Groupe SEB: 2024 First-Half Sales and Results
Steady Growth in Sales and Results
Confidence in Our Outlook
- First-half sales: €3,740m, +6.5% LFL1and +3.6% on a reported basis
- First-half Operating Result from Activity (ORfA): €244m, +35.4%
- Operating margin up 1.5 pts to 6.5%
- Net profit: €100m, +31.6%
-
Net financial debt as of
30 June 2024 : €2,422m vs €2,346m atend-June 2023 -
Outlook for 2024:
- Organic sales growth of around 5%
- Operating margin confirmed close to 10%
Statement by
“Our first-half performance is in line with our expectations, with organic sales growth once again exceeding 5% in the second quarter, in a slightly less favorable environment, coupled with a marked increase in our operating margin.
Our Consumer business continued the trend of recent quarters, driven by
This overall momentum was the result of our long-term strategy focused on product innovation and activating all distribution channels.
The Professional business posted a record first-half performance in Coffee, characterized by sizeable deliveries from large deals, particularly in
We remain confident in our ability to achieve an operating margin close to 10% in 2024, with organic sales growth of around 5% for the year.”
GENERAL COMMENTS ON GROUP SALES
In the first half of 2024,
Following first-quarter organic sales growth of 7.3%, the Group posted further organic sales growth in the second quarter of 5.6%, representing an increase of €101m. This was the fifth consecutive quarter where organic growth exceeded 5%.
The Consumer business posted half-year sales of €3,246m, an increase of 5.9% LFL and 2.2% on a reported basis. There was virtually no difference in sales growth between the first and second quarters, which recorded LFL growth of +5.8% and +5.9% respectively. This good performance was driven by
The Group continued to gain market share over the first half of the year, thanks to product innovation, in flagship categories such as oil-less fryers, versatile vacuum cleaners, cookware, linen care and full auto coffee machines. Markets outside of
Sales in the Professional business rose 10.9% LFL (+13.8% on a reported basis) based on high comps, having been favorably impacted by the phasing of large deals, most notably in
Growth in the Professional business slowed at the end of the semester based on higher comps, due to the rollout of large deals in 2023. The effect is expected to be more pronounced in the second half of the year.
During the half-year, the Group continued its expansion into the professional and semi-professional culinary markets with the acquisition of the
* the more recent acquisitions of Pacojet and Forge Adour will be fully consolidated in H2 2023.
BREAKDOWN OF SALES BY REGION
Sales in €m |
H1 2023 |
H1 2024 |
Change 2024/2023 |
|||
As
|
LFL |
|||||
EMEA
Other EMEA |
1,489 1,029 460 |
1,555 1,030 525 |
+4.4% +0.1% +14.2% |
+8.6% -1.3% +30.5% |
||
|
458 315 143 |
517 336 180 |
+12.8% +6.9% +25.9% |
+12.9% +5.6% +29.1% |
||
Other countries |
1,231 998 232 |
1,174 957 217 |
-4.6% -4.1% -6.4% |
+0.0% +0.0% -0.1% |
||
TOTAL Consumer |
3,177 |
3,246 |
+2.2% |
+5.9% |
||
Professional |
435 |
495 |
+13.8% |
+10.9% |
||
|
3,612 |
3,740 |
+3.6% |
+6.5% |
||
Rounded figures in €m |
% calculated on non-rounded figures |
COMMENTS ON CONSUMER SALES BY REGION
Sales in €m |
H1 2023 |
H1 2024 |
Change 2024/2023 |
|
As
|
LFL |
|||
EMEA
Other EMEA |
1,489 1,029 460 |
1,555 1,030 525 |
+4.4% +0.1% +14.2% |
+8.6% -1.3% +30.5% |
In
In
After a first quarter that was almost unchanged,
In other Western European countries, the positive trend continued in the first half of the year. Sales were up sharply in
OTHER EMEA COUNTRIES
Sales in other EMEA countries were up 31% LFL during the first half of the year. Note that this growth was adversely affected by major devaluations of the Turkish lira, Egyptian pound and Russian ruble, with growth limited to 14% on a reported basis.
In Central and
In
Lastly, the Group announced that it had entered a strategic partnership with the
Sales in €m |
H1 2023 |
H1 2024 |
Change 2024/2023 |
|
As
|
LFL |
|||
|
458 315 143 |
517 336 180 |
+12.8% +6.9% +25.9% |
+12.9% +5.6% +29.1% |
In
In
In
In
Sales in
In
Sales in €m |
H1 2023 |
H1 2024 |
Change 2024/2023 |
|
As
|
LFL |
|||
Other countries |
1,231 998 232 |
1,174 957 217 |
-4.6% -4.1% -6.4% |
+0.0% +0.0% -0.1% |
In a declining market, this performance reflects the Group’s continued gains in market shares, driven by ongoing innovation in its core products. Rice cookers, kettles and electric pressure cookers, for example, all reported growth over the half-year. This outperformance applied to both offline networks and e-commerce (including social media platforms).
At the same time, the Group continued to expand its offering into new product categories (including outdoor, babycare, small size household…).
While visibility was reduced overall, in an environment of muted consumer spending and high promotional intensity, the second half of the year is expected to be similar to the first, yielding to stable or slightly growing organic sales for the full year.
OTHER ASIAN COUNTRIES
In other Asian countries, Group sales were fairly flat LFL in the first half of the year and down 6.4% on a reported basis, primarily due to the depreciation of the yen over the period. Performances in the region varied from a country to another.
In
The Group posted a positive performance in
Fans sales in
Lastly, in
COMMENTS ON PROFESSIONAL BUSINESS
Sales in €m |
H1 2023 |
H1 2024 |
Change 2024/2023 |
|
As
|
LFL |
|||
Professional |
435 |
495 |
+13.8% |
+10.9% |
PROFESSIONAL
Sales in the Professional business totaled €495m for the half-year, a rise of 10.9% LFL (+13.8% on a reported basis) on a high comparison basis (+25% LFL in the first half of 2023).
The Coffee business posted a record half-year, driven by
Given the delivery schedule for large deals in 2023 and 2024 (notably in
Lastly, an important milestone was reached during the half-year with the acquisition of Sofilac2, which expanded our offering and expertise in the professional culinary segment. In 2023, the
OPERATING RESULT FROM ACTIVITY (ORfA)
In the first half of 2024, ORfA stood at€244m, a rise of more than 35% from 2023. The figure includes a negative currency effect of €73m and a positive scope effect of €2m. The operating margin was 6.5% of sales, versus 5% the previous year.
The change in ORfA compared with the first half of 2023 can notably be explained by the following factors:
- a positive volume effect in both Consumer and Professional;
- a positive mix effect bolstered by innovation in line with our long-term strategy
- a reduction in cost of sales (FY effect of 2023 lower costs, additional gains in 2024, better industrial absorption), allowing to reinvest to support sales momentum;
- increase in growth drivers in line with sales to support product development and marketing;
- slightly higher commercial expenses, reflecting ongoing dynamic sales activation; and
- controlled administrative expenses.
It is reminded that the ORfA in the first half of the year is not representative of the full year, given the seasonal nature of the Group’s business.
OPERATING PROFIT AND NET PROFIT
At
Net financial expense as of
The tax charge is -€39m,based on an estimated effective tax rate of 24%, and after minority interests of -€24m. Profit attributable to owners of the parent therefore totaled €100m in the first half, compared with €76m at
FINANCIAL STRUCTURE
As of
The Group’s net financial debt was €2,422m (including €312m of IFRS 16 debt) as of
The Group’s debt ratio (net financial debt/equity) as of
OUTLOOK
We anticipate organic sales growth of around 5% for the year. In a macroeconomic and geopolitical environment characterized by low visibility, we remain confident in our growth trajectory. In comparison with 2023, this includes a more balanced growth between the Consumer and Professional businesses.
The trend in our operating margin over the first half of the year coupled with our expectations for the second half support our ambition to achieve an operating margin close to 10% for the full year 2024.
Groupe SEB’s company and consolidated financial statements as of
CONSOLIDATED INCOME STATEMENT
(€ million) |
6 months |
6 months |
12 months |
Revenue |
3,740.2 |
3,611.9 |
8,006.0 |
Operating expenses |
(3,496.4) |
(3,431.8) |
(7,280.4) |
OPERATING RESULT FROM ACTIVITY |
243.8 |
180.1 |
725.6 |
Statutory and discretionary employee profit-sharing |
(10.4) |
(11,0) |
(23.8) |
RECURRING OPERATING PROFIT |
233.4 |
169.1 |
701.8 |
Other operating income and expense |
(23.4) |
(8.7) |
(34.3) |
OPERATING PROFIT |
210.0 |
160.4 |
667.5 |
Finance costs |
(30.0) |
(16.5) |
(42.9) |
Other financial income and expense |
(16.3) |
(16.1) |
(37.6) |
PROFIT BEFORE TAX |
163.7 |
127.8 |
587.0 |
Income tax expense |
(39.3) |
(30.7) |
(147.6) |
PROFIT FOR THE PERIOD |
124.4 |
97.1 |
439.4 |
Non-controlling interests |
(24.3) |
(21.1) |
(53.2) |
PROFIT ATTRIBUTABLE TO OWNERS OF THE PARENT |
100.1 |
76.0 |
386.2 |
PROFIT ATTRIBUTABLE TO OWNERS OF THE PARENT PER SHARE (in units) |
|||
Basic earnings per share |
1.84 |
1.38 |
7.01 |
Diluted earnings per share |
1.83 |
1.38 |
6.97 |
CONSOLIDATED BALANCE SHEET
ASSETS (in € million) |
|
|
|
|
1,865.5 |
1,757.6 |
1,868.4 |
Other intangible assets |
1,360.6 |
1,303.0 |
1,347.5 |
Property, plant and equipment |
1,216.0 |
1,295.0 |
1,292.2 |
Other investments |
348.1 |
325.3 |
210.6 |
Other non-current financial assets |
16.5 |
26.6 |
16.6 |
Deferred tax liabilities |
199.4 |
152.0 |
151.6 |
Other non-current assets |
66.6 |
66.3 |
65.5 |
Long-term derivative instruments - assets |
16.9 |
18.1 |
17.9 |
NON-CURRENT ASSETS |
5,089.6 |
4,943.9 |
4,970.3 |
Inventories |
1,690.9 |
1,625.2 |
1,474.8 |
Customers |
923.4 |
788.8 |
1,018.0 |
Other receivables |
173.5 |
175.8 |
185.0 |
Current tax assets |
46.8 |
41.8 |
36.8 |
Short-term derivative instruments - assets |
48.2 |
51.2 |
40.8 |
Financial investments and other current financial assets |
38.6 |
58.3 |
94.7 |
Cash and cash equivalents |
772.6 |
828.2 |
1,432.1 |
CURRENT ASSETS |
3,694.0 |
3,569.3 |
4,282.2 |
TOTAL ASSETS |
8,783.6 |
8,513.2 |
9,252.5 |
EQUITY & LIABILITIES (in € million) |
|
|
|
Share capital |
55.3 |
55.3 |
55.3 |
Reserves and retained earnings |
3,137.1 |
2,895,0 |
3,170.8 |
|
(100.0) |
(27.7) |
(27.7) |
Equity attributable to owners of the parent |
3,092.4 |
2,922.6 |
3,198.4 |
Non-controlling interests |
235.8 |
230.9 |
262.3 |
CONSOLIDATED SHAREHOLDERS’ EQUITY |
3,328.2 |
3,153.5 |
3,460.7 |
Deferred tax liabilities |
210.2 |
181.9 |
198.6 |
Employee benefits and other long-term provisions |
195.9 |
213.3 |
210.4 |
Long-term borrowings |
1,636.0 |
1,405.8 |
1,890.4 |
Other non-current liabilities |
78.9 |
57.2 |
58.9 |
Long-term derivative instruments - liabilities |
16.3 |
21.4 |
13.9 |
NON-CURRENT LIABILITIES |
2,137.3 |
1,879.6 |
2,372.2 |
Employee benefits and other short-term provisions |
124.1 |
105,0 |
125.3 |
Suppliers |
1,130.0 |
966.8 |
1,160.6 |
Other current liabilities |
384.3 |
447.9 |
609.8 |
Current tax liabilities |
53.4 |
45.4 |
58.8 |
Short-term derivative instruments - liabilities |
32.3 |
83.4 |
65.0 |
Short-term borrowings |
1,594.1 |
1,831.6 |
1,400.1 |
CURRENT LIABILITIES |
3,318.2 |
3,480.1 |
3,419.6 |
TOTAL CONSOLIDATED EQUITY AND LIABILITIES |
8,783.6 |
8,513.2 |
9,252.5 |
CASH FLOW STATEMENT
(€ million) |
|
|
||
PROFIT ATTRIBUTABLE TO OWNERS OF THE PARENT |
100.1 |
76.0 |
||
Depreciation, amortization and impairment losses |
142.3 |
139.3 |
||
Change in provisions |
(6.8) |
(31.2) |
||
Unrealized gains and losses on financial instruments |
(15.0) |
17.4 |
||
Income and expenses related to stock options and bonus shares |
11.7 |
12.6 |
||
Gains and losses on disposals of assets |
0.6 |
1.5 |
||
Other |
|
|||
Non-controlling interests |
24.3 |
21.1 |
||
Current and deferred taxes |
39.3 |
30.7 |
||
Finance costs |
30.0 |
16.5 |
||
CASH FLOW (1) (2) |
326.5 |
283.9 |
||
Change in inventories and work in progress |
(223.1) |
32.6 |
||
Change in trade receivables |
(88.0) |
(50.3) |
||
Change in trade payables |
(24.7) |
(27.2) |
||
Change in other receivables and payables |
(14.8) |
39.4 |
||
Income tax paid |
(96.2) |
(62.3) |
||
Net interest paid |
(30.0) |
(16.5) |
||
NET CASH FROM OPERATING ACTIVITIES |
(150.3) |
199.6 |
||
Proceeds from disposals of assets |
2.9 |
1.2 |
||
Purchases of property, plant and equipment (2) |
(60.7) |
(63.7) |
||
Purchases of software and other intangible assets (2) |
(20.5) |
(18.0) |
||
Purchases of financial assets |
40.7 |
33.6 |
||
Acquisitions of subsidiaries, net of cash acquired |
(126.9) |
(174.2) |
||
NET CASH USED BY INVESTING ACTIVITIES |
(164.5) |
(221.1) |
||
Increase in borrowings (2) |
1 023.4 |
782.8 |
||
Decrease in borrowings |
(1 083.0) |
(881.3) |
||
Issue of share capital |
|
|||
Transactions between owners (3) |
0.1 |
(30.7) |
||
Change in treasury stock |
(89.0) |
(18.9) |
||
Dividends paid, including to non-controlling interests |
(194.2) |
(195.3) |
||
NET CASH USED BY FINANCING ACTIVITIES |
(342.7) |
(343.4) |
||
Effect of changes in foreign exchange rates |
(2.0) |
(43.9) |
||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
(659.5) |
(408.8) |
||
Cash and cash equivalents at beginning of period |
1 432.1 |
1 237.0 |
||
Cash and cash equivalents at end of period |
772.6 |
828.2 |
||
(1) Before net finance costs and income taxes paid. (2) Excluding IFRS 16 impact
(3) Including Supor share buyback of |
APPENDIX
SALES BY REGION – 1ST QUARTER
Sales (€m) |
Q1 2023 |
Q1 2024 |
Change 2024/2023 |
|
As
|
LFL |
|||
EMEA
Other EMEA |
760 524 236 |
786 515 271 |
+3.4% -1.8% +14.9% |
+8.0% -3.1% +32.9% |
|
212 143 69 |
246 155 90 |
+15.8% +8.8% +30.3% |
+14.0% +7.7% +27.1% |
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% |
|
1,822 |
1,893 |
+3.9% |
+7.3% |
Rounded figures in €m |
% calculated on non-rounded figures |
SALES BY REGION – 2ND QUARTER
Sales (€m) |
Q2 2023 |
Q2 2024 |
Change 2024/2023 |
|
As
|
LFL |
|||
EMEA
Other EMEA |
729 505 224 |
769 515 254 |
+5.5% +2.0% +13.4% |
+9.1% +0.7% +28.1% |
|
246 172 74 |
271 181 90 |
+10.2% +5.3% +21.7% |
+12.0% +3.8% +31.0% |
Other countries |
590 471 119 |
571 459 112 |
-3.3% -2.6% -6.1% |
-0.6% -0.6% -0.8% |
TOTAL Consumer |
1,565 |
1,611 |
+2.9% |
+5.9% |
Professional |
226 |
237 |
+5.0% |
+3.9% |
|
1,790 |
1,847 |
+3.2% |
+5.6% |
Rounded figures in €m |
% calculated on non-rounded figures |
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.
Adjusted EBITDA
Adjusted EBITDA is equal to Operating Result From Activity minus discretionary and non-discretionary profit-sharing, to which are added operating depreciation and amortization.
Free cash flow
Free cash flow corresponds to adjusted EBITDA, after accounting for the change in the operating capital requirement, recurring investments (CAPEX), taxes and financial expense, as well as other non-operational items.
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 press release 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 climate, demand in the Group’s large markets and the impact of new product launches by competitors.
As a result of these uncertainties,
The factors which could considerably influence Groupe SEB’s economic and financial result are presented in the Annual Financial Report and Universal Registration Document filed with the Autorité des Marchés Financiers, the French financial markets authority. This document may contain individually rounded data. The arithmetical calculations based on rounded data may present some differences with the aggregates or subtotals reported.
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or the conference call (oral questions)
Next key dates - 2024 |
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|
9-month 2024 sales and financial data |
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ESG Investor Day |
Find us on www.groupeseb.com
World reference in small domestic equipment and professional coffee machines,
1
On a like-for-like basis (= organic)
2
Sofilac will be consolidated starting from the third quarter, incorporating the activity from
View source version on businesswire.com: https://www.businesswire.com/news/home/20240724280387/en/
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aphaël Hoffstetter
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Tel. +33 (0) 4 72 18 16 04
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roupe SEB
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athy Pianon
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el. + 33 (0) 6 33 13 02 00
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