CAC 40 companies are projected to generate over 120 billion euros in net profits for 2024, marking a decline from 2023’s 123.2 billion euros. Key contributors like Danone showed impressive growth, but major firms such as TotalEnergies and LVMH faced significant profit drops. The luxury sector is mixed, with only Hermès thriving. Companies are cautious about 2025 due to potential tariffs and geopolitical tensions. The report highlights the resilience of multinationals amid economic challenges.
Projected Profits for CAC 40 Companies in 2024
The net cumulative earnings of CAC 40 companies are anticipated to surpass 120 billion euros in 2024, marking the fourth consecutive year of robust profits. However, a recent report indicates a decline year-over-year, primarily affected by prominent firms such as LVMH and TotalEnergies.
Out of the 35 companies that have disclosed their annual financial results, the total net profit reached 123.2 billion euros last year, a drop from 143 billion euros the prior year, reflecting a nearly 14% decrease.
Key Contributors and Challenges in the Market
Excluding the spirits powerhouse Pernod Ricard—whose fiscal year does not align with the calendar year—the profits for the 39 companies currently part of the CAC 40 amounted to 148 billion euros in 2023. This figure includes Accor and Bureau Veritas, which joined the index in 2024.
While Danone’s net profit soared by 129% and the financial sector showed commendable growth, this positive trend was overshadowed by significant declines in net profits among several French giants. TotalEnergies, despite leading in profits, experienced a 26% drop, followed by LVMH (-17%), Stellantis (-71%), Kering (-62%), and STMicroelectronics (-63%).
TotalEnergies faced challenges due to “less favorable” energy prices and declining refining margins after two years of record-breaking profits. In contrast, Kering and Stellantis have already signaled a potential reduction in dividends among the 33 CAC 40 companies that declared dividend targets, while others expect to either maintain or increase payouts.
The remaining companies, including Saint-Gobain and Teleperformance, are set to announce their annual results soon, with Thales and Bouygues following next week.
The cumulative revenue of the 35 groups that have reported stands at 1,541 billion euros, in comparison to 1,711 billion euros generated by all 39 companies in 2023.
Looking ahead, 2024 is expected to witness the first decline in cumulative profits since 2020, a year heavily impacted by the Covid-19 pandemic when net profits plummeted to just 30.6 billion euros. The all-time high was recorded in 2021, with total profits nearing 157 billion euros, largely fueled by Vivendi’s exceptional profit from the sale of Universal Music.
Christopher Dembik, an investment advisor at Pictet AM, noted that the overall results are relatively positive across sectors, aided by a slowdown in inflation. While the financial sector remains strong, the luxury market is experiencing mixed outcomes, particularly due to reduced spending from Chinese consumers. Only Hermès appears to be thriving, achieving record profits.
Notably, the largest French corporations within the CAC 40 are multinationals, which has contributed to their resilience during challenging economic times. Economist Anthony Morlet-Lavidalie from the Rexecode institute remarked that their international presence has allowed them to tap into growth markets globally.
As for 2025, many companies are adopting a cautious stance regarding their outlook, citing potential impacts from tariff increases announced by U.S. President Donald Trump, alongside ongoing geopolitical and trade tensions. However, the extent of these risks remains challenging to quantify, according to Stéphane Colliac, an economist at BNP Paribas.
The annual report compiled by AFP reflects the net profit attributable to each listed company without any adjustments. For those groups publishing their results in dollars, the conversion is based on the average euro exchange rate for 2024.