2023-08-09 04:02:21
In the wake of 2022, most CAC 40 companies once more posted excellent results in the first half of 2023, thwarting the cautious and measured predictions of analysts at the start of the year in the face of macroeconomic uncertainties. Their size, the solidity of their financial structures and their global presence give French multinationals considerable advantages.
In total, they achieved between 85 billion and 89 billion euros in net results (depending on the aggregate used for the banks), for a turnover of more than 900 billion. With a quarter of the lead without much surprise: Stellantis (Peugeot, Citroën, Fiat, Chrysler, etc.), which earned 10.9 billion, TotalEnergies (8.9 billion), LVMH (8.5 billion) and BNPParibas (7.2 billion).
Net income increased by 12.7% on average compared to the same period in 2022. Companies have moved upmarket, reduced their costs and dipped into the provisions made in 2022 to absorb the additional costs of certain raw materials. The activity of the companies of the flagship index of the Paris Stock Exchange (excluding Pernod Ricard and Alstom, in staggered fiscal years) was sustained, with a cumulative increase of 7.4% in turnover: Bouygues (+ 41% ), which acquired technical services specialist Equans from Engie; the engine manufacturer Safran (+28%), driven by an upturn in air traffic also benefiting Airbus; Hermès (+22.3%), which confirms its excellent health; STMicroelectronics, favored by semiconductor needs. At Renault, which has gone from – 1.7 billion in 2022 to 2.1 billion this year, the managing director, Luca de Meo, welcomes“one of the fastest turnarounds in recent automotive history” following two difficult years marked by the hasty departure from Russia, due to the invasion of Ukraine.
Stable margins despite inflation
The automotive market is recovering. Stellantis is taking advantage of the uncompromising policy (top-of-the-range models at high prices, drastic reductions in fixed costs) pursued for years by its general manager. With an operating margin of 14.4% higher than Tesla’s 10.5%, says Carlos Tavares, his group is the most profitable of the major automakers. A buoyant environment that benefits Michelin and its premium tyres, which made a profit of 1.2 billion (+ 44.7%).
Inflation has not weighed on margins, which is a surprise for many observers. In 2022, big business had been accused – including by economists at the European Central Bank – of « greedflation »or “profitflation”, for having passed on their additional costs (energy, raw materials, etc.) beyond what is necessary and fueling inflation more than wage increases. “For more than half of the companies, operating profit [+ 8 % en moyenne] grows faster than turnover, i.e. the margin increases”, notes Bénédicte Hautefort, co-founder of Scalens, a fintech dedicated to listed companies. Butme Hautefort does not consider that the best performing groups have increased their prices beyond the increase in their costs.
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