Another record year on all KPIs
Confident for 2024
Regulatory News:
Publicis Groupe (Paris:PUB):
- 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%
-
- Headline diluted EPS (euro)
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.
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
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
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
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
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!
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 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
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240207789767/en/
Publicis 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
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