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The net profit of the French CAC 40 companies fell in 2022. However, thanks to the luxury and energy sectors, they are breaking some records and accumulating 142 billion euros in earnings. The year 2023 promises to be prolific for shareholders.
France’s CAC 40 companies made 142 billion euros in cumulative profits in 2022, thanks to records in luxury and energy. According to AFP, their revenues are up 19% to 1,729 billion euros, thanks to inflation-inflated sales for many groups.
Still, net profit is down 9% from 2021, when it was nearly 156 billion euros. At that time, Vivendi had made an exceptional profit of nearly 25 billion euros thanks to a disposal. However, in 2022, the media giant suffered a historic loss of 1 billion euros, the worst performance of the CAC 40. The calculation does not take into account two groups, Pernod Ricard and Alstom, which have different accounting periods.
TotalEnergies and CMA-CGM in great shape
Despite this drop in total profit, some companies have performed remarkably well. Starting with the energy sector and its flagship company TotalEnergies, which posted a record gain of 19.5 billion euros. It is ahead of carmaker Stellantis, the merger of Groupe PSA and Fiat Chrysler Automobiles, which posted a profit of 16.8 billion euros. Overall, despite significant charges related to the war in Ukraine and the increase in its prices, the energy sector makes a gain of 23.2 billion euros in 2022, an increase of 14%.
Note that the largest profit of a French company in 2022, $24.9 billion, was made by CMA-CGM, the world’s third largest unlisted shipping company.
Luxury performs well
The major luxury groups of the CAC 40, such as LVMH, Kering, Hermès and L’Oréal, have passed on the increase in production costs to their sales prices. As a result, they have seen their profits swell by 23% to 4.5 billion euros, an 80% increase compared to 2019.
However, the companies with the highest profit increases in 2022 are Orange (820% growth compared to 2021) and semiconductor manufacturer STMicroelectronics (+118%), which benefited from strong global demand for electronic chips, a rare commodity.
On the other hand, the Renault group will record the second highest net loss of the CAC 40 in 2022, at 338 million euros. This is largely due to a charge of 2.3 billion euros generated by the sale of Avtovaz, the Russian manufacturer of the Lada car brand.
Shareholders rewarded
There has been a lot of criticism recently, especially that companies are not sharing their profits with their employees and not doing enough to fight climate change.
But the CAC40 companies have nevertheless increased their shareholders’ dividends in 2022. And none of them have announced a decrease in these payments in 2023, even though they have already reached a record in France (56.5 billion euros) and in the world (1,560 billion dollars) in 2022.
LVMH, which paid €5 billion in corporate taxes worldwide, plans to pay about €6 billion to its shareholders, of which nearly €3 billion will go to Bernard Arnault’s family. The group also plans to distribute 400 million euros to its 39,000 employees in France. TotalEnergies, for its part, plans to invest 16 billion dollars, including 4 billion in “low-carbon energies”, and to pay out nearly 9 billion euros in dividends.
Read also >CAC 40 rises sharply as the luxury sector benefits from the lifting of restrictions in China
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The net profit of the French CAC 40 companies fell in 2022. However, thanks to the luxury and energy sectors, they are breaking some records and accumulating 142 billion euros in earnings. The year 2023 promises to be prolific for shareholders.
France’s CAC 40 companies made 142 billion euros in cumulative profits in 2022, thanks to records in luxury and energy. According to AFP, their revenues are up 19% to 1,729 billion euros, thanks to inflation-inflated sales for many groups.
Still, net profit is down 9% from 2021, when it was nearly 156 billion euros. At that time, Vivendi had made an exceptional profit of nearly 25 billion euros thanks to a disposal. However, in 2022, the media giant suffered a historic loss of 1 billion euros, the worst performance of the CAC 40. The calculation does not take into account two groups, Pernod Ricard and Alstom, which have different accounting periods.
TotalEnergies and CMA-CGM in great shape
Despite this drop in total profit, some companies have performed remarkably well. Starting with the energy sector and its flagship company TotalEnergies, which posted a record gain of 19.5 billion euros. It is ahead of carmaker Stellantis, the merger of Groupe PSA and Fiat Chrysler Automobiles, which posted a profit of 16.8 billion euros. Overall, despite significant charges related to the war in Ukraine and the increase in its prices, the energy sector makes a gain of 23.2 billion euros in 2022, an increase of 14%.
Note that the largest profit of a French company in 2022, $24.9 billion, was made by CMA-CGM, the world’s third largest unlisted shipping company.
Luxury performs well
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The net profit of the French CAC 40 companies fell in 2022. However, thanks to the luxury and energy sectors, they are breaking some records and accumulating 142 billion euros in earnings. The year 2023 promises to be prolific for shareholders.
France’s CAC 40 companies made 142 billion euros in cumulative profits in 2022, thanks to records in luxury and energy. According to AFP, their revenues are up 19% to 1,729 billion euros, thanks to inflation-inflated sales for many groups.
Still, net profit is down 9% from 2021, when it was nearly 156 billion euros. At that time, Vivendi had made an exceptional profit of nearly 25 billion euros thanks to a disposal. However, in 2022, the media giant suffered a historic loss of 1 billion euros, the worst performance of the CAC 40. The calculation does not take into account two groups, Pernod Ricard and Alstom, which have different accounting periods.
TotalEnergies and CMA-CGM in great shape
Despite this drop in total profit, some companies have performed remarkably well. Starting with the energy sector and its flagship company TotalEnergies, which posted a record gain of 19.5 billion euros. It is ahead of carmaker Stellantis, the merger of Groupe PSA and Fiat Chrysler Automobiles, which posted a profit of 16.8 billion euros. Overall, despite significant charges related to the war in Ukraine and the increase in its prices, the energy sector makes a gain of 23.2 billion euros in 2022, an increase of 14%.
Note that the largest profit of a French company in 2022, $24.9 billion, was made by CMA-CGM, the world’s third largest unlisted shipping company.
Luxury performs well
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