CAC 40: Prosperous 2023, $120 billion in profits for 25 of 40 French giants

With war in Ukraine, tensions in the Middle East, an inflation shock and even an energy crisis, investors were eagerly awaiting the traditional avalanche of results published by major French companies in February to gauge their performance.

Overall, thanks to the luxury, transport, energy and banking sectors, the combined net profits of the largest French companies in the CAC 40 have already exceeded €120 billion (€123.9 billion) in 2023, while only 25 of the 40 groups have published their reports. annual results. The results are almost similar to last year’s figures. In 2022, these 25 companies together contributed almost 125 billion euros out of more than 143 billion euros in profits for the entire CAC. The companies, which have not yet published their annual results, collectively made about 18.4 billion euros in profits in 2022.

At the moment, the turnover of these 25 groups over the past year is already close to 1.185 billion euros. In 2022, the total CAC companies amounted to EUR 1.721 billion. Therefore, we will have to wait a little longer to have an accurate picture of the companies’ performance.

Many sectors are in green condition

This is the third year in a row that the 40 CAC companies together earned more than €100 billion in profits. The luxury sector continued to shine despite the market slowdown, with Hermès, Kering, L’Oréal and LVMH combining for profits of almost 29 billion euros, up 7% despite Kering’s 17% decline. In banking, profits at BNP Paribas, Crédit Agricole and Société Générale increased by 14% to nearly €20 billion.

Transport also boosts the balance sheet, with Renault making a profit of 2.2 billion euros after a loss of 350 million in 2022. And Stellantis reported record profits of 18.6 billion euros, the index’s second-highest result. Once again, the French automobile concern was punished by a strike in North America. TotalEnergies takes first place. Its profits rose slightly in dollars, to 21.4 billion, but remained relatively stable in euros: 19.8 billion euros, up from 19.5 billion in 2022.

Schneider Electric announced that its net profit rose 15% to €4 billion in 2023, driven by products and services related to the energy transition. Its turnover in electrical equipment and industrial automation increased by more than 35.9 billion, an increase of 5.1%. The group noted a “gradual recovery in demand” for products in the second half of the year in the consumer segments and in the manufacturing market.

Airbus good health

Even as Airbus’s 2023 net profit fell 11% to €3.8 billion due to costs incurred in its space activities, the European aircraft maker achieved the third-highest revenue in its history after €4.2 billion , received in 2022. “In 2023, we recorded significant order volumes across our entire business and we delivered on our commitments. This is a remarkable result given the complexity of the operational context,” said Airbus Executive Chairman Guillaume Faury.

After missing its 2022 delivery target, the planemaker managed to deliver 735 planes to customers in 2023, despite ongoing supply chain challenges to ramp up growth. And the company plans to deliver “around 800” aircraft in 2024 – the same number as it delivered in 2018, before the Covid pandemic. The plane maker also received 2,094 net orders last year, beating its previous record set in 2013. Airbus built on the success of its narrow-body A320 family aircraft and its long-haul A350 aircraft.

Major European stock exchanges are set to prepare to open this Thursday, with bourses encouraged by a surge in results and indicators. At the time of opening, CAC 40 should be above the threshold of 7700 points. The previous absolute record of 7702.95 points was reached on January 31. In fact, the forecast is quite positive. The only uncertainty: All companies are hoping that, with interest rates continuing to fall, consumption will begin to grow quickly again.