CONTINUED GOOD DYNAMIC IN THE FIRST QUARTER,
AS EXPECTED
- Sales: €1,893m, +7.3% LFL1 and +3.9% as
reported
- Solid performances: Consumer +5.8% and Professional
+18.5% LFL
- Operating Result from Activity (ORFA): €111m vs. €65m in
Q1 2023, +70%
- Operating margin progressing significantly to 5.8%, +2.2
points
- Outlook for 2024 confirmed, with an operating margin
close to 10%
Regulatory News:
Groupe SEB (Paris:SK):
Statement by Stanislas de Gramont, Chief Executive Officer of
Groupe SEB
“2024 started as we expected, with robust organic sales growth,
once more surpassing 5% in this first quarter.
The Small Domestic Equipment market again showed resilience
since the beginning of the year, with our Consumer business
continuing to outperform the market. This trend is supported by the
roll-out of product innovations in multiple categories, driving our
momentum in a growing number of countries.
Over the same period, our Professional business turned in
another excellent performance, notably propelled by the delivery of
several large contracts.
Factoring in these solid first-quarter sales and a significantly
improved operating margin, we reiterate our outlook for 2024,
particularly to achieve an operating margin close to 10%.”
GENERAL COMMENTS ON GROUP SALES
In the first quarter of 2024, Groupe SEB generated sales of
€1,893m, up 7.3% LFL and 3.9% on a reported basis. The first three
months saw continued currency headwinds with a negative effect of
-€75m, or -4% of sales. However, in the months ahead, this trend is
expected to ease. The scope effect was a positive 0.7%, or €13m.
The latter includes the integration of La San Marco, Pacojet and
Forge Adour.
In early 2024, in a gradually recovering consumer environment,
the Small Domestic Equipment market again demonstrated overall
resilience. In this context, Consumer sales outperformed the
market, posting solid organic growth of 5.8% (+1.4% on a reported
basis), despite an unfavorable comparison base for loyalty programs
in Europe at the start of 2023. Growth was spread out more evenly
across regions and fueled by effective commercial execution, new
products roll-out, and the vigorous performance of several ranges
including oil-less fryers, versatile vacuum cleaners, full-auto
coffee machines, steam generators, garment steamers, and fans.
Professional sales for the quarter totaled €258m,
representing an increase of 18.5% LFL (+23.3% on a reported basis),
bolstered by the delivery of several large contracts, particularly
in China. This first-quarter performance is even more remarkable
when viewed on the basis of a demanding comparison base (Q1 2023,
+29% LFL).
BREAKDOWN OF REVENUE BY REGION
Revenue in €m
First-quarter
2023
First-quarter
2024
Change 2024/2023
As reported
LFL
EMEA
Western Europe
Other countries
760
524
236
786
515
271
+3.4%
-1.8%
+14.9%
+8.0%
-3.1%
+32.9%
AMERICAS
North America
South America
212
143
69
246
155
90
+15.8%
+8.8%
+30.3%
+14.0%
+7.7%
+27.1%
ASIA
China
Other countries
640
527
113
603
498
106
-5.8%
-5.6%
-6.8%
+0.5%
+0.5%
+0.7%
TOTAL Consumer
1,613
1,635
+1.4%
+5.8%
Professional
209
258
+23.3%
+18.5%
GROUPE SEB
1,822
1,893
+3.9%
+7.3%
Rounded figures in €m
% calculated on non-rounded figures
COMMENTS ON CONSUMER SALES BY REGION
EMEA
Revenue in €m
First-quarter
2023
First-quarter
2024
Change 2024/2023
As reported
LFL
EMEA
Western Europe
Other countries
760
524
236
786
515
271
+3.4%
-1.8%
+14.9%
+8.0%
-3.1%
+32.9%
WESTERN EUROPE
In the first quarter, Group sales in Western Europe were down
3.1% LFL (-1.8% on a reported basis). This decline was mainly owing
to an unfavorable comparison base which results from major loyalty
programs in Q1 2023. Adjusted for this impact, core business
trended slightly positively (+0.2% LFL), in the context of a
gradually recovering Small Domestic Equipment market, propelled by
online sales.
Against this background and excluding the impact of loyalty
programs in 2023, sales in France were up 8% LFL, illustrating an
outperformance in a buoyant market. This strong momentum was
notably driven by beverages (full-autos, coffee partnerships),
electrical cooking (oil-less fryers) and home care
(versatiles).
Over the quarter, most other Western European countries saw
growth, particularly Spain, Belgium, the Netherlands and the
Nordics which delivered solid sales performances. Sales declined
for the United Kingdom, in a pressured market. Business stabilized
in Germany, with successful execution of full auto coffee machines
and oil-less fryers.
OTHER EMEA COUNTRIES
Other EMEA countries reported vigorous sales growth (+32.9%
LFL), in fast-growing markets throughout most of the region. On a
reported basis, sales growth was curbed to 14.9%, mainly due to
depreciation of the Turkish lira, the Russian rouble and the
Egyptian pound against the euro.
Sales continued trending favorably in Eastern Europe, still
reporting double-digit organic growth. In particular, this trend
was noticeable for online sales. The Group also continued to gain
market shares in recently renewed product ranges including
versatile vacuum cleaners, full-auto coffee machines, oil-less
fryers and steam generators.
Turkey posted continued robust growth, largely fueled by
versatiles and cookware sales, in a buoyant market albeit with a
complex economic environment.
AMERICAS
Revenue in €m
First-quarter
2023
First-quarter
2024
Change 2024/2023
As reported
LFL
AMERICAS
North America
South America
212
143
69
246
155
90
+15.8%
+8.8%
+30.3%
+14.0%
+7.7%
+27.1%
NORTH AMERICA
In early 2024, North America continued to trend upward as was
the case in H2 2023, notching up organic sales growth of 7.7%
(+8.8% on a reported basis).
Despite a persistently volatile US market, the Group’s sales
growth was boosted by cookware, a segment where Groupe SEB has
consolidated its long-established leader position. Conversely,
linen care declined further, albeit with the Group still preserving
its market share.
As observed in previous quarters, Mexico enjoyed exceptionally
brisk sales momentum with double-digit organic growth. Given the
buoyant Mexican market, almost all product categories have
contributed to sales, most notably fans which saw brisk growth
coupled with solid performances in the linen care segment.
SOUTH AMERICA
First-quarter turnover for South America was up 27.1% LFL
(+30.3% on a reported basis).
Consistent with prior months, this excellent business was
primarily underpinned by fan sales, both in Brazil and Colombia,
following the El Ninõ climate phenomenon.
In Brazil, the strong performance of coffee partnerships is
noticeable, not to mention successes in cookware and steam
irons.
Despite disruptions to Colombia’s market because of the economic
situation, the Group’s sales momentum helped cement its leadership
in Small Domestic Equipment. Beyond the success of fans, we can
note the excellent performance in locally produced blenders and
oil-less fryers.
ASIA
Revenue in €m
First-quarter
2023
First-quarter
2024
Change 2024/2023
As reported
LFL
ASIA
China
Other countries
640
527
113
603
498
106
-5.8%
-5.6%
-6.8%
+0.5%
+0.5%
+0.7%
CHINA
Resilience in China was confirmed for the Group with sales up
0.5% LFL, in a muted market without any marked improvements from
the second half of 2023. Factoring in last year’s depreciation of
the yuan against the euro, sales declined by 5,6% on a reported
basis.
Against a background of weak consumer confidence, Supor
continued to gain market shares, strengthened by its less
discretionary product mix, its innovation capacity, the swift
launch of new products and best-in-class commercial execution,
particularly via e-commerce platforms.
Key contributors to this early-year momentum include products
such as rice cookers, pressure cookers, thermal bottles and
woks.
OTHER ASIAN COUNTRIES
Other Asian countries reported a mixed quarterly performance
albeit with sales up slightly by 0.7% LFL across the region (-6.8%
on a reported basis).
In Japan and South Korea, the region’s two largest markets, the
situation is stabilizing on low points. In South Korea, growth
resumed thanks to cookware, with a good performance in versatile
vacuum cleaners. The Group’s Japanese store network delivered a
satisfactory performance while notable gains were made in rice
cookers and kitchen utensils (knives). By contrast, sales were down
for the rest of the retail, on the back of heightened
competition.
Amidst a revitalized market, Australia achieved a strong
performance, posting double-digit organic growth notably driven by
sales of oil-less fryers and single-serve coffee machines via our
brand partnerships.
In Vietnam, sales growth was also considerable, helped by a
favorable comparison base. In a market showing clear signs of an
upturn, the Group performed well in fans, oil-less fryers and linen
care.
COMMENTS ON PROFESSIONAL BUSINESS ACTIVITY
Revenue in €m
First-quarter
2023
First-quarter
2024
Change 2024/2023
As reported
Like-for-like
Professional
209
258
+23.3%
+18.5%
PROFESSIONAL
In Q1 2024, the Group’s Professional business reported excellent
sales growth of 18.5% LFL (+23.3% on a reported basis despite the
demanding comparison base (Q1 2023, +29% LFL).
Business was particularly strong in China, with first-quarter
sales more than doubling. The Group continued to roll-out large
contracts while expanding its reach with a wider customer base,
including tea chains. Meanwhile, Germany and Italy made a
particularly good start of the year 2024.
The Group stepped up its international expansion, as illustrated
in Mexico by signing a contract with a major convenience store
chain, in Taiwan, through the delivery of a large-scale order, in
Malaysia and in Eastern Europe.
This enhanced performance comes in a context where the roll-out
phasing of large contracts is favorable in the first half of
2024.
As announced, in April the Group finalized the acquisition of
Sofilac, a French group specializing in the design, manufacture and
marketing of high-end professional and semi-professional cooking
equipment. As stated previously, with this acquisition, the Group
reaffirms its aim to actively develop in the professional culinary
segment, with the overarching ambition to become a reference player
in professional equipment.
OPERATING RESULT FROMACTIVITY
The Group reported Operating Result from Activity (ORFA) of
€111m in first-quarter 2024 (vs. €65m in Q1 2023, + 70%),
including a negative currency effect of €43m. Operating margin for
the quarter stood at 5.8% compared to 3.6% from the previous
year.
This increased ORFA is to be correlated with Q1 turnover, with a
positive volume effect in both Consumer and Professional
businesses, a product mix effect still bolstered by innovation, and
a decrease in the cost of goods sold.
It should be noted that the first quarter is not representative
of the full-year performance due to the seasonal nature of the
business.
DEBT AT MARCH 31, 2024
At March 31, 2024, the Group's net financial debt amounted to
€1,836m (of which €342m in IFRS 16 debt), representing a
decrease of €28m from March 31, 2023, when it stood at €1,864m
(with IFRS 16 debt of €358m).
Q1 2024 saw the Group strengthen its financial structure and
extend the average maturity of its debt by securing:
- a €495m Club Deal with its relationship banks; and
- a €150m, 12-year private placement, with leading institutional
investors.
OUTLOOK
On these solid results, Groupe SEB confirms its ambitions for
2024, as announced during its 2023 Full-Year Results release:
- For the Consumer business, a return to more widespread sales
growth in mature countries, with a gradual year-round recovery in
China and continued good dynamic in emerging markets amidst a still
penalizing currency environment;
- Continued growth in its Professional business on a high
comparison basis; and
- An operating margin expected to be close to 10%.
GLOSSARY
On a like-for-like basis (LFL) – Organic
The amounts and growth rates at constant exchange rates and
consolidation scope in a given year compared with the previous year
are calculated:
- using the average exchange rates of the previous year for the
period in consideration (year, half-year, quarter)
- on the basis of the scope of consolidation of the previous
year.
This calculation is made primarily for sales and Operating
Result from Activity.
Operating Result From Activity (ORFA)
Operating Result from Activity (ORFA) is Groupe SEB’s main
performance indicator. It corresponds to sales minus operating
expenses, i.e., the cost of sales, innovation expenditure (R&D,
strategic marketing and design), advertising, operational marketing
as well as sales and marketing expenses. ORFA does not include
discretionary and non-discretionary profit-sharing or other
non-recurring operating income and expense.
Net financial debt
This term refers to all recurring and non-recurring financial
debt minus cash and cash equivalents, as well as derivative
instruments linked to Group financing. It also includes debt from
application of the IFRS 16 standard “Lease contracts” in addition
to short-term investments with no risk of a substantial change in
value but with maturities of over three months.
Loyalty program (LP)
These programs, run by distribution retailers, consist in
offering promotional offers on a product category to loyal
consumers who have made a series of purchases within a short period
of time. These promotional programs allow distributors to boost
footfall in their stores and our consumers to access our products
at preferential prices.
This document may contain certain forward-looking statements
regarding Groupe SEB’s activity, results and financial situation.
These forecasts are based on assumptions which seem reasonable at
this stage, but which depend on external factors including trends
in commodity prices, exchange rates, the economic environment,
demand in the Group’s large markets and the impact of new product
launches by competitors. As a result of these uncertainties, Groupe
SEB cannot be held liable for potential variance on its current
forecasts, which result from unexpected events or unforeseeable
developments. The factors which could considerably influence Groupe
SEB’s economic and financial results are presented in the Universal
Registration Document and Annual Financial Report, filed each year
with the Autorité des Marchés Financiers, the French financial
markets authority.
Conference with management on April 25 at
6:00 p.m. CET
Click here to access the webcast live (in
English only)
Replay available on our website on April 25 at
8:00 p.m. CET at www.groupeseb.com
Access (audio only): From France: +33 (0)1 7037
7166 – Password: SEB From abroad: +44 (0) 33 0551 0200 – Password:
SEB From the United States: +1 786 697 3501 – Password: SEB
Next key dates – 2024
May 23 | 2:30 p.m (Paris
time)
Annual General Meeting
July 24 | after market
closes
H1 2024 sales and results
October 24 | after market
closes
9-month 2024 sales and financial
data
Find us on www.groupeseb.com
World reference in small domestic equipment and professional
coffee machines, Groupe SEB operates with a unique portfolio of 40
top brands including Tefal, Seb, Rowenta, Moulinex, Krups,
Lagostina, All-Clad, WMF, Emsa, Supor, marketed through
multi-format retailing. Selling more than 400 million products a
year, it deploys a long-term strategy focused on innovation,
international development, competitiveness and client service.
Present in over 150 countries, Groupe SEB generated sales of €8
billion in 2023 and has more than 31,000 employees worldwide.
1 LFL: on a like-for-like basis (= organic)
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Investor/Analyst Relations Groupe SEB Financial
Communication and IR Dept
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comfin@groupeseb.com
Tel. +33 (0) 4 72 18 16 04
Media Relations Groupe SEB Corporate
Communication Dept
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presse@groupeseb.com
Tel. + 33 (0) 6 33 13 02 00 Tel. + 33 (0) 6 88 20 90
88 Tel. +33 (0) 6 76 98 87 53
Image Sept Caroline Simon Claire Doligez
Isabelle Dunoyer de Segonzac
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cdoligez@image7.fr
isegonzac@image7.fr
Tel. +33 (0) 1 53 70 74
70
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