Universal Registration Document 2023

Asia-Pacific saw its net revenue grow by +2.9% an organic basis and decline by 1.7% on a reported basis. China posted +2.2% organic growth despite difficult macroeconomic conditions throughout the year.

Net revenue in the Middle East & Africa region was up +12.4% an organic basis and +5.8% on a reported basis.

In Latin America, organic growth was at +8.9%, while reported net revenue growth was at +18.0%. 

5.3.2 Operating margin and operating income

Operating margin

EBITDA amounted to euro 2,845 million in 2023, compared to euro 2,801 million in 2022, up 1.6%. The EBITDA margin is 21.7% of net revenue.

Personnel costs were euro 8,514 million in 2023, up by 3.7% from euro 8,211 million in 2022. They represent 65.0% of net revenue in 2023, compared to 65.3% in 2022. Fixed personnel costs were euro 7,531 million, representing 57.5% of net revenue, vs. 56.5% in 2022. The cost of freelancers decreased by euro 124 million in 2023, amounting to euro 332 million. Restructuring costs reached euro 111 million, representing less than 1% of net revenue, up from euro 82 million in 2022.

Non‑personnel costs amounted to euro 2,222 million in 2023, compared to euro 2,095 million in 2022. This represented 17.0% of net revenue vs. 16.7% in 2022. These costs include:

• other operating expenses (excluding pass‑through costs, depreciation & amortization) amounted to euro 1,740 million, compared to euro 1,560 million in 2022. This represented 13.3% of net revenue in 2023 compared to12.4% in 2022;
• depreciation and amortization expense was euro 482 million in 2023, vs. euro 535 million in 2022, a reduction of 10% or euro 53 million. It reflects the consolidation of the Groupe's real estate footprint as well as an increase in the share of SaaS platforms used by the Groupe and directly expensed.

The operating margin amounted to euro 2,363 million, up +4.3% compared to 2022. This represents a margin rate of 18.0%, stable versus 2022. Operating margin rates were 19.0% in North America, 17.7% in Europe, 19.0% in Asia‑Pacific, 6.7% in Latin America and 8.7% in the Middle East & Africa region.

Operating income

Amortization of intangibles arising from acquisitions totaled euro 268 million in 2023, down euro 19 million from euro 287 million in 2022.

Impairment losses amounted to euro 153 million (euro 109 million in 2022), essentially related to the real estate consolidation plan "All in One," which leads to a reduction in the number of sites while allowing better collaboration between the teams.

In addition, other net non‑current income is negative, at euro 202 million in 2023 (vs. a negative euro 103 million in 2022), largely reflecting a euro 203 million charge related to the Rosetta settlement. A comprehensive resolution was reached with all 50 American State Attorneys General, the District of Columbia, and certain United States territories related to past work undertaken for opioid manufacturers, primarily by former advertising agency Rosetta, bringing to a close almost three years of discussions. In the context of this settlement, following the payment of USD 343 million to the states, Publicis Health was compensated USD 130 million by its insurers. Consequently, it has recorded a non recurring charge of USD 213 million before tax in the fourth quarter of 2023. In addition, USD 7 million to be paid to the Attorneys General for the cost of investigation and other various costs have been accounted for. The total impact of the settlement before tax in the non‑current income is a charge of USD 220 million, corresponding to euro 203 million. This settlement, in which the Attorneys General recognized Publicis Health’s "good faith and responsible corporate citizenship," is in no way an admission of wrongdoing or liability.

Operating income totaled euro 1,740 million in 2023, after euro 1,767 million in 2022.

5.3.3 Other income statement items

The financial result, comprising the cost of net financial debt and other financial charges and income, was a charge of euro 21 million in 2023, compared to a charge of euro 117 million in 2022.

• The cost of net financial debt was an income of euro 78 million in 2023, compared to a charge of euro 17 million in 2022. It included a euro 99 million interest expense largely related to Epsilon’s acquisition debt (euro 102 million in 2022), partly mitigated by financial income of euro 178 million, up compared to euro 85 million in 2022, largely reflecting higher remuneration on cash balances.
• Other financial income and expenses were a charge of euro 99 million in 2023, notably composed by euro 79 million interest on lease liabilities and euro 1 million in income from the fair value remeasurement of mutual funds. In 2022, other financial income and expenses were a charge of euro 100 million, notably composed of euro 87 million interest on lease liabilities and euro 9 million in income from the fair value remeasurement of mutual funds.

The revaluation of earn‑out payments amounted to an income of euro 12 million compared to a loss of euro 2 million in 2022.

The income tax charge was euro 415 million in 2023, corresponding to an effective tax rate of 24.1%. This compared to euro 431 million in 2022, corresponding to an effective tax rate of 24.8%.

The share in profit of associates was an income of euro 6 million (compared to an income of euro 5 million in 2022). Minority interests were a gain of euro 10 million in 2023, when they were negligible in 2022.

Overall, net income attributable to the Groupe was euro 1,312 million in 2023, an increase of 7.4% compared to euro 1,222 million in 2022. Finally, the Groupe’s earnings per share was euro 5.23 in 2023, an increase of 7.4% compared to euro 4.87 in 2022.