In the first half of 2016, the main French groups increased their profitability

The 80 largest French industrial and commercial groups listed on segment A of Euronext Paris recorded a 4.1% decline in business activity in the first half of the year. The main groups were adversely affected by unfavourable exchange rate effects together with lower organic growth. This observation should nevertheless be qualified since it is influenced by the underperformance of just one of the 80 groups, operating in the energy sector; if the impact of this group were cancelled out, turnover would fall by 2%. For the 80 groups as a whole, the favourable operating conditions nevertheless made it possible to limit the fall in operating profit to 2%. Furthermore, there were a number of items not included in operating activities, notably asset sales, that resulted in a significant increase in the profitability rate and net profit (18%). The decline in cash flow from operating activities did not have an impact on the cash position which rose by 1% thanks to stable dividend payments and a 4% decrease in investment. As regards the latter, the increase in financial investment was not sufficient to offset the decline in tangible and intangible investment. The main French groups took advantage of the ongoing favourable financing conditions to borrow and restructure their debts with a marked appetite for bonds which remain the main source of financing for the groups under review. The 6% rise in financial debt combined with the 2% fall in equity had a negative impact on the groups’ financial structure. However, the latter remains robust.