THE TREND
(Boursier.com) — The CAC40 relaunches this Thursday, up 0.5% around 7,650 points in a market driven by several leading publications. Kering’s annual accounts, although in decline, have notably reassured which allows luxury to support the trend. The banking sector, on the other hand, remains under discussion with the Crédit Agricole accounts which are sanctioned.
In the United States, the S&P 500 almost crossed 5,000 points for the first time in its history last night and found itself at its all-time highs! Across the Atlantic, four members of the Fed’s board of governors recalled on Wednesday that the central bank would wait until it was certain that inflation would return to its 2% target before lowering its rates…
RISING VALUES
* Soitec gained 4% to 136.5 euros. The objectives for the entire 2023-2024 financial year are revised. Revenue is expected to fall by around 10% at constant scope and exchange rates, compared to a decline of around mid-single digit previously expected. The EBITDA margin is expected to be around 34% compared to 35% previously.
* Kering (+3% to 401.8 euros) published a 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. In 2023, current operating profit stood at 4.746 billion euros, down 15%. Net income, Group share, stands at €2.983 billion. The proposed ordinary dividend is 14 euros per share. “In a context where growth in the sector is expected to continue to normalize, the impact of this investment strategy will weigh on the group’s annual current operating profit, which should be down compared to the level published in 2023, particularly in the first half”, warned the Kering group. The 2023 performance of the Gucci brand, however, reassured investors.
* In luxury, Hermes And LVMH also increased by around 1.5%.
* At the top of the CAC40, Unibail-Rodamco-Westfield (+5.5%) revealed this morning a recurring net result up 5.2% over one year, to 1.41 billion euros, while, per share, it stood at 9.62 euros, up 3.3%. For the past financial year, the group aimed at at least 9.50 euros. The group now expects adjusted recurring net income per share of between 9.65 and 9.80 euros this year, while its key indicators grew more than expected last year. Building on these results, URW decided to renew its distribution policy. The group will propose at its general meeting on April 30 the payment of a dividend of 2.50 euros per share for the 2023 financial year.
* Societe Generale (stable) exceeded analysts’ expectations, thanks in particular to the recovery of its retail banking activity in France. Over the last three months of the fiscal year, the bank’s group share of net income fell by 59.8% year-on-year, to €430 million, above the market consensus of €333 million. Net banking income fell by 9.9% in the fourth quarter, to 5.96 billion euros, above the 5.86 billion euros expected here also by analysts. Market activities fell by 0.8%, the bank further indicated, the good performance of equity activities having offset the 22.1% decline in rates, credit and foreign exchange activities.
FALLING VALUES
* Agricultural credit fell by more than 5% to 12.3 euros. The group published mixed quarterly results, with retail and merchant banking activities offsetting lower revenues from the insurance business. The group’s net profit in the fourth quarter thus fell by 25.2% year-on-year to 1.33 billion euros, while analysts on average expected an amount close to 1.28 billion euros. The group’s net banking income for the past period stood at €6.04 billion, up 1.2% compared to a market consensus of around €6.16 billion.
* Publicis (stable) presented a net income of 3.54 billion euros in the fourth quarter of 2023, organic growth of 5.7%, in line with the latest outlook communicated by the group in October. The group expects annual organic growth in its net income of between 4% and 5%, after an increase of 5.7% in the fourth quarter of 2023. “In a particularly difficult macroeconomic context, and after six years transformation, Publicis has clearly stood out in 2023”, underlined Arthur Sadoun, Chairman of the Management Board of Publicis. The group forecasts an operating margin rate of 18% for 2024, stable compared to 2023, including an operating expense of 100 million euros dedicated to the artificial intelligence investment plan.
* Vinci (stable): consolidated turnover amounts to 68.8 billion euros, up 11.6% (organic growth: +9.9%; impacts of changes in scope: +2.5% ; exchange rate variations: -0.9%). This trend confirms the good momentum of the Group’s activities both in France and internationally. Operating Profit on Activity (ROPA) shows an increase of 22.5% to 8.4 billion euros (6.8 billion euros in 2022). Vinci is planning a further increase in its turnover for 2024, but this should be of a lesser magnitude than that achieved in 2023. Results should also improve. The Board approved the payment of a dividend for the 2023 financial year in the amount of 4.50 euros per share, payable entirely in cash.
* Hexaom (-2.40% to 20.1 euros) achieved 2023 turnover of 1.016 billion euros, up 5.4% on a like-for-like basis. In the fourth quarter, turnover of €260.6 million was down 2.4% compared to the same period of 2022. For House Construction, order intake for the 2023 financial year stood at 559.4 ME, down 40.6% in value and 44.7% in number. Hexaom confirms an improvement in its operational profitability for the entire 2023 financial year but forecasts a decline in its production of around 25 to 30% in 2024.