Universal Registration Document 2023

6. Consolidated Financial Statements 2023 Year - AFR

 

Note 2 Macro‑economic context

Economic environment

Despite a more difficult economic environment, the performance of the Group’s activities is in line with the growth rates and margin rates provided for in the business plans.

Russia‑Ukraine conflict

Given the persistence of the Russian‑Ukrainian conflict, the Group continues to support its employees amidst reduced activity. Personnel costs in 2023 were fully provisioned at December 31, 2022.

As a reminder, Publicis Groupe sold 100% of the share capital of MMS Communication LLC, its Russia‑based subsidiary, during financial year 2022. This transaction is reflected in the financial statements at December 31, 2022 as a disposal loss of euro 87 million in non‑current income.

Note 3 Changes to consolidation scope

3.1 Acquisitions in financial year 2023

The main acquisitions of the period were:

  • in April 2023, the full acquisition of Practia, a technology group that provides digital transformation services to companies. This acquisition will enable the Group to strengthen its positions in the Latin American market and set up a local delivery platform for the North American market. Practia has offices in Argentina, Chile, Mexico, Peru, Brazil, Colombia and Spain, and an operational presence in Uruguay and the United States. The consideration transferred is euro 143 million;
  • in June 2023, the full acquisition of Corra, an e‑commerce entity specializing in business solutions, in particular Adobe Commerce. The acquisition will enable the Group to extend its offerings in digital and omnichannel commerce. The consideration transferred is euro 127 million.

The fair value, at the acquisition date, of the consideration transferred (excluding cash and cash equivalents acquired) for the consolidated entities taken as a whole with the acquisition of exclusive control during the period amounts to euro 289 million. This amount mainly includes:

  • euro 131 million paid out during the period;
  • euro 158 million in earn‑out commitments.

The amount paid out in 2023 for acquisitions (net of cash and cash equivalents acquired) totaled euro 194 million and includes:

  • euro 133 million paid out during the period;
  • euro (10) million in net cash acquired;
  • euro 71 million in earn‑out payments relating to prior acquisitions paid out during the period.

Acquisitions during the period represented less than 1% of consolidated net revenue in financial year 2023 and less than 1% of net income attributable to equity holders of the parent company.