Groupe SEB: First-quarter 2024 Sales and Financial Data
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%
Statement by
“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,
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
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
BREAKDOWN OF REVENUE BY REGION
Revenue in €m |
First-quarter 2023 |
First-quarter 2024 |
Change 2024/2023 |
|
As
|
LFL |
|||
EMEA
Other countries |
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 |
COMMENTS ON CONSUMER SALES BY REGION
EMEA
Revenue in €m |
First-quarter 2023 |
First-quarter 2024 |
Change 2024/2023 |
|
As
|
LFL |
|||
EMEA
Other countries |
760 524 236 |
786 515 271 |
+3.4% -1.8% +14.9% |
+8.0% -3.1% +32.9% |
In the first quarter, Group sales in
Against this background and excluding the impact of loyalty programs in 2023, sales in
Over the quarter, most other Western European countries saw growth, particularly
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
Revenue in €m |
First-quarter 2023 |
First-quarter 2024 |
Change 2024/2023 |
|
As
|
LFL |
|||
|
212 143 69 |
246 155 90 |
+15.8% +8.8% +30.3% |
+14.0% +7.7% +27.1% |
In early 2024,
Despite a persistently volatile US market, the Group’s sales growth was boosted by cookware, a segment where
As observed in previous quarters,
First-quarter turnover for
Consistent with prior months, this excellent business was primarily underpinned by fan sales, both in
In
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.
Revenue in €m |
First-quarter 2023 |
First-quarter 2024 |
Change 2024/2023 |
|
As
|
LFL |
|||
Other countries |
640 527 113 |
603 498 106 |
-5.8% -5.6% -6.8% |
+0.5% +0.5% +0.7% |
Resilience in
Against a background of weak consumer confidence,
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
Amidst a revitalized market,
In
COMMENTS ON PROFESSIONAL BUSINESS ACTIVITY
Revenue in €m |
First-quarter 2023 |
First-quarter 2024 |
Change 2024/2023 |
|
As
|
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
The Group stepped up its international expansion, as illustrated in
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
At
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,
-
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,
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.
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Next key dates – 2024 |
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Annual General Meeting |
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H1 2024 sales and results |
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9-month 2024 sales and financial data |
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World reference in small domestic equipment and professional coffee machines,
1 LFL: on a like-for-like basis (= organic)
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