The giants of the CAC 40 are embarking on a new era in 2023 by reducing their dependence on Europe. They now derive only 52% of their revenue from the Old Continent, compared to 72% in 2006. This strategic diversification, marked by international initiatives and acquisitions, reflects their adaptation to an increasingly competitive global market.
In 2023, the giants of the CAC 40 have significantly reduced their dependence on Europe for their revenue. While in 2006, 72% of their income came from the Old Continent, this share has fallen to 52% in 2023, marking a shift towards greater geographical diversification. This trend indicates a strategic repositioning of companies seeking to capture new growth opportunities on a global scale.
In 2023, the major groups of the CAC 40 continued their march towards geographical diversification. Over the past decade, the share of their revenue generated in Europe has steadily decreased, from 61% to only 52%. Strategic initiatives and acquisitions outside the Old Continent illustrate this trend. For example, TotalEnergies has strengthened its presence in Namibia, Suriname, and Brazil, thereby consolidating its global position far from European borders. This internationalization is driven by the search for new promising markets and the desire to reduce exposure to European economic risks.
The benefits of geographical diversification
This strategy of geographical diversification is not solely explained by economic reasons. The groups of the CAC 40 seek to reduce their dependence on Europe to better face the political and regulatory uncertainties of the continent. The growth of emerging markets in Asia, Latin America, and Africa offers new opportunities that these companies are eagerly seizing. Thus, high-tech giants like Dassault Systèmes and STMicroelectronics see their stocks soar on the stock market, bolstered by growing demand outside Europe. Diversification is no longer an option, but a necessity to maintain sustainable growth.
The benefits of global expansion
This reduction in dependence on Europe allows CAC 40 companies to take advantage of global economic dynamics. In 2023, they recorded cumulative profits of 145 billion euros despite a slight decline in their revenue. The recorded profits, supported by record dividends and share buybacks, demonstrate the effectiveness of this internationalization strategy. Foreign operations help mitigate regional economic fluctuations and exploit rapidly growing markets, such as those in Asia.
