Publicis has just kicked off the CAC40 half-year results releases season in France.

As is often the case, the advertising group set the tone, both in terms of content and form. Advertising is one of the leading indicators of the health of companies in all sectors.

In terms of form, Publicis is sober and even more concise than in previous years. For the half-yearly reports, the companies are going straight to the point.

In terms of substance, the Group is concentrating on four messages: a new record topline, an operating margin among the best in its sector, a strong commitment to the use of artificial intelligence, and guidance that predicts that the end of 2023 will be even better than anticipated a few months ago. But extra-financial performance is not mentioned, even though it featured prominently in the group’s half-yearly results in July 2022. Is this a sign that the financial community is taking a step backwards?

Publicis is now forecasting organic growth in net income of around 5% and an operating margin close to 18% for 2023. This is at the top end of the range announced last February.

In the first half of the year, Publicis’ net income rose by 7% year-on-year on an organic basis, to €6.32 billion, driven by Europe (+14%) and the Middle East & Africa (+11%).

The operating margin was 17% in the first half, a record already achieved in the corresponding period of 2022. It peaked at 18.6% in North America. The forecast of 18% for the year implies a further improvement in the second half of 2023, which will combine price increases and cost reductions. However, Publicis has not announced any staff cuts.

Publicis’ net profit rose by 16% in the first half, to €623 million. Thanks to share buy-backs, earnings per share posted double-digit growth, up 11.3%.

Publicis recalls its strategic positioning on the use of artificial intelligence to drive growth, with its recent acquisitions, Epsilon, Sapient and MRCL.

Extra-financial performance is not mentioned. In July 2022, when announcing its half-year results, Publicis proudly highlighted its rankings by ESG rating agencies, its commitments to diversity and inclusion, its responsible marketing and its climate objectives. This silence is part of a global trend that began in the United States: the world’s leading financial managers are now divided on the priority to be given to ESG.


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