Dividends, share buybacks … Four figures on the record profits of the Cac 40

Here are four figures to remember from this report, which is based on the documents of the general meetings of the companies concerned. In addition, “profits are assessed on the basis of net income group share and turnover”, he specifies.

This is, in billions of euros, the amount that CAC 40 companies redistributed to their shareholders during the year 2022, according to the Observatory of Multinationals. This is an increase of ten billion compared to the figure for the previous year.

On the podium of the most “generous” companies with their shareholders are TotalEnergies, with 7.2 billion euros in dividends, Axa with 2.3 billion euros and LVMH (minority shareholder of Challenges) with 1.6 billion euros.

Read alsoTotalEnergies is trying to make amends for its record profits

The principle of share buybacks is simple: the companies concerned buy back their own shares from their shareholders in order to reduce the volume of outstanding shares and thus increase the value of those remaining to improve the overall valuation of the company.

According to the Observatory, these redemptions have “maintained at a record level” at 24.6 billion euros, against 26.2 billion in 2021. “Overall, the CAC 40 will therefore have redistributed two-thirds of its 2022 profits to shareholders in the form of dividends or share buybacks (against 53% of 2021 and 2019 profits, and 137% of 2020 profits)”, notes the NGO.

The podium of companies that carry out share buybacks is close to that of dividends. TotalEnergies is in the lead with 10 billion euros in share buybacks, the LVMH group follows with 6 billion in share buybacks and finally BNP Paribas bought back 4.8 billion euros in shares.

Read alsoShare buyback: a financial transaction that is part of an economic doctrine

This is the number of CAC 40 companies that have increased their payment of dividends on profits in 2022. the previous year, an increase of 22% well above inflation”, analyzes the media.

Moreover, according to the accounts of the Observatory, seven companies in the Parisian stock market index “distributed dividends and share buybacks greater than their profits.” This operation is possible provided that there are reserves within the group. For next year, 38 groups plan to pay dividends on their 2022 profits.

This is the number of fewer jobs in the CAC 40 in France compared to 2019. “While the CAC40 sees its workforce increase globally, largely due to mergers and acquisitions, it continues to erase jobs in France – including for companies like TotalEnergies, Axa or ArcelorMittal who are buying back their shares with a vengeance”, denounces the media.

Read alsoEmmanuel Macron: “Reindustrializing France is the mother of battles

For the authors, these “superprofits” are “not necessarily good news either for the economy or for French society in general”. While these annual profits have increased by 74% and these payments to shareholders by 61% over the same period”, the clearest job losses are visible at Orange (-12,000), Renault (-10,000) and Sanofi (-6,000 ).