Cac 40 : TotalEnergies, ArcelorMittal, Engie ou LVMH… Les géants du CAC 40 affichent des bénéfices record

Cac 40 : TotalEnergies, ArcelorMittal, Engie ou LVMH... Les géants du CAC 40 affichent des bénéfices record

(BFM Bourse) – The CAC 40 giants are in splendid health despite the outbreak of war in Ukraine and raging inflation. The heavyweights of the Parisian dimension already accumulate nearly 73,000 million profits in the first half. That is 24% more than in the first half of 2021. TotalEnergies, ArcelorMittal, Engie or LVMH stood out especially during the period.

Nothing stops the growth of large French companies: despite the war in Ukraine and record inflation, CAC 40 has already accumulated nearly 73 billion profits in the first half according to a count made this Thursday by AFP, thanks in particular to the luxury and rebound. in raw materials.

At the moment, 38 companies in the CAC 40, the index that groups the largest French stock market capitalizations from different sectors, have published their results, with the railway manufacturer Alstom and the spirits specialist Pernod Ricard having a staggered exercise. They made a 24% profit compared to the first half of 2021, when these same companies had generated 58.8 billion profit, while Eurofins Scientific was not yet in the CAC 40.

Thus, the large French groups have largely recovered from the Covid-19 pandemic and have continued to grow despite the outbreak of the war in Ukraine at the end of February, which further accentuated the inflation linked to the economic recovery after the lockdowns. The good health of these groups makes Economy Minister Bruno Le Maire proud, who was against a tax on exceptional profits, which was finally rejected after a debate in Parliament.

“It is quite ambivalent because all the ingredients of a crisis were there (…) however, the performance is good,” Bénédicte Hautefort, founder of the fintech Scalens, which specializes in digitizing relations between listed companies and investors, told AFP. .

Raw material and luxury at the party

Inflation has not affected all businesses in the same way. In terms of raw materials and energy, for example, the rise in prices has boosted companies in the sector.

Oil and gas giant TotalEnergies more than doubled its profit in the second quarter and achieved the best CAC 40 net result of the semester, with more than 10.4 billion euros. It is followed by the world number two of the ArcelorMittal steel company, which took advantage of the rise in steel prices and reached almost 8,000 million euros. Meanwhile, Engie, the main gas supplier in France, more than doubled its profits, to 5 billion euros.

Another heavyweight in the CAC 40, luxury also stood out despite slowing sales in China, one of its main markets, as brands were able to raise prices without losing customers.

“They depend on a wealthy clientele who are not bothered by price increases,” Mimoza Bogeska, CEO of asset management firm Monocle Asset Management, told AFP. “They have also benefited from the strengthening of the dollar against the euro because their production costs are in euros and they sell a lot in dollars,” she adds.

LVMH, Kering and L’Oréal thus saw their combined profits increase by more than 36% compared to the first half of 2021, with comfortable margins. The luxury group Hermès, for its part, announced at the end of July a profit of 1,640 million euros in the first half, 39.7% more in a year thanks to the increase in sales in all regions.

“The hardest part is ahead”

For Ms. Hautefort, the good general performance of the CAC 40 is also explained by the cost reduction plans adopted to face the Covid-19 pandemic, which continue to bear fruit in 2022.

However, some groups suffered the shock wave of the war in Ukraine, such as Renault and Société Générale, which withdrew from Russia after the outbreak of the conflict. Renault sold its stake in the manufacturer Avtovaz, which makes the Lada in particular, and Société Générale its stake in the Rosbank bank, causing expenses of several billion euros.

“The hardest part is ahead,” says Ms Hautefort, who believes the economic backdrop should weigh on businesses in the second half.

With inflation and key central bank rates rising, raising the cost of credit and thus making new financing difficult, some economic players are even expecting a downturn in the global economy.

Proof of investor distrust, the CAC 40 stock market index has lost around 10% since the beginning of the year, despite a very positive month of July with the publication of results. “For some time, all valuations have been going up, but the markets are trapped by fundamentals. However, valuations remain high,” says Ms Bogeska.

(with AFP)

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