The United Kingdom's GDP followed a similar trend to that of euro zone countries, albeit more volatile: its GDP is set to grow 0.5% in 2023, a sharp slowdown versus 2022 (up 4.3%). The downturn in global trade affected UK exports (down 0.6%, following a 9% increase in 2022) and imports (down 1.4%, after a 14.6% surge in 2022). As in the euro zone, the public deficit fell slightly, from 5.1% to 4.9% of GDP: public spending shrank by 0.2%. Despite the Bank of England’s tight monetary policy, inflation remained a topic of concern, at 7.4% in 2023 vs. 9.1% in 2022.
The reopening of the Chinese economy, announced in December 2022 following a “Zero Covid” policy, led to a considerable recovery, as GDP grew by 5.2% in 2023, following 3% growth in 2022. The lifting of Covid restrictions mainly boosted consumption: retail sales, for example, rose 18% in April 2023 vs. April 2022, and 12.7% in May. According to the latest figures from November 2023, retail sales were up 10%. Conversely, foreign trade fell sharply: exports were down 4.1% in 2023, and imports dropped by 5.3%. Inflation failed to make a comeback as in Western countries, staying limited at 2% in 2022 and returning to around 0% in 2023, with a risk of deflation. The Chinese economy is still impacted by a major real estate crisis.
The price of oil, energy and foodstuffs dropped in 2023. The global economic slowdown curbed demand for industrial raw materials, while agricultural commodity prices dropped back following a sharp increase the previous year. Year‑end oil prices were close to the lowest of the year despite the conflict between Hamas and Israel, which could lead to major geopolitical consequences in oil‑producing countries.
In this uncertain macroeconomic environment, the advertising market continued to grow in 2023. According to Zenith’s December 2023 forecasts, global advertising spend grew 5.2% in the year, to reach USD 874 billion. Although slightly lower than the June 2023 forecast, growth in 2023 remained at a historically high level, especially since it followed increases of 16% in 2021 and 6% in 2022.
In this context, the Groupe continued to offer its services and products through a unique business mix and positioning to help its customers transform their marketing and business models.
This enabled the Groupe to post another record year in 2023 for all its indicators.
In 2023, the Groupe’s net revenue came in at euro 13,099 million compared to euro 12,572 million in 2022, up +4.2% on a reported basis and +6.3% on an organic basis.
The operating margin was euro 2,363 million, an increase of +4.3% year‑on‑year, resulting in an operating margin rate of18.0%, stable compared to 2022.
The Groupe’s net income was euro 1,312 million, up 7.4% compared to 2022.
Headline net income (as defined in Note 10 of the consolidated financial statements) stood at euro 1,767 million, compared to euro 1,611 million in 2022. Headline diluted net income per share was euro 6.96, an increase of 9.6% compared to 2022.
The balance sheet as of December 31, 2023 showed net cash of euro 909 million compared to net cash of euro 634 million as of December 31, 2022. Average net financial debt stood at euro 432 million in 2023 compared to euro 685 million in 2022.
The dividend that will be proposed to the General Shareholders’ Meeting of May 29, 2024 is euro 3.40 per share. As a percentage of headline diluted earnings per share, it represents a payout ratio of 48.9%, in line with the dividend payout policy of a 45 to 50% payout ratio. Subject to the approval of the General Shareholders’ Meeting, payment of the dividend will be made on July 3, 2024, entirely in cash.
