Publicis Groupe: Full Year 2022 Results
Publicis Groupe reported a strong financial performance for 2022, with net revenue reaching €12.572 billion, up 20% year-over-year, and organic growth at 10.1%. The company achieved an operating margin of 18% and a headline EPS of €6.35, reflecting a 26% increase. Free cash flow was reported at €1.7 billion. Key growth drivers included Epsilon and Publicis Sapient, which posted organic growth rates of 12% and 19%, respectively. For 2023, Publicis expects organic growth of 3% to 5% and aims to maintain its operating margin between 17.5% and 18%. A dividend of €2.90 per share has been proposed. Despite macroeconomic challenges, the company remains optimistic about its growth trajectory.
- Net revenue increased to €12.572 billion, up 20% year-over-year.
- Organic growth of 10.1%, continuing double-digit growth for the second consecutive year.
- Operating margin improved to 18.0%, indicating strong operational efficiency.
- Headline EPS rose by 26%, reflecting strong profitability.
- Free cash flow at €1.7 billion, providing financial flexibility.
- Personnel costs surged by 23.7%, impacting overall profitability.
- Net income growth was slower at 19%, which could signal potential slowing momentum.
Double-digit organic growth for the 2nd year in a row
Confident for 2023
-
2022 reported net revenue up +
20% -
Full year 2022 organic growth at +
10.1% after strong end to the year with Q4 at +9.4% -
Epsilon and Publicis Sapient at +
12% and +19% organic respectively in 2022 -
Operating margin rate at
18.0% with bonus pool at record high, headline EPS at€6.35 up +26% and Free Cash Flow at€1.7b n1 - N°1 in new business league tables in 2022 for the fourth time in five years
-
2023 organic growth expected at +
3% to +5% with operating margin rate between17.5% and18% -
2022 proposed dividend at
€2.90 per share, fully paid in cash
FY 2022 Results
(€m) |
FY 2022 |
2022 vs 2021 |
||
Net revenue |
12,572 |
+ |
||
Organic growth |
+ |
|
||
EBITDA |
2,801 |
+ |
||
Operating margin |
2,266 |
+ |
||
Operating margin rate |
|
+50bps |
||
Headline diluted EPS (euro) |
6.35 |
+ |
||
Free Cash Flow |
1,6971 |
+ |
Q4 2022 Revenue
Net revenue |
3,462 |
|
Reported growth |
+ |
|
Organic growth |
+ |
“2022 was another record year for the Groupe with reported net revenue up +
For the second year in a row, we delivered double-digit organic growth and record-high financials, with Q4 well ahead of expectations.
Today, the profound transformation we have been through means our business is firing on all cylinders, allowing us to outperform the market once again on every KPI.
Thanks to our data and technology capabilities, which now represent a third of our revenue, we have been able to continue to capture the shift in our clients’ spend towards first party data management, commerce and business transformation. This can be seen in Epsilon and Publicis Sapient’s annual numbers, with organic growth of +
Our go-to-market, positioning Publicis as a key partner in our clients’ transformation, means we have won more than our share of new business opportunities, and topped the rankings for the fourth time in the past five years.
Last but not least, our unique platform organization, with our global delivery centres, our shared services and our country model, powered by Marcel, allowed us to deliver best in class financial ratios while maintaining record-high bonuses and rewarding everyone in our group. Our operating margin rate came in at
This same revenue mix, go-to-market, and platform organization make us confident for the year ahead, despite the continued macroeconomic challenges. In 2023, we expect to sustain the momentum we have built since the pandemic, delivering 3 to
None of this would be possible without the trust of our clients and the outstanding efforts of our people, who I’d like to deeply and sincerely thank for everything we have achieved together so far.”
Publicis Groupe’s Supervisory Board met on
EUR million, except per-share data and percentages |
FY 2022 |
FY 2021 |
2022
|
|||
Data from the Income Statement and Cash flow Statement |
|
|
|
|||
Net revenue |
12,572 |
10,487 |
+ |
|||
Pass-through revenue |
1,624 |
1,251 |
+ |
|||
Revenue |
14,196 |
11,738 |
+ |
|||
EBITDA |
2,801 |
2,317 |
+ |
|||
% of Net revenue |
|
|
+20bps |
|||
Operating margin |
2,266 |
1,840 |
+ |
|||
% of Net revenue |
|
|
+50bps |
|||
Operating income |
1,767 |
1,434 |
+ |
|||
Net income attributable to the Groupe |
1,222 |
1,027 |
+ |
|||
Earnings Per Share (EPS) |
4.87 |
4.13 |
+ |
|||
Headline diluted EPS2 |
6.35 |
5,02 |
+ |
|||
Dividend per share3 |
2.90 |
2.40 |
+ |
|||
Free Cash Flow before change in working capital requirements |
1,6974 |
1,427 |
+ |
|||
Data from the Balance Sheet |
|
|
||||
Total assets |
35,898 |
32,846 |
|
|||
Groupe share of Shareholders’ equity |
9,635 |
8,588 |
|
|||
Net debt (net cash) |
(634) |
76 |
|
NET REVENUE IN FY 2022
Publicis Groupe’s net revenue for the full year 2022 was
Organic growth was +
With organic growth at double-digit again in 2022, the Groupe continued to show its ability to capture the structural shifts in the industry towards first-party data management, digital media, commerce, and business transformation. This is visible through the rise in organic growth at Epsilon and Publicis Sapient globally, up +
Breakdown of FY 2022 net revenue by sector
Automotive |
|
|
Financial |
|
|
TMT |
|
|
Healthcare |
|
|
Food and beverage |
|
|
Non Food consumer products |
|
|
Retail |
|
|
Public sectors & Others |
|
|
Leisure & travel |
|
|
Energy & Manufacturing |
|
Based on 3,620 clients representing
Breakdown of FY 2022 net revenue by region
EUR |
Net revenue |
Reported |
Organic |
|||||
million |
FY 2022 |
FY 2021 |
growth |
growth |
||||
|
7,869 |
|
6,368 |
+ |
|
+ |
||
|
2,879 |
|
2,534 |
+ |
|
+ |
||
|
1,176 |
|
1,038 |
+ |
|
+ |
||
|
359 |
|
304 |
+ |
|
+ |
||
|
289 |
|
243 |
+ |
|
+ |
||
Total |
12,572 |
|
10,487 |
+ |
|
+ |
||
In
Net revenue in
The
In
NET REVENUE IN Q4 2022
Organic growth was +
Breakdown of Q4 2022 Net revenue by region
EUR |
Net revenue |
Reported |
Organic |
|||||
million |
Q4 2022 |
Q4 2021 |
growth |
growth |
||||
|
2,133 |
1,734 |
+ |
+ |
||||
|
814 |
720 |
+ |
+ |
||||
|
323 |
302 |
+ |
+ |
||||
|
104 |
94 |
+ |
+ |
||||
|
88 |
85 |
+ |
- |
||||
Total |
3,462 |
2,935 |
+ |
+ |
||||
Net revenue in
Net revenue in the
In
ANALYSIS OF FY 2022 KEY FIGURES
Income Statement
EBITDA amounted to
-
Personnel costs totaled
8,211 million euros in 2022, up by23.7% from6,639 million euros in 2021. As a percentage of net revenue, the personnel expenses represented65.3% in 2022, compared to63.3% in 2021. Fixed personnel costs were7,109 million euros representing56.5% of net revenue versus54.6% in 2021. The cost of freelancers rose by64 million euros in 2022, representing456 million euros . Restructuring costs reached82 million euros , up from the low 2021 level of53 million euros .
-
Other operating costs (excluding depreciation & amortization) amounted to
3,184 million euros , compared to2,782 million euros in 2021. This represented25.3% of net revenue compared to26.5% in 2021. The agile structure of the Groupe allowed to contain G&A costs in a context of top line increase. In addition, the accounting treatment linked to the renewal of two large outdoor media contracts for 5 and 10 years, as mentioned in 2021 accounts, resulted in a technical c. 75 basis point impact, entirely offset in depreciation; those contracts were accounted for as cost of sales in 2021, and are now accounted for as right of use and lease liability leading to depreciation.
Depreciation and amortization expense was
The operating margin amounted to
Operating margin rates were
Amortization of intangibles arising from acquisitions totaled
Operating income totaled
The financial result, comprising the cost of net financial debt and other financial charges and income, was an expense of
-
The net charge on net financial debt was
17 million euros in 2022 (compared to a charge of85 million euros in 2021). It included102 million euros of interest largely related to Epsilon’s acquisition debt, partly mitigated by interest income of85 million euros , a71 million euros increase compared to 2021, reflecting higher cash balances and interest rates, in particular in theU.S. -
Other financial income and expenses were a charge of
100 million euros in 2022, notably composed by87 million euros interest on lease liabilities and 9 million in income from the fair value remeasurement of Mutual Funds. In 2021, other financial income and expenses were a charge of33 million euros , notably composed of70 million euros interest on lease liabilities and 42 million in income from the fair value remeasurement of Mutual Funds.
The revaluation of earn-out payments amounted to a loss of
The tax charge is
The share in profit of associates was an income of
Minority interests were negligible compared to an income of
Overall, net income attributable to the Groupe was
Free Cash Flow
EUR million |
|
FY 2022 |
FY 2021 |
|
EBITDA |
2,801 |
2,317 |
||
Financial interest paid (net) |
(17) |
(80) |
||
Repayment of lease liabilities and related interests |
(404) |
(365) |
||
Tax paid |
(430) |
(362) |
||
Other |
51 |
53 |
||
Cash Flow from operations before change in WCR |
2,001 |
1,563 |
||
Investments in fixed assets (net) |
(194) |
(136) |
||
Free cash-flow before changes in WCR |
1,807 |
1,427 |
||
TCJA transitional cash tax related to 2022 paid in |
(110) |
- |
||
Free cash-flow before changes in WCR after TCJA paid in 2023 |
1,697 |
1,427 |
Financial interest paid, which mostly include interests on the acquisition debt of Epsilon and interest income from cash on balance sheet, amounted to
As a result, the Groupe’s reported free cash flow, before change in working capital requirements, equals to
In
Including this additional payment, the free cash flow for the Groupe was
Net debt
The Groupe reported a net cash position of
ACQUISITIONS AND DISPOSALS
On
On
On
On
On
On
On
On
On
GOVERNANCE AND APPOINTMENTS
On
The mandates of the Management Board (Directoire) members
The Groupe announced the creation of a new management team called the Directoire + that is comprised of:
-
Carla Serrano , Chief Strategy Officer Publicis Groupe -
Dave Penski , CEO Publicis MediaU.S. -
Nigel Vaz , CEO Publicis Sapient -
Agathe Bousquet , President Publicis Groupe France
OUTLOOK
While the macroeconomic context remains uncertain as we enter 2023, the Groupe is confident in its ability to deliver profitable growth thanks to its unique revenue mix, go-to-market and platform organization.
For the full year 2023, the Groupe aims at delivering a
The Groupe expects to maintain very solid financial ratios again in 2023:
-
Operating margin is expected to be between
17.5% and18% as the Groupe continues to invest in its talent and improve its competitiveness while leveraging its efficient structures in a context of inflation. -
Free Cash Flow is expected at circa
1.6 billion euros 7 in 2023. It includes two transitional payments linked to the new application of theU.S. Tax Cuts and Jobs Act on R&D capitalization confirmed at the end ofDecember 2022 : (i)110 million euros payment related to FY2022 executed inJanuary 2023 , as described in page 10, and (ii) an estimated90 million euros related to FY2023 which will be paid by tranches over the year. Excluding the110 million euros payment related to fiscal year 2022, 2023 Free Cash Flow is consequently expected to be stable compared to 2022 at circa1.7 billion euros .
CASH ALLOCATION
Based on its free cash flow prospects and on its strong financial structure, the Groupe has set the following cash allocation for 2023:
-
Dividend for a total of circa
740 million euros fully paid in cash, corresponding to a€2.90 dividend per share that will be submitted to the vote of its shareholders at its next AGM as ofMay 31 st, 2023. This corresponds to a45.7% payout and is a21% increase compared to prior year. -
A bolt-on acquisition envelope of 500 to
600 million euros , broadly in line with 2022, to continue strengthening the Groupe’s data, tech and commerce capabilities. -
A share repurchase plan of circa
200 million euros in order to stabilize the number of shares in circulation. The repurchase plan aims at covering the existing Long Term Incentive Plans of the Groupe for a total of circa 3 million shares. -
Further deleveraging, by circa
100 million euros .
GROUPE ESG IN 2022
The actions undertaken by the Groupe in terms of ESG are progressing, as shown by the external ESG assessments and the inclusion of
The health and protection of employees remained a constant concern throughout 2022 in view of the health situation in each country; a large majority of the Groupe's employees continued to work from home, while a hybrid organizational model was also put in place, alternating between telecommuting and office work in many agencies. The services implemented during the pandemic to help everyone cope with physical and psychological fatigue have been continued and integrated into the local healthcare offer accessible to all, to enable better mental and physical health.
#WorkWithCancer
In
- Secure the salary of employees affected by illness for at least one year;
- Offer employees concerned individualized support to help them manage their professional and personal difficulties;
- Create an internal community of people directly or indirectly affected by the disease within the company;
- Allow employees who are caregivers to have access to individualized support to help them cope with this complicated period.
Diversity, Equity & Inclusion
In
2022 was an important year in terms of sharing value with employees, with all employees who do not receive a bonus and have a certain length of service receiving an additional week's salary on two occasions: in
The Groupe's objective of having
In terms of training, the Marcel Classes platform continued to federate programs that allow employees to improve their skills and learn about new digital work environments. Marcel has also set up the Growth Dashboard, which is a personalized approach to the various contents that employees can access according to their professional interests. Finally, Marcel has a key role in supporting employees through its 120 dynamic internal communities.
2022 was the first year of the #WorkYourWorld internal program, allowing employees to work for six weeks in a country or city of their choice; 2,340 employees benefited from it for an average stay of 33 days.
Responsible marketing
In terms of responsible, inclusive and sustainable marketing, the Groupe has continued its efforts in each activity with the aim of improving professional practices and standards. The level of maturity of French agencies (Publicis France has maintained its position as the leading network of agencies with the "RSE Actives" label awarded by the French interprofessional body in partnership with Afnor, with 11 agencies certified) has made it possible to launch the NIBI (No Impact For Big Impact) program internationally. This training is designed to enable employees to integrate eco&socio-design into their daily practices and to develop specific professional processes, then to share these developments with clients.
The OnceForAllCoalition, which focuses on media for underrepresented populations in the
Business ethics issues are an integral part of the Groupe's business and of the objective to maintain high standards in key areas such as anti-corruption, data protection and information systems security.
Fight against Climate Change
In terms of the fight against climate change, Groupe targets validated by the SBTi (Science Based Targets Initiative) outline a trajectory to reduce carbon emissions by
Our proprietary tool for assessing the impacts of client campaigns and projects, A.L.I.C.E (Advertising Limiting Impacts & Carbon Emissions), has been reviewed by independent third parties to strengthen the robustness of the calculations, has established technical partnerships for calculating the media footprint. At the same time, the Group is participating in the sectoral work led by Ad Net Zero, aimed at standardizing the methodologies for calculating the carbon footprint of our businesses, particularly the media sector.
The members of the ESG Committee and the members of the Supervisory Board who so wished have received training on climate issues in order to better understand the challenges in this area. As an extension of the work carried out in the area of climate risk analysis, an internal
For the third year, the Viva la Difference internal seminar brought together virtually all of the Groupe's employees in
NEW BUSINESS
McDonald’s (Media), Walmart (Media), Toyota Motor Corporation (Media, DBT, Influence),
ByteDance (Media), L'Oréal (Media/Content/Production),
LATAM
GLOBAL
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,
About
www.publicisgroupe.com | Twitter:@PublicisGroupe | Facebook | LinkedIn | YouTube |
Appendices
Net revenue: organic growth calculation |
||||||||
(million euro) |
Q1 |
Q2 |
Q3 |
Q4 |
FY |
|
Impact of
|
|
2021 net revenue |
2,392 |
2,539 |
2,621 |
2,935 |
10,487 |
|
GBP (2) |
7 |
Currency impact (2) |
125 |
229 |
295 |
215 |
864 |
|
USD (2) |
745 |
2021 net revenue at 2022 exchange rates (a) |
2,517 |
2,768 |
2,916 |
3,150 |
11,351 |
|
Others |
112 |
2022 net revenue before acquisition impact (1) (b) |
2,781 |
3,052 |
3,215 |
3,447 |
12,495 |
|
Total |
864 |
Net revenue from acquisitions (1) |
19 |
21 |
22 |
15 |
77 |
|
|
|
2022 net revenue |
2,800 |
3,073 |
3,237 |
3,462 |
12,572 |
|
|
|
Organic growth (b/a) |
+ |
+ |
+ |
+ |
+ |
|
|
|
(1) |
Acquisitions (CitrusAd, Tremend, Profitero, Boomerang, Balance Internet, BBK, Wiredcraft, Retargetly, Cheat, Changi, |
|
|
||
(2) |
EUR = |
|
EUR = |
Definitions
Net revenue or Revenue less pass-through costs: Pass-through costs mainly concern production and media activities, as well as various expenses incumbent on clients. These items that can be re-billed to clients do not come within the scope of assessment of operations, net revenue is a more relevant indicator to measure the operational performance of the Groupe’s activities.
Organic growth: Change in net revenue excluding the impact of acquisitions, disposals and currencies.
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization): Operating margin before depreciation & amortization.
Operating margin: Revenue after personnel costs, other operating expenses (excl. non-current income and expense) and depreciation (excl. amortization of intangibles arising on acquisitions).
Operating margin rate: Operating margin as a percentage of net revenue.
Headline Group Net Income: Net income attributable to the Groupe, after elimination of impairment charges / real estate transformation expenses, amortization of intangibles arising on acquisitions, the main capital gains (or losses) on disposals, change in the fair value of financial assets and the revaluation of earn-out costs.
EPS (Earnings per share): Group net income divided by average number of shares, not diluted.
EPS, diluted (Earnings per share, diluted): Group net income divided by average number of shares, diluted.
Headline EPS, diluted (Headline Earnings per share, diluted): Headline group net income, divided by average number of shares, diluted.
Capex: Net acquisitions of tangible and intangible assets, excluding financial investments and other financial assets.
Free Cash Flow before changes in working capital requirements: Net cash flow from operating activities less interests paid & received, repayment of lease liabilities & related interests and before changes in WCR linked to operating activities
Free Cash Flow: Net cash flow from operating activities less interests paid & received, repayment of lease liabilities & related interests
Net Debt (or financial net debt): Sum of long and short financial debt and associated derivatives, net of treasury and cash equivalents, excluding lease liability since 1st
Average net debt: Average of monthly net debt at end of month.
Dividend pay-out: Dividend per share / Headline diluted EPS.
Organic Growth vs. 2019: calculated as ([1 + organic growth (n-2)] * [1 + organic growth (n-1)] * [1 + organic growth (n)])-1
Consolidated income statement
(in millions of euros) |
|
2022 |
2021 |
|
Net revenue8 |
12,572 |
10,487 |
||
Pass-through revenue |
1,624 |
1,251 |
||
Revenue |
14,196 |
11,738 |
||
Personnel costs |
(8,211) |
(6,639) |
||
Other operating costs |
(3,184) |
(2,782) |
||
Operating margin before depreciation & amortization |
2,801 |
2,317 |
||
Depreciation and amortization expense (excluding acquisition-related intangible assets) |
(535) |
(477) |
||
Operating margin |
2,266 |
1,840 |
||
Amortization of intangibles from acquisitions |
(287) |
(256) |
||
Impairment loss |
(109) |
(122) |
||
Non-current income and expenses |
(103) |
(28) |
||
Operating income |
1,767 |
1,434 |
||
Financial expense |
(118) |
(115) |
||
Financial income |
101 |
30 |
||
Cost of net financial debt |
(17) |
(85) |
||
Revaluation of earn-out payments |
(2) |
27 |
||
Other financial income and expenses |
(100) |
(33) |
||
Pre-tax income of consolidated companies |
(1,648) |
1,343 |
||
Income taxes |
(431) |
(307) |
||
Net income of consolidated companies |
1,217 |
1,036 |
||
Share of profit of associates |
5 |
- |
||
Net income |
1,222 |
1,036 |
||
Of which: |
||||
- Net income attributable to non-controlling interests |
- |
9 |
||
Net income attributable to equity holders of the parent company |
1,222 |
1,027 |
||
Per-share data (in euros) - Net income attributable |
||||
to equity holders of the parent company |
||||
Number of shares |
250,972,110 |
248,620,158 |
||
Earnings per share |
4.87 |
4.13 |
||
Number of diluted shares |
253,605,167 |
251,695,105 |
||
Diluted earnings per share |
4.82 |
4.08 |
Consolidated statement of comprehensive income
(in millions of euros) |
|
2022 |
2021 |
|
Net income for the period (a) |
|
1,222 |
1,036 |
|
|
|
|
|
|
Comprehensive income that will not be reclassified to income statement |
|
|
|
|
- Actuarial gains (and losses) on defined benefit plans |
|
42 |
48 |
|
Deferred taxes on comprehensive income that will not be reclassified to income statement |
|
(10) |
(8) |
|
Comprehensive income that may be reclassified to income statement |
|
|
|
|
- Remeasurement of hedging instruments |
|
(21) |
29 |
|
- Consolidation translation adjustments |
|
311 |
590 |
|
Total other comprehensive income (b) |
|
322 |
659 |
|
|
|
|
|
|
Total comprehensive income for the period (a) + (b) |
|
1,544 |
1,695 |
|
Of which: |
|
|
|
|
- Total comprehensive income for the period attributable to non-controlling interests |
|
0 |
9 |
|
- Total comprehensive income for the period attributable to equity holders of the parent company |
|
1,544 |
1,686 |
|
Consolidated balance sheet
(in millions of euros) |
|
|
|
|
Assets |
|
|
|
|
|
|
12,546 |
11,760 |
|
Intangible assets, net |
|
1,247 |
1,379 |
|
Right-of-use assets related to leases |
|
1,753 |
1,489 |
|
Property, plant and equipment, net |
|
610 |
615 |
|
Deferred tax assets |
|
186 |
175 |
|
Investments in associates |
|
55 |
25 |
|
Other financial assets |
|
394 |
276 |
|
Non-current assets |
|
16,791 |
15,719 |
|
Inventories and work-in-progress |
|
327 |
277 |
|
Trade receivables |
|
12,089 |
11,315 |
|
Contract assets |
|
1,149 |
979 |
|
Other receivables and current assets |
|
926 |
897 |
|
Cash and cash equivalents |
|
4,616 |
3,659 |
|
Current assets |
|
19,107 |
17,127 |
|
|
|
|
|
|
Total assets |
|
35,898 |
32,846 |
|
Equity and liabilities |
|
|
||
Share capital |
|
102 |
101 |
|
Additional paid-in capital and retained earnings, Groupe share |
|
9,533 |
8,487 |
|
Equity attributable to holders of the parent company – Groupe share |
|
9,635 |
8,588 |
|
Non-controlling interests (minority interests) |
|
(35) |
(33) |
|
Total equity |
|
9,600 |
8,555 |
|
Long-term borrowings |
|
2,989 |
3,446 |
|
Long-term lease liabilities |
|
2,197 |
1,801 |
|
Deferred tax liabilities |
|
219 |
274 |
|
Long-term provisions |
|
504 |
543 |
|
Non-current liabilities |
|
5,909 |
6,064 |
|
Trade payables |
|
15,660 |
14,479 |
|
Contract liabilities |
|
549 |
470 |
|
Short-term borrowings |
|
627 |
184 |
|
Short-term lease liabilities |
|
360 |
288 |
|
Income taxes payable |
|
486 |
328 |
|
Short-term provisions |
|
291 |
274 |
|
Other creditors and current liabilities |
|
2,416 |
2,204 |
|
Current liabilities |
|
20,389 |
18,227 |
|
|
|
|
||
Total equity and liabilities |
|
35,898 |
32,846 |
Consolidated statement of cash flows
(in millions of euros) |
|
2022 |
2021 |
|
Cash flow from operating activities |
|
|
|
|
Net income |
|
1,222 |
1,036 |
|
Neutralization of non-cash income and expenses: |
|
|
|
|
Income taxes |
|
431 |
307 |
|
Cost of net financial debt |
|
17 |
85 |
|
Capital losses (gains) on disposal of assets (before tax) |
|
103 |
28 |
|
Depreciation, amortization and impairment losses |
|
931 |
855 |
|
Share-based compensation |
|
64 |
52 |
|
Other non-cash income and expenses |
|
86 |
5 |
|
Share of profit of associates |
|
(5) |
- |
|
Dividends received from associates |
|
3 |
2 |
|
Taxes paid |
|
(430) |
(362) |
|
Change in working capital requirements(1) |
|
(5) |
(216) |
|
Net cash flows generated by (used in) operating activities (I) |
|
2,417 |
1,792 |
|
Cash flow from investing activities |
|
|
|
|
Purchases of property, plant and equipment and intangible assets |
|
(198) |
(139) |
|
Disposals of property, plant and equipment and intangible assets |
|
4 |
3 |
|
Purchases of investments and other financial assets, net |
|
11 |
4 |
|
Acquisitions of subsidiaries |
|
(523) |
(276) |
|
Disposals of subsidiaries |
|
(43) |
3 |
|
Net cash flows generated by (used in) investing activities (II) |
|
(749) |
(405) |
|
Cash flow from financing activities |
|
|
|
|
Dividends paid to holders of the parent company |
|
(603) |
(227) |
|
Dividends paid to non-controlling interests |
|
(4) |
(9) |
|
Proceeds from borrowings |
|
- |
9 |
|
Repayment of borrowings |
|
(10) |
(862) |
|
Repayment of lease liabilities |
|
(317) |
(295) |
|
Interest paid on lease liabilities |
|
(87) |
(70) |
|
Interest paid |
|
(101) |
(106) |
|
Interest received |
|
84 |
26 |
|
Buyouts of non-controlling interests |
|
(3) |
(14) |
|
Net (buybacks)/sales of treasury shares and warrants |
|
41 |
(127) |
|
Net cash flows generated by (used in) financing activities (III) |
|
(1,000) |
(1,675) |
|
Impact of exchange rate fluctuations (IV) |
|
300 |
238 |
|
Change in consolidated cash and cash equivalents (I + II + III + IV) |
|
968 |
(50) |
|
Cash and cash equivalents on |
|
3,659 |
3,700 |
|
Bank overdrafts on |
|
(12) |
(3) |
|
Net cash and cash equivalents at beginning of year (V) |
|
3,647 |
3,697 |
|
Cash and cash equivalents at closing date |
|
4,616 |
3,659 |
|
Bank overdrafts at closing date |
|
(1) |
(12) |
|
Net cash and cash equivalents at end of the year (VI) |
|
4,615 |
3,647 |
|
Change in consolidated cash and cash equivalents (VI – V) |
|
968 |
(50) |
|
(1) Breakdown of change in working capital requirements |
|
|
|
|
Change in inventory and work-in-progress |
|
(46) |
(23) |
|
Change in trade receivables and other receivables |
|
(710) |
(1,218) |
|
Change in accounts payable, other payables and provisions |
|
751 |
1,025 |
|
Change in working capital requirements |
|
(5) |
(216) |
Consolidated statement of changes in equity
Number of
|
(in millions of euros) |
Share
|
Additional
|
Reserves
|
Translation
|
Fair
|
Equity
|
Minority
|
Total
|
|||||||||
249,600,509 |
|
101 |
4,581 |
4,056 |
(226) |
76 |
8,588 |
(33) |
8,555 |
|||||||||
|
Net income |
|
|
1,222 |
|
|
1,222 |
0 |
1,222 |
|||||||||
|
Other comprehensive income, net of tax |
|
|
|
311 |
11 |
322 |
0 |
322 |
|||||||||
|
Total comprehensive income for the year |
- |
- |
1,222 |
311 |
11 |
1,544 |
0 |
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 warrant exercise |
1 |
15 |
|
|
|
16 |
|
16 |
|||||||||
1,542,105 |
(Buybacks)/Sales of treasury shares |
|
|
25 |
|
|
25 |
|
25 |
|||||||||
251,992,065 |
|
102 |
4,037 |
5,324 |
85 |
87 |
9,635 |
(35) |
9,600 |
Number of
|
(in millions of euros) |
Share
|
Additional
|
Reserves
|
Translation
|
Fair
|
Equity
|
Minority
|
Total
|
|||||||||
245,577,779 |
|
99 |
4,307 |
3,585 |
(816) |
7 |
7,182 |
(22) |
7,160 |
|||||||||
|
Net income |
|
|
1,027 |
|
|
1,027 |
9 |
1,036 |
|||||||||
|
Other comprehensive income, net of tax |
|
|
|
590 |
69 |
659 |
|
659 |
|||||||||
|
Total comprehensive income for the year |
|
|
1,027 |
590 |
69 |
1,686 |
9 |
1,695 |
|||||||||
5,018,232 |
Dividends |
2 |
264 |
(493) |
|
|
(227) |
(9) |
(236) |
|||||||||
296,350 |
Share-based compensation, net of tax |
|
|
61 |
|
|
61 |
|
61 |
|||||||||
|
Effect of acquisitions and commitments to buy-out non-controlling interests |
|
|
13 |
|
|
13 |
(11) |
2 |
|||||||||
378,789 |
Equity warrant exercise |
|
10 |
|
|
|
10 |
|
10 |
|||||||||
(1,670,641) |
(Buybacks)/Sales of treasury shares |
|
|
(137) |
|
|
(137) |
|
(137) |
|||||||||
249,600,509 |
|
101 |
4,581 |
4,056 |
(226) |
76 |
8,588 |
(33) |
8,555 |
Earnings per share (basic and diluted)
(in millions of euros, except for share data) |
|
2022 |
2021 |
|||
Net income used for the calculation of earnings per share |
|
|
|
|||
Net income share attributable to equity holders of the parent company |
A |
1,222 |
1,027 |
|||
Impact of dilutive instruments: |
|
|
|
|||
- Savings in financial expenses related to the conversion of debt instruments, net of tax |
|
- |
- |
|||
Groupe net income – diluted |
B |
1,222 |
1,027 |
|||
Number of shares used to calculate earnings per share |
|
|
|
|||
Number of shares at |
|
253,462,409 |
247,769,038 |
|||
Shares created over the year |
|
393,965 |
2,929,864 |
|||
|
|
(2,884,264) |
(2,078,744) |
|||
Average number of shares used for the calculation |
C |
250,972,110 |
248,620,158 |
|||
Impact of dilutive instruments: |
|
|
|
|||
- Free shares and dilutive stock options (1) |
|
2,633,057 |
2,784,437 |
|||
- Equity warrants (BSA) (1) |
|
- |
290,510 |
|||
Number of diluted shares |
D |
253,605,167 |
251,695,105 |
|||
(in euros) |
|
|
|
|||
Earnings per share |
A/C |
4.87 |
4.13 |
|||
|
|
|
|
|||
Diluted earnings per share |
B/D |
4.82 |
4.08 |
(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. At |
Headline earnings per share (basic and diluted)
(in millions of euros, except for share data) |
|
2022 |
2021 |
|||
Net income used to calculate headline earnings per share (1) |
|
|
|
|||
Net income share attributable to equity holders of the parent company |
|
1,222 |
1,027 |
|||
Items excluded: |
|
|
|
|||
- Amortization of intangibles from acquisitions, net of tax |
|
215 |
191 |
|||
- Impairment loss (2), net of tax |
|
80 |
91 |
|||
- Main capital gains and losses on disposal of assets and fair value adjustment of financial assets, net of tax |
|
92 |
(18) |
|||
- Revaluation of earn-out payments |
|
2 |
(27) |
|||
Headline Groupe net income |
E |
1,611 |
1,264 |
|||
Impact of dilutive instruments: |
|
|
|
|||
- Savings in financial expenses related to the conversion of debt instruments, net of tax |
|
- |
- |
|||
Headline Groupe net income, diluted |
F |
1,611 |
1,264 |
|||
|
|
|
|
|||
Number of shares used to calculate earnings per share |
|
|
|
|||
Number of shares at |
|
253,462,409 |
247,769,038 |
|||
Shares created over the year |
|
393,965 |
2,929,864 |
|||
|
|
(2,884,264) |
(2,078,744) |
|||
Average number of shares used for the calculation |
C |
250,972,110 |
248,620,158 |
|||
Impact of dilutive instruments: |
|
|
|
|||
- Free shares and dilutive stock options |
|
2,633,057 |
2,784,437 |
|||
- Equity warrants (BSA) |
|
- |
290,510 |
|||
Number of diluted shares |
D |
253,605,167 |
251,695,105 |
|||
(in euros) |
|
|
|
|||
Headline earnings per share(1) |
E/C |
6.42 |
5.08 |
|||
|
|
|
|
|||
Headline earnings per share – diluted(1) |
F/D |
6.35 |
5.02 |
(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) |
This amount includes impairment losses on goodwill for |
__________________________
1 Free Cash Flow (FCF) before change in Working Capital requirement.
Reported 2022 FCF at
2 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
3 To be proposed to the shareholders at the AGM of
4 See note 1 on page 1
5 Excluding Outdoor Media activities & the Drugstore
6 Excluding Outdoor Media activities & the Drugstore
7 Based on
8 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20230201006007/en/
Corporate Communications
+ 33 (0)1 44 43 70 75
amy.hadfield@publicisgroupe.com
Investor Relations
+ 33 (0)1 44 43 77 88
alessandra.girolami@publicisgroupe.com
Investor Relations
+ 33 (0)1 44 43 70 27
lionel.benchimol@publicisgroupe.com
Lorène Fleury
Investor Relations
+ 33 (0)1 44 43 57 24
lorene.fleury@publicisgroupe.com
Source:
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