THE TREND
(Boursier.com) — The CAC40 is perfectly stable this Friday noon at 7,665 points. Hermes And L’Oreal lead the session. Hermès has once again exceeded expectations and reached new all-time highs while L’Oréal’s annual accounts are sanctioned. The market capitalization of Hermès, 220 billion euros, is now hot on the heels of that of L’Oréal (240 billion) in second place in the CAC40. A CAC40 index which therefore sees the weighting of luxury further increasing.
Concerning the Fed’s interest rate cut, the start date and pace of which continue to question investors, the latter seem to make up their minds and are now a large majority who no longer believe in a cut at the next meeting. of the Fed in March, while opinions are very divided for the next one on May 1…
Many members of the Fed have spoken in recent hours, with interventions from Adriana Kugler, Susan Collins, Thomas Barkin and Michelle Bowman… Governor Kugler presented her optimistic vision regarding the continuation of the fall in inflation, while emphasizing that there is no rush to reduce rates. Collins, president of the Boston Fed, said it was necessary to have more evidence of easing inflation before easing monetary policy. Barkin, president of the Richmond Fed, also said it made sense to be patient with rates. Governor Bowman, in the same spirit, indicated that it was not yet time to cut rates, while recognizing the decline in inflation…
RISING VALUES
* Strongest increase in the CAC40, Hermes gained 4.40% to 2,165 points. The title even exceeded 2,200 euros this morning, a new historic achievement after the luxury group reported a greater than expected increase in its sales in the fourth quarter. Overall, in 2023, the group’s consolidated turnover amounts to €13,427 million, up 21% at constant exchange rates and 16% at current exchange rates compared to 2022. Current operating income is established at 5,650 ME, or 42.1% of sales. The group’s net profit reached €4,311 million, up 28%. In the fourth quarter of 2023, sales reached €3,364 million, up 18% at constant exchange rates and 13% at current exchange rates, despite the particularly high basis of comparison in America and Asia. The group is continuing the trend recorded in the third quarter thanks to sustained activity. At the General Meeting of April 30, 2024, it will be proposed to set the dividend at 15 euros per share. The deposit of 3.50 euros, which will be paid on February 15, 2024, will be deducted from the dividend which will be decided by the General Meeting. An exceptional dividend of 10 euros per share will also be proposed to the General Meeting.
* Guerbet (+9.20% to 25.60 Euros) published 2023 turnover of 785.7 million euros, up 4.3% compared to 2022. The activity at constant exchange rate s ‘established an increase of 6.4% over the year. Perfectly in line with the announced objectives, this performance was fueled by both an increase in volumes and positive price effects. Guerbet announced that its restated EBITDA margin rate would be above the target of 11%. This objective is in fact largely supported by the favorable evolution of the product mix as well as by the cost control observed in the fourth quarter of 2023.
* Ubisoft climbs by more than 18% to 23.6 euros. The group presented a turnover of €606.4 million for the third quarter of its 2023-2024 financial year, down 21.5% (19.5% at constant exchange rates) over one year. IFRS 15 turnover for the first nine months 2023-2024 amounts to €1,442.5 million, down 4.1% (1.9% at constant exchange rates). Net bookings for the third quarter of 2023-2024 amounted to €626.2 million, slightly above the Group’s objective of around €610 million and down 13.8% (11.7% at constant exchange rates). . Net bookings for the first nine months of 2023-24 amounted to €1,448.6 million, up 1.6% (3.9% at constant exchange rates). The group confirmed its annual objectives of strong growth in net bookings and non-IFRS operating profit of around €400 million. Net bookings for the fourth quarter are expected to rise sharply, which will lead to a record annual net bookings. The extent of the ‘line-up’ for the 2024-2025 financial year will be revealed in May and will include Assassin’s Creed codename Red and Star Wars Outlaws on the premium side and The Division Resurgence and Rainbow Six Mobile on the free-to-play side.
* Kering gained again by almost 1% to 413 euros this Friday, after a gain of already 5% yesterday after having published a limited decline of 4% in its turnover in the fourth quarter on a comparable basis and warned of a decline in its current operating profit in 2024 due to investments dedicated to relaunching its sales.
FALLING VALUES
* Strongest drop in the CAC40, L’Oreal lost 5.3% to 429 euros. The group published a 6.9% increase in its sales in the fourth quarter of 2023, a slower progression than in the previous quarter, as the travel retail activity continues to feel the effects of the new regulations on the market. parallel to resale in China. Turnover thus reached 10.61 billion euros in the fourth quarter, slightly below expectations of around 10.80 billion euros, according to the market consensus. L’Oréal’s operating margin for 2023 stood at 19.8%, in line with market expectations, while turnover stood at 41.18 billion euros (+7. 6% as published and +11% as comparable), which corresponds to further outperformance of a still dynamic global beauty market. Operating profit came to 8,143.3 million euros, net profit per share to 12.08 euros, up +7.3%. The proposed dividend is 6.60 euros, an increase of 10%.
* Akwel fell 5.5% to 15.6 euros. Concerning the current financial year, and based on projections of stable global automobile production in its main markets in Europe and North America, Akwel currently anticipates a level of activity equivalent to that of 2023. However, the provisioning of industrial restructuring costs in France with the closure of the Gournay site, announced in the last quarter of 2023 and which will be initiated in the first half of 2024, should weigh on operational and net results.
* XFAB drop of 16% to 7.50 euros. The Ebitda for the year 2023 was however located at the top of the range of 23-27% forecast and reached $245.6 million with an Ebitda margin of 27.1%. This figure should be compared to an Ebitda margin of 18.2% in 2022. Excluding the turnover recognized as progressed according to IFRS 15, the Ebitda margin in 2023 would have been 26.7%.