Salone del Mobile Milano (Media &
DBT)
NORTH AMERICA
Krafton (Influence), Intuit (Creative), Shelter
Movers (Influence), Universite de Sherbrooke (Creative), Steak 'n
Shake (Creative & CRM), Loblaws (Cretaive), Mattress Firm
(Creative), Jasco Games (Creative), Wondery (CRM), McDonalds (CRM),
Milton Hershey School (Influence), University of Oklahoma
(Production), Progress Residential (Production), Wyndham Hotels
& Resorts (Production), Robert Walters (Production), HP
(Commerce), Sun Life of Canada (Commerce), Rite Aid (Media), The
PUR Company (Media), MTY Food Group (Influence), General Mills
(Commerce), Dunkin’ (Creative & Digital), Walgreens (Media), KB
Home (Creative), Burger King (Creative), Sanofi (Influence), Virgin
Mobile (Creative), Toronto Parking Authority (Creative),
HealthPartners Canada (Influence), Groupe Atallah (Media), Kicking
Horse Coffee (Creative & Influence), General Motors Company
(Production), Tillamook County Creamery Association (Creative),
Signet Jewelers (Media & Production), Blue Diamond Growers
(Media), Turo (Creative & Production), UPS (Creative), LVMH
(Media), Shark Beauty (Creative), New Age Products (Media), Samsung
(Commerce), TGI Fridays (Media), National Life Insurance (Media),
Sierra Nevada Brewing Company (Creative), Coopers Hawk Winery and
Restaurants (CRM), Haribo of America (Creative & Influence),
Air Transat (Influence), The Cadillac Fairview Corporation (CRM),
Kellogg Company (Content), The Procter And Gamble Company
(Influence), Duracell (Creative), Kimberly-Clark (Media), The
Container Store (Data), Dicks Sporting Goods (CRM), ConAgra Foods
(Creative), QuadReal Property (Content & Influence),
GlaxoSmithKline (Production), Edo Japan Restaurants (Influence),
Starbucks (Influence), Olymel (Creative), Insurance Brokers
Association of Ontario (Influence), Foresters Life Insurance
(Production), The TJX Companies (Content), Teachers Insurance and
Annuity Association of America (CRM), Turo (Production), Edo Japan
Restaurants (Influence), Toronto Metropolitan University
(Influence), Daily Bread Food Bank (Content), Pricewaterhouse
Coopers (Production), Mary Brown's Chicken (Influence), Heineken
(Commerce), Nestlé Health Science (Media), KFC (Creative), DSW
(Media), Molson Coors (Creative), Cisco Systems (Media), Cuisinart
(Content), Perrigo (Creative), AH Capital Management (Content),
Jazwares (Influence), Xsolla (Influence), Bath and Body Works
(Creative), Quest Nutrition (Creative)
ASIA PACIFIC/MEA
Miele (CRM), United Homeware Company (Creative),
Krungthai Bank (Creative), Anker (Media), Royal Automobile Club
(Media), Charles & Keith (Commerce), Nick Did This (Media),
Nine Network (Creative), Essity (Media), OSHO (DBT), La Trobe
University (DBT), LVMH (Production), Cathay Pacific Airways
(Commerce), Pepsico (Production), Duolingo (Creative), Aeries
Financial Technologies (Media), Central Provident Fund Board
(Production), AIA Company (Media), Haleon (Production), LOréal
(Media & Production), The Standard Bank of South Africa
(Creative), Sanofi (Creative), Nestlé (Production), Diageo
(Commerce), Mondelez (Production), Pizza Hut (Creative), Cancer
Council Victoria (Media), Emirates NBD (Creative), Grupo Bimbo
(Creative), Microsoft (Influence), JioMart (Creative), AkBank
(Media), Novartis (Creative & Production), United Breweries
(Production), Charlotte Tilbury Beauty (Creative & Production),
Genesis Motor (Creative), Torrent Pharmaceuticals (Creative), More
Retail (Media), GlaxoSmithKline (Creative), Crocs (Creative),
Shanghai Neobio (Creative), FWD Group (Media), Bank of China
(Media), Yili (Creative), Singhealth (Digital), P&G (Digital),
Oritain (Creative & Media), Neom Company (Creative), Renault
(Media), Bosideng (Production), HSBC (Creative), BASF (Creative),
Union Bank of the Philippines (Creative), Roborock (Production),
Indeed (Influence), Samsonite (Media), New Balance (Production),
Keypath Education (Media), Jio-bp (Digital), Enamor (Digital),
UniScholars (Creative), The Procter And Gamble Company (Commerce),
Friesland Campina (Media), Sony Playstation (Creative), TPG
(Media), Iveco (Media), Sace (Media), PUMA (Creative), Microtek
(Creative), BikesOnline (Digital), Reliance Retail (Creative),
Shimao Hotel Group (Influence), Hong Kong Technology Venture
Company (Content), Honor (Influence), Hang Lung Properties
(Creative), Amway (Production), BMW (Media), Apoidea Web3 (Media),
Dairy Farm International (Media), First Class Innovation
(Creative), Walt Disney (Content), Absa Bank (Media), ALDI (CRM),
Superloop (Media), Abu Dhabi Investment Office (Media), Huawei
(Creative), Auckland International Airport (Creative), Beiersdorf
(Production), Tsingtao (Creative), Jindal SAW (Influence), Temple
& Webster (Media & Influence), upGrad (Creative)
LATAM
LOréal (Media), Bayer (Media), Samsung (Media),
Nestlé (Creative), PicPay (Creative), Pizza Hut (Commerce), Polla
Chilena (Media), Telecom Argentina (Media), Paper Excellence
(Media), Comgás (Media), Sportingbet (Content), Mondelez (Media),
Decathlon (Creative)
GLOBAL
Adobe (Media), Mondelez (Production), King
(Creative), Ninjacart (Creative), Alvarium Tiedemann (Creative),
Amplifon (Creative), Pfizer (Creative, Media, Data, Production),
Miele (Media), Ancestry (Media), Essity (Creative)
* *
*
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, Publicis Groupe does not assume
any obligation to update them to reflect new information or events
or for any other reason. Publicis Groupe urges you to carefully
consider the risk factors that may affect its business, as set out
in the Universal Registration Document filed with the French
Autorité des Marchés Financiers (AMF) and which is available on the
website of Publicis Groupe (www.publicisgroupe.com), including an
unfavorable economic climate, a highly competitive industry,
risks associated with the confidentiality of personal data, the
Groupe’s business dependence on its management and employees, risks
associated with mergers and acquisitions, risks of IT system
failures and cybercrime, the possibility that our clients could
seek to terminate their contracts with us on short notice, risks
associated with the reorganization of the Groupe, risks of
litigation, governmental, legal and arbitration proceedings, risks
associated with the Groupe’s financial rating and exposure to
liquidity risks.
About Publicis Groupe - The Power of One
Publicis Groupe [Euronext Paris FR0000130577,
CAC 40] is a global leader in communication. The Groupe is
positioned at every step of the value chain, from consulting to
execution, combining marketing transformation and digital business
transformation. Publicis Groupe is a privileged partner in its
clients’ transformation to enhance personalization at scale. The
Groupe relies on ten expertise concentrated within four main
activities: Communication, Media, Data and Technology. Through a
unified and fluid organization, its clients have a facilitated
access to all its expertise in every market. Present in over 100
countries, Publicis Groupe employs around 101,000 professionals.
www.publicisgroupe.com | Twitter: @PublicisGroupe | Facebook |
LinkedIn | YouTube | Viva la Difference!
ContactsPublicis
Groupe
|
Amy Hadfield |
Corporate Communications |
+ 33 1 44 43 70 75 |
amy.hadfield@publicisgroupe.com |
|
Alessandra Girolami |
Investor Relations |
+ 33 1 44 43 77 88 |
alessandra.girolami@publicisgroupe.com |
|
Jean-Michel Bonamy |
Investor Relations |
+ 33 1 44 43 74 88 |
jean-michel.bonamy@publicisgroupe.com |
|
Lorène Fleury |
Investor Relations |
+ 33 1 44 43 57 24 |
lorene.fleury@publicisgroupe.com |
|
Maxine Miller |
Investor Relations |
+ 33 1 44 43 74 21 |
maxine.miller@publicisgroupe.com |
Appendices
Net revenue: organic growth
calculation
|
(million euro) |
Q1 |
Q2 |
Q3 |
Q4 |
FY |
|
Impact of currency at end December 2023
(million euro) |
|
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,
Publicis Sapient AI Labs), net of disposals (Russia, Qorvis, Makers
Lab)
(2) EUR = USD 1.082 on average in 2023 vs. USD 1.054 average in
2022 EUR = GBP 0.870 on average in 2023 vs. GBP 0.853 on average in
2022
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 January 2018
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) |
|
December 31, 2023 |
December 31, 2022 |
|
Assets |
|
|
|
| Goodwill |
|
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
January 1 |
|
4,616 |
3,659 |
| Bank overdrafts on January
1 |
|
(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
requirementsChange in inventory and work-in-progressChange in trade
receivables and other receivablesChange in trade payables, other
payables and provisionsChange in working capital
requirements |
|
(22)(2,303)2,316(9) |
(46)(710)751(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 |
December 31,
2022 |
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 |
December 31,
2023 |
102 |
3,336 |
6,633 |
(299) |
16 |
9,788 |
(40) |
9,748 |
| |
|
|
|
|
|
249,600,509 |
December 31,
2021 |
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 |
December 31, 2022 |
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 January
1 |
|
254,311,860 |
253,462,409 |
| Shares created over the
year |
|
- |
393,965 |
| Treasury shares to be deducted
(average for the year) |
|
(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
December 31, 2023, there were no more stock options to be
exercised. |
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 / Publicis
Health LLC
|
|
152 |
- |
| Headline Group net income |
E |
1,767 |
1,611 |
| Impact of dilutive
instruments: |
|
|
|
- Savings in financial expenses
related to the conversion of debt instruments, net of tax
|
|
- |
- |
| Headline Group net income,
diluted |
F |
1,767 |
1,611 |
| Number of shares used to
calculate earnings per share |
|
|
|
| Number of shares at January
1 |
|
254,311,860 |
253,462,409 |
| Shares created over the
year |
|
- |
393,965 |
| Treasury shares to be deducted
(average for the year) |
|
(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
Rosetta/ Publicis Health LLC(2) This amount includes impairment
losses on goodwill for euro 6 million and on right-of-use assets
related to leases for euro 109 million in 2023. In 2022, impairment
losses on goodwill were euro 19 million and euro 61 million on
right-of-use assets related to leases. |
Please find the press release here
Publicis Groupe (EU:PUB)
Historical Stock Chart
From Oct 2024 to Nov 2024
Publicis Groupe (EU:PUB)
Historical Stock Chart
From Nov 2023 to Nov 2024
