Further market share gains
Upgrading guidance
Regulatory News:
Publicis Groupe (Paris:PUB):
- H1 2024 net revenue organic growth of +5.4%; +7.4% on a
like-for-like revenue basis
- Stronger than expected Q2 net revenue organic growth at
+5.6%
- Accelerating versus 4Y Q2 CAGR of 4.7%
- Gaining market share with c. 400 bps1 outperformance versus
peer average
- Solid performance across all regions in Q2:
- Continued momentum in the U.S. at +5.3%
- Robust Europe at +4.2% on top of a high comparable
- Strong APAC at +7.7%, with China accelerating to
+10.5%
- Operating margin rate at record H1 level of 17.3%, including
AI investment
- Headline diluted EPS up +5.3% at €3.38, Free cash flow2 up
at €744m
- Upgrading full year 2024 net revenue organic growth to +5-6%
vs +4-5% previously, despite persistent macro
uncertainties
- Maintaining industry-high 2024 financial KPIs: Operating
margin at 18.0%, Free cash flow2 between €1.8bn-1.9bn
Q2 2024
€3,458m
+6.8%
+5.6%
H1 2024 Results
H1 2024
2024 vs 2023
7,650
+7.7%
6,688
+5.9%
+5.4%
1,160
+6.1%
17.3%
- Headline Groupe net income
857
+5.4%
- Headline diluted EPS (euro)
3.38
+5.3%
744
+2.6%
_________________________________ 1 Based on consensus 2 Before
change in working capital requirements
Arthur Sadoun, Chairman and CEO of Publicis Groupe:
“Publicis achieved a very strong first half of the year, with
net revenue organic growth at +5.4% and +7.4% growth on a
like-for-like revenue basis.
We continued to win market share, with Q2 net revenue organic
growth accelerating to +5.6%, above expectations and 400bps ahead
of our industry.
For the first 6 months of the year, we kept delivering industry
leading financial KPIs.
Despite a backdrop of ongoing macro-economic pressures, not only
did our H1 performance demonstrate that our model is strong. It
also showed that our outperformance versus our peers is
sustainable, with our growth rate close to doubling that of our
competitors since 2019.
As a result, we are confident in our ability to accelerate
further in H2.
We are raising our net revenue organic growth guidance and now
expect to deliver between +5-+6%. We will maintain our
best-in-class financial ratios while continuing to make material
investments in our talent and AI strategy.
As we further extract ourselves from the pack, we have
everything we need to continue to lead and reinvent our industry
thanks to our transformation.
We have a winning go to market, which has put us at the head of
the new business rankings for the past five years. We have taken
the leadership of personalization at scale, demonstrated by our
combined Data and Media offering’s double-digit growth this
quarter, for the third year in a row. And thanks to Publicis
Sapient, we are uniquely positioned to partner with our clients in
their AI-led transformation.
I would like to take this opportunity to thank all of our
clients for their trust. I would also like to thank our people
around the world for their outstanding work. Sustaining these
levels of outperformance in such a difficult environment is an
everyday battle and with the Executive Committee we are truly
grateful for all of their efforts.”
The Publicis Board of Directors met on July 17, 2024 under
the chairmanship of Arthur Sadoun and approved the financial
statements for the first half of 2024.
KEY FIGURES
EUR million, except per-share
data and percentages
H1 2024
H1 2023
2024
vs 2023
Data from the Income statement and Cash
flow statement
Net revenue
6,688
6,318
+5.9%
Pass-through revenue
962
787
+22.2%
Revenue
7,650
7,105
+7.7%
EBITDA
1,401
1,335
+4.9%
% of net revenue
20.9%
21.1%
-20bps
Operating margin
1,160
1,093
+6.1%
% of net revenue
17.3%
17.3%
0bps
Operating income
1,008
843
+19.6%
Net income attributable to the
Groupe
773
623
+24.1%
Earnings per share (EPS)
3.08
2.48
+24.2%
Headline diluted EPS3
3.38
3.21
+5.3%
Free cash flow before change in
working capital requirements
744
725
+2.6%
Data from the Balance
sheet
June 30, 2024
Dec 31, 2023
Total assets
35,918
36,716
Groupe share of Shareholders’
equity
9,916
9,788
Net debt (net cash)
99
(909)
_________________________________ 3 Net income attributable to
the Groupe, after elimination of impairment charges, 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
NET REVENUE IN Q2 2024
Publicis Groupe’s net revenue in Q2 2024 was 3,458 million
euros, up +6.8% from 3,239 million euros in 2023. Exchange rates
had a small positive impact of 13 million euros. Acquisitions, net
of disposals, accounted for an increase in net revenue of 25
million euros. Organic growth reached +5.6%.
Breakdown of Q2 2024 net revenue by
region
EUR
Net revenue
Reported
Organic
million
Q2 2024
Q2 2023
growth
growth
North America
2,104
1,955
+7.6%
+5.2%
Europe
856
809
+5.8%
+4.2%
Asia Pacific
306
300
+2.0%
+7.7%
Middle East & Africa
100
91
+9.9%
+9.1%
Latin America
92
84
+9.5%
+18.9%
Total
3,458
3,239
+6.8%
+5.6%
North America net revenue was up +7.6% on a reported
basis, including a positive impact of the U.S. dollar to euro
exchange rate. Organic growth in the region was +5.2%. In the
U.S., organic growth came at +5.3%, with Media and Epsilon
continuing to be accretive this quarter, confirming the strength of
our integrated offer in this geography where our model is the most
advanced. Media grew double-digits, on top of double-digit growth
over the last two years, while Epsilon posted mid-single digit
growth mainly led by Digital Media and Data activities. Publicis
Sapient posted a slight decline on top of a solid +5% in Q2 2023,
in a context of continued “wait and see” attitude from clients.
Creative activities were broadly stable.
Net revenue in Europe was up by +5.8% on a reported basis
and +4.2% organically. Organic growth in the U.K. was
broadly stable, with double-digit growth in Media and Creative.
Organic growth in France was +4.2% led by mid-single-digit
growth in Media while Publicis Sapient faced a challenging
comparable base. Germany posted +3.4% organic growth driven
by Media and Publicis Sapient. Central & Eastern Europe
was very strong at +17.4% organically, with double-digit growth in
most countries, led by both Media and Creative.
Net revenue in Asia Pacific recorded +2.0% growth on a
reported basis and +7.7% on an organic basis. China
accelerated to +10.5% organic growth after +6.7% in Q1 2024,
benefitting from new business wins in Media. South-East Asia
posted high-single-digit growth, fueled by Thailand, India and
Malaysia. Australia was up by a low-single-digit, improving
sequentially from Q1 2024.
In Middle East & Africa, net revenue was up +9.9% on
a reported basis, and +9.1% organically, largely driven by
double-digit-growth in Media and Publicis Sapient.
Net revenue in Latin America was up +9.5% on a reported
basis, and +18.9% organically, led by both Media and Creative,
notably in Brazil, Mexico and Colombia.
NET REVENUE IN H1 2024
Publicis Groupe’s net revenue for the first half of 2024 was
6,688 million euros, up by 5.9% compared to 6,318 million euros in
the first half of 2023. Exchange rate variations over the period
had a small negative impact of 16 million euros. Acquisitions (net
of disposals) had a positive impact of 43 million euros on net
revenue. Organic growth was +5.4% in the first half of 2024.
Breakdown of H1 2024 net revenue by
sector Automotive
15%
Healthcare
15%
Financial
13%
Food and beverage
13%
TMT
13%
Non Food consumer products
11%
Retail
9%
Public sectors & Others
4%
Leisure & travel
4%
Energy & Manufacturing
3%
On the basis of 3,266 main clients representing
92% of Groupe net revenue
Breakdown of H1 2024 net revenue by
region
EUR
Net revenue
Reported
Organic
million
H1 2024
H1 2023
growth
growth
North America
4,112
3,893
+5.6%
+5.0%
Europe
1,649
1,552
+6.3%
+5.1%
Asia Pacific
572
550
+4.0%
+7.0%
Middle East & Africa
190
179
+6.1%
+6.6%
Latin America
165
144
+14.6%
+14.0%
Total
6,688
6,318
+5.9%
+5.4%
Net revenue in North America was up by +5.0% on an
organic basis in the first half of 2024 (+5.6% on a reported
basis). The U.S. performed strongly with +5.2% organic
growth.
Europe posted +5.1% organic growth in the first half
(+6.3% on a reported basis). The U.K. was broadly stable,
France at +6.6%, Germany at +4.1% and Central
& Eastern Europe at +19.2% on an organic basis.
Asia Pacific net revenue was up by +7.0% on an organic
basis (+4.0% on a reported basis). China reported an organic
growth of +8.9%, and Australia was up by +1.3% on an organic
basis.
Net revenue in the Middle East & Africa region was up
by +6.6% on an organic basis (+6.1% on a reported basis) and up by
+14.0% in Latin America (+14.6% on a reported basis).
ANALYSIS OF H1 2024 KEY FIGURES
Income statement
EBITDA amounted to 1,401 million euros in H1 2024,
compared to 1,335 million euros in H1 2023, up by +4.9%. This
represents 20.9% of net revenue.
Personnel costs totaled 4,498 million euros in H1 2024
from 4,200 million euros in H1 2023, an increase of +7.1%. As a
percentage of net revenue, personnel expenses were 67.3% in H1
2024, versus 66.5% in H1 2023. Fixed personnel costs were 4,006
million euros and represented 59.9% of net revenue versus 59.0% in
H1 2023, the increase being largely attributable to the AI
investment. The cost of freelancers remained stable compared to H1
2023 in percentage of net revenue, representing 174 million euros
in H1 2024. Restructuring costs were 41 million euros, slightly
down versus 45 million euros in H1 2023.
Non personel costs amounted to 1,030 million euros in H1
2024, compared to 1,025 million euros in H1 2023. This represented
15.4% of net revenue in H1 2024 versus 16.2% of net revenue in H1
2023, improving by 80 basis points. They comprised:
- Other operating expenses (excluding pass-through costs,
depreciation & amortization) amounted to 789 million euros,
compared to 783 million euros in H1 2023. They represent 11.8% of
net revenue, compared to 12.4% in H1 2023, reflecting solid cost
control.
- Depreciation and amortization charge was 241 million euros in
H1 2024, stable compared to 242 million euros in H1 2023.
As a result, the operating margin amounted to 1,160
million euros, up by +6.1% compared to H1 2023. This represents an
operating margin rate of 17.3% in H1 2024, in line with H1 2023,
while including circa 45 million euros relating to the Groupe’s AI
investment.
Operating margin rates by geographies were 18.7% in North
America, 16.1% in Europe, 19.6% in Asia-Pacific, 3.7% in Middle
East & Africa and 3.6% in Latin America.
Amortization of intangibles arising from acquisitions
totaled 123 million euros in H1 2024, down 19 million euros versus
H1 2023, related to the end of the amortization associated with
technologies.
Impairment losses amounted to 45 million euros, down from
112 millions euros in H1 2023, as 2023 included the impact of our
real estate footprint optimization.
In addition, non-current expense was an income of 16
million euros, mainly corresponding to the contribution of the
CitrusAd and Epsilon technologies to the Group's 49%-owned
associate Unlimitail. In H1 2023, non-current income amounted to 4
million euros.
Operating income totaled 1,008 million euros in H1 2024,
versus 843 million euros in H1 2023.
The financial result, comprising the cost of net
financial debt and other financial charges and income, was at 0
million euro in H1 2024, compared to a charge of 14 million euros
in H1 2023.
- The cost of net financial debt was an income of 39 million
euros in H1 2024, compared to an income of 42 million euros in H1
2023. In H1 2024, it included 61 million euros of financial
expenses (59 million euros in H1 2023) and financial income of 100
million euros, broadly stable versus last year.
- Other financial income and expenses were a charge of 39 million
euros in H1 2024, notably composed by 42 million euros interest on
lease liabilities and 7 million euros income from the fair value
remeasurement of mutual funds. In H1 2023, other financial income
and expenses were a charge of 56 million euros, notably composed by
39 million euros interest on lease liabilities and 8 million euros
cost from the fair value remeasurement of Mutual Funds.
The revaluation for earn-outs payments was an income of
28 million euros in H1 2024, compared to 1 million euros income in
H1 2023.
The income tax charge was 256 million euros in H1
2024, corresponding to a forecasted effective tax rate of 24.9% for
2024, compared to 205 million euros in H1 2023 corresponding to a
forecasted effective tax rate of 24.8% for 2023.
The share of profit of associates is a 3 million euros
loss in H1 2024, compared to a 3 million euros profit in H1
2023.
Minority interests were a gain of 4 million euros in H1
2024 compared to a gain of 5 million euros in Groupe results in H1
2023.
Overall, net income attributable to the Groupe was 773
million euros in H1 2024, compared to 623 million euros in H1
2023.
Finally the earning per share was 3.08 euros in H1 2024,
compared to 2.48 euros in H1 2023, up by +24.2%.
Free cash flow
EUR million
H1 2024
H1 2023
EBITDA
1,401
1,335
Repayment of lease liabilities and related
interests
(224)
(207)
Investments in fixed assets (net)
(118)
(75)
Financial interest paid (net)
13
17
Tax paid
(376)
(386)
Other
48
41
Free cash flow before changes
in WCR
744
725
The Groupe’s free cash flow, before change in working
capital requirements, is up by 19 million euros compared to H1
2023, to 744 million euros.
Repayment of lease liabilities and related interests
amounted to 224 million euros in H1 2024, compared to 207 million
euros in H1 2023.
Net investments in fixed assets were 118 million euros in
H1 2024, up 43 million compared to 75 million euros in H1 2023,
reflecting higher investment in platforms and cloud infrastructure,
the cost related to ERP deployment across the entire organization,
as well as costs associated with new leases.
Financial interest were an income of 13 million euros in
H1 2024, compared to an income of 17 million euros in H1 2023.
Tax paid amounted to 376 million euros, down 10 million
euros compared to H1 2023. In January 2023, the Group made an
additional payment of 110 million euros related to fiscal year
2022, reflecting the implementation of the Tax Cuts and Jobs Act
(TCJA) in the United States. However, this impact was largely
offset by an increase in taxes paid in H1 2024, due to various
items including true-ups on 2023 tax and withholding tax.
Net debt
Net financial debt amounted to 99 million euros as of June 30,
2024 compared to a net cash position of 909 million euros of
December 31, 2023 reflecting the seasonality of the activity. The
Groupe's last twelve months average net debt as of June 30, 2024
amounted to 375 million euros compared to 498 million euros as of
June 30, 2023.
ACQUISITIONS
On January 18, 2024, Publicis Groupe Singapore announced
the acquisition of AKA Asia, one of Singapore's leading
integrated communications agencies. Founded in 2009, AKA is a
highly respected player in the South-East Asian market, known for
delivering award-winning and innovative communication campaigns.
The acquisition will expand and diversify Publicis Groupe's
capabilities in the region, while bolstering the Groupe's strategic
communications, PR and influence offering. AKA will join the
Groupe's regional Influence practice.
On March 12, 2024, Publicis Sapient announced the
acquisition of Spinnaker SCA, a leading supply chain
services firm that provides end-to-end supply chain strategy,
planning and execution consulting services. Founded in 2002 and
based in Boulder in the U.S., Spinnaker SCA will become part of
Publicis Sapient and bring core capabilities and skill sets
including advanced AI and ML analytics, supply chain digital twins,
warehouse and transportation management and expanded digital
services. Spinnaker SCA will further enable Publicis Sapient to
offer solutions for clients to optimize their agile supply chains
as part of their digital business transformation.
On June 5, 2024, Publicis Groupe in France announced the
acquisition of Downtown Paris, a creation and production
house specialized in leading brands in the beauty and luxury
business. Founded in 2016, the agency will strengthen the
production vertical of Publicis France and will work with the
Groupe's various luxury entities.
CSR
In May 2024, the Groupe announced the arrival of Nannette
LaFond-Dufour as Chief Impact Officer. In this newly created global
role, Nannette will be responsible for driving immediate impact
across the Groupe’s long-term ESG commitments. These include
Publicis’ ambitious SBTI-approved climate goals, its concrete
diversity, equity and inclusion action plans, as well as its
flagship initiatives like the Working with Cancer pledge and the
Women’s Forum for the Economy & Society.
GOVERNANCE
The Combined General Shareholder’s meeting of Publicis Groupe
SA, held on May 29, 2024, approved the change in the Company's
governance structure to adopt a Board of Directors, replacing the
previous Management Board and Supervisory Board.
The Board of Directors, which met following the General Meeting,
agreed to combine the roles of Chairman and Chief Executive
Officer, appointing Mr. Arthur Sadoun as Chairman and CEO.
Mrs. Élisabeth Badinter was appointed Vice-Chair of the Board of
Directors.
Mr. Maurice Lévy has taken on the role of Chairman Emeritus of
Publicis Groupe and is invited to attend Board meetings.
Mr. André Kudelski was appointed to the position of Lead
Director (Administrateur Référent). In this role, his primary
missions are to facilitate the smooth operation of the Company’s
governing bodies alongside the Chairman of the Board; preside over
executive sessions; guard against potential conflicts of interest;
and supervise the evaluation process of the Board of Directors.
All the proposed amendments to the Articles of Incorporation
were approved, as was the extension of the Company’s term.
POST-REPORTING PERIOD EVENTS
On July 12, 2024, the Groupe put a new Revolving Credit Facility
in place for an amount of 2,000 million euros with a maturity of
July 2029 (and a two-year extension option). This facility cancels
and replaces the confirmed credit facility of 1,579 million euros,
maturing in 2026.
OUTLOOK
After a better than expected first half of 2024, which
demonstrated the strength of the Groupe’s model and the
sustainability of its industry outperformance, the Groupe is
confident in its potential to accelerate further on organic growth
in the second half of the year, and upgrades its organic growth
guidance for the full year 2024 despite ongoing macroeconomic
uncertainties.
The Groupe now aims for +5% to +6% organic growth for the
full year, compared to +4% to +5% previously.
The bottom-end of the guidance at +5% is the new floor in
the current macroeconomic environment, factoring in continued
delays in clients’ digital business transformation projects and
reduced spend in classic advertising.
The top-end of the guidance at +6% is the new stretch,
assuming an improved macroeconomic context, which would lead to
resumed spend on digital business transformation projects, fewer
reductions in classic advertising and some positive impact from
increased client budgets in the fourth quarter.
The Groupe also confirms its 2024 guidance on financial
ratios, which will be maintained at the industry-leading levels
of 18% operating margin rate and between 1.8 and 1.9 billion euros
free cash flow before change in working capital, including the
Groupe’s opex investment of 100 million euros for its AI plan.
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 103,000 professionals.
www.publicisgroupe.com | Twitter: @PublicisGroupe | Facebook |
LinkedIn | YouTube | Viva la Difference!
Appendices
Net revenue: organic growth
calculation
(million euro)
Q1
Q2
H1
Impact of currency at end June
2024 (million euro)
2023 net revenue
3,079
3,239
6,318
GBP (2)
15
Currency impact (2)
(29)
13
(16)
USD (2)
(1)
2023 net revenue at 2024 exchange rates
(a)
3,050
3,252
6,302
Others
(30)
2024 net revenue before acquisition impact
(b)
3,212
3,433
6,645
Total
(16)
Net revenue from acquisitions (1)
18
25
43
2024 net revenue
3,230
3,458
6,688
Organic growth (b/a)
+5.3%
+5.6%
+5.4%
(1)
Acquisitions (Spinnaker SCA, Practia, Corra, AKA Asia, ARBH,
Downtown Paris), net of disposals.
(2)
EUR = USD 1.081 on average in H1 2024 vs. USD 1.081 on average in
H1 2023 EUR = GBP 0.855 on average in H1 2024 vs. GBP 0.877 on
average in H1 2023
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.
Like-for-like growth: Growth at current year exchange
rates and current perimeter, including organic growth coming from
acquisitions since the acquisition date.
4Y CAGR organic growth: Calculated as: ( [1 + organic
growth (n-4)]*[1 + organic growth (n-3)]*[1 + organic growth
(n-2)]*[1 + organic growth (n-1)] )^(1/4) - 1.
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: Last twelve month average of monthly
net debt at end of month.
Dividend pay-out: Dividend per share / Headline diluted
EPS.
Consolidated income statement
(in millions of euros)
June 30, 2024
(6 months)
June 30, 2023
(6 months)
December 31, 2023
(12 months)
Net revenue (*)
6,688
6,318
13,099
Pass-through revenue
962
787
1,703
Revenue
7,650
7,105
14,802
Personnel costs
Other operating costs
(4,498)
(1,751)
(4,200)
(1,570)
(8,514)
(3,443)
Operating margin before depreciation
& amortization
1,401
1,335
2,845
Depreciation and amortization
(excluding intangibles from
acquisitions)
(241)
(242)
(482)
Operating margin
1,160
1,093
2,363
Amortization of intangibles from
acquisitions
(123)
(142)
(268)
Impairment loss
(45)
(112)
(153)
Other non-current income and expenses
16
4
(202)
1 434
Operating income
1,008
843
1,740
Financial expense
Financial income
Cost of net financial debt
Other financial income and expenses
Revaluation of earn-out payments
(61)
100
39
(39)
28
(59)
101
42
(56)
1
(120)
198
78
(99)
12
Pre-tax income of consolidated
companies
1,036
830
1,731
Income taxes
(256)
(205)
(415)
Net income of consolidated
companies
780
625
1,316
Share of profit of associates
(3)
3
6
Net income
777
628
1,322
Of which:
- Net income attributable to
non-controlling interests
4
5
10
Net income attributable to equity
holders of the parent company
773
623
1,312
Per share data (in euros) - Net
income attributable
to equity holders of the parent
company
Number of shares
250,711,640
250,829,338
250,706,485
Earnings per share
3.08
2.48
5.23
Number of diluted shares
253,302,880
253,618,058
253,999,363
Diluted earnings per share
3.05
2.46
5.17
(*) Net revenue: Revenue less pass-through costs. Those costs
are mainly production & media costs and out-of-pocket expenses.
As these 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)
June 30, 2024
(6 months)
June 30, 2023
(6 months)
December 31, 2023
(12 months)
Net income for the period
(a)
777
628
1,322
Comprehensive income that will not be
reclassified to income statement
- Actuarial gains (and losses) on defined
benefit plans
18
(6)
12
- Deferred taxes on comprehensive income
that will not be reclassified to income statement
(4)
2
(3)
Comprehensive income that may be
reclassified to income statement
- Remeasurement of hedging instruments
19
13
34
- Consolidation translation
adjustments
239
(217)
(390)
Total other comprehensive income
(b)
272
(208)
(347)
Total comprehensive income for the
period (a) + (b)
1,049
420
975
Of which:
- Comprehensive income for the period
attributable to non-controlling interests
4
(2)
4
- Comprehensive income for the period
attributable to equity holders of the parent company
1,045
422
971
Consolidated balance sheet
(in millions of euros)
June 30, 2024
December 31, 2023
Assets
Goodwill, net
12,812
12,422
Intangible assets, net
901
958
Right-of-use assets related to leases
1,640
1,614
Property, plant and equipment, net
591
596
Deferred tax assets
173
212
Investments in associates
80
46
Other financial assets
316
316
Non-current assets
16,513
16,164
Inventories and work-in-progress
482
341
Trade receivables
12,883
13,400
Contract assets
1,860
1,297
Other receivables and current assets
1,098
1,264
Cash and cash equivalents
3,082
4,250
Current assets
19,405
20,552
Total assets
35,918
36,716
Equity and
liabilities
Share capital
102
102
Additional paid-in capital and retained
earnings, Groupe share
9,814
9,686
Equity attributable to holders of the
parent company – Groupe share
9,916
9,788
Non-controlling interests (minority
interests)
(41)
(40)
Total equity
9,875
9,748
Long-term borrowings
1,650
2,462
Long-term lease liabilities
1,990
1,992
Deferred tax liabilities
63
98
Pension commitments and other short-term
benefits
260
265
Long-term provisions
365
319
Non-current liabilities
4,328
5,136
Trade payables
15,953
17,077
Contract liabilities
481
513
Short-term borrowings
1,382
726
Short-term lease liabilities
372
360
Income taxes payable
302
378
Pension commitments and other short-term
benefits
24
21
Short-term provisions
207
255
Other creditors and current
liabilities
2,994
2,502
Current liabilities
21,715
21,832
Total equity and liabilities
35,918
36,716
Consolidated statement of cash flows
(in millions of euros)
June 30, 2024
(6 months)
June 30, 2023
(6 months)
December 31, 2023
(12 months)
Cash flow from
operating activities
Net income
777
628
1,322
Neutralization of non-cash income and
expenses:
Income taxes
256
205
415
Cost of net financial debt
(39)
(42)
(78)
Capital losses (gains) on disposal of
assets (before tax)
(16)
(2)
(1)
Depreciation, amortization and impairment
losses
409
496
903
Share-based compensation
46
41
85
Other non-cash income and expenses
12
51
79
Share of profit of associates
3
(3)
(6)
Dividends received from associates
1
2
7
Taxes paid
(376)
(386)
(669)
Change in working capital requirements
(1,629)
(1,053)
(9)
Net cash flows generated by (used in)
operating activities (I)
(556)
(63)
2,048
Cash flow from
investing activities
Purchases of property, plant and equipment
and intangible assets
(120)
(75)
(180)
Disposals of property, plant and equipment
and intangible assets
2
-
2
Purchases of investments and other
financial assets, net
12
(10)
13
Acquisitions of subsidiaries
(229)
(158)
(194)
Disposals of subsidiaries
-
-
11
Net cash flows generated by (used in)
investing activities (II)
(335)
(243)
(348)
Cash flow from
financing activities
Dividends paid to holders of the parent
company
-
-
(726)
Dividends paid to non-controlling
interests
(9)
(7)
(9)
Proceeds from new borrowings
-
4
5
Repayment of borrowings
(5)
-
(502)
Repayment of lease liabilities
(182)
(168)
(344)
Interest paid on lease liabilities
(42)
(39)
(79)
Interest paid
(85)
(86)
(99)
Interest received
98
103
192
Buy-outs of non-controlling interests
(7)
(2)
(4)
Net (buybacks)/sales of treasury shares
and warrants
(119)
(193)
(189)
Net cash flows generated by (used in)
financing activities (III)
(351)
(388)
(1,755)
Impact of exchange rate fluctuations
(IV)
74
(239)
(311)
Change in consolidated cash and cash
equivalents (I + II + III + IV)
(1,168)
(933)
(366)
Cash and cash equivalents on January 1
4,250
4,616
4,616
Bank overdrafts on January 1
(1)
(1)
(1)
Net cash and cash equivalents at
beginning of year (V)
4,249
4,615
4,615
Cash and cash equivalents at closing
date
3,082
3,682
4,250
Bank overdrafts at closing date
(1)
-
(1)
Net cash and cash equivalents at
closing date (VI)
3,081
3,682
4,249
Change in consolidated cash and cash
equivalents (VI - V)
(1,168)
(933)
(366)
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
250,574,493
January 1, 2024
102
3,336
6,633
(299)
16
9,788
(40)
9,748
Net income
773
773
4
777
Other comprehensive income, net
of tax
14
239
19
272
-
272
Total income and expenses for
the period
787
239
19
1,045
4
1,049
-
Dividends
(53)
(800)
(853)
(9)
(862)
-
Share-based compensation, net of
tax
60
60
60
Effect of acquisitions and
commitments to buy-out non-controlling interests
(5)
(5)
4
(1)
-
Equity warrant exercise
-
-
-
416,958
(Buybacks)/Sales of treasury
shares
(119)
(119)
(119)
250,991,451
June 30, 2024
102
3,283
6,556
(60)
35
9,916
(41)
9,875
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
January 1, 2023
102
4,037
5,324
85
87
9,635
(35)
9,600
Net income
623
623
5
628
Other comprehensive income, net
of tax
(210)
9
(201)
(7)
(208)
Total income and expenses for
the period
0
0
623
(210)
9
422
(2)
420
-
Dividends
(701)
(25)
(726)
(7)
(733)
-
Share-based compensation, net of
tax
50
50
50
Effect of acquisitions and
commitments to buy-out non-controlling interests
1
1
0
1
-
Equity warrant exercise
0
0
0
(1,490,149)
(Buybacks)/Sales of treasury
shares
(194)
(194)
(194)
250,501,916
June 30, 2023
102
3,336
5,779
(125)
96
9,188
(44)
9,144
Earnings per share (basic and diluted)
(in millions of euros, except for share
data)
June 30, 2024
June 30, 2023
Net income used for the calculation of
earnings per share
Net income share attributable to equity
holders of the parent company
A
773
623
Impact of dilutive instruments:
- Savings in financial expenses related to
the conversion of debt instruments, net of tax
-
-
Net income – Groupe share – diluted
B
773
623
Number of shares used to calculate
earnings per share
Number of shares at January 1
254,311,860
254,311,860
Shares created over the period
-
-
Treasury shares to be deducted (average
for the period)
(3,600,220)
(3,482,522)
Average number of shares used for the
calculation
C
250,711,640
250,829,338
Impact of dilutive instruments:
- Free shares and dilutive stock
options
2,591,240
2,788,720
- Equity warrants (BSA)
-
-
Number of diluted shares
D
253,302,880
253,618,058
(in euros)
Earnings per share
A/C
3.08
2.48
Diluted earnings per share
B/D
3.05
2.46
Headline earnings per share (basic and diluted)
(in millions of euros, except for share
data)
June 30, 2024
June 30, 2023
Net income used to calculate headline
earnings per share(1)
Net income – Groupe share
773
623
Items excluded:
- Amortization of intangibles from
acquisitions, net of tax
92
105
- Impairment loss, net of tax
34
83
- Revaluation of earn-out payments
(28)
(1)
- Main capital gains and losses on
disposal of assets and fair value adjustment of financial assets,
net of tax(2)
(14)
3
Headline Groupe net income
E
857
813
Impact of dilutive instruments:
- Savings in financial expenses related to
the conversion of debt instruments, net of tax
-
-
Headline Groupe net income, diluted
F
857
813
Number of shares used to calculate
earnings per share
Number of shares at January 1
254,311,860
254,311,860
Shares created over the period
-
-
Treasury shares to be deducted (average
for the period)
(3,600,220)
(3,482,522)
Average number of shares used for the
calculation
C
250,711,640
250,829,338
Impact of dilutive instruments:
- Free shares and dilutive stock
options
2,591,240
2,788,720
- Equity warrants (BSA)
-
-
Number of diluted shares
D
253,302,880
253,618,058
(in euros)
Headline earnings per share(1)
E/C
3.42
3.24
Headline earnings per share –
diluted(1)
F/D
3.38
3.21
(1)
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 and
revaluation of earn-out payments.
(2)
As of June 30, 2024, the main capital gains and losses on disposal
amount to euro 8 million and the fair value adjustment of financial
assets amounts to euro 6 million. At June 30, 2023, the main
capital gains and losses on disposal amount to euro 4 million and
the fair value adjustment of financial assets amounts to euro (7)
million.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240717724274/en/
Amy Hadfield Corporate Communications + 33 1 44 43 70 75
amy.hadfield@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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