Groupe SEB: 2024 Nine-month Sales and Financial Data
SOLID GROWTH IN Q3 ON A DEMANDING COMPARISON BASE --
FULL-YEAR OUTLOOK CONFIRMED
-- Nine-month sales: EUR5,725m, +5.6% LFL1 and +3.5% reported
-- Third-quarter sales: EUR1,985m, +4.0% LFL and +3.4% reported
-- Nine-month Operating Result from Activity: EUR444m, +14%
-- Nine-month operating margin: 7.8% vs 7.0% in 2023
-- Outlook for 2024 confirmed:
-- Organic sales growth of around 5%
-- Operating margin close to 10%
ECULLY, France--(BUSINESS WIRE)--October 24, 2024--
Regulatory News:
Statement by Stanislas de Gramont, Chief Executive Officer of Groupe SEB (Paris:SK)
"Sales momentum was strong in the first nine months of the year, and we continue to generate robust organic growth in the third quarter.
Small Domestic Equipment markets have remained buoyant in recent months. In this context, the Group's sales growth accelerated and was bolstered by the rollout of innovations, in particular in Western Europe and North America.
Sales in Professional decreased compared to an exceptional third quarter last year, reflecting the phasing of large deals rollout. The core business excluding large deals, however, has seen a noteworthy increase over the quarter.
Our Operating Result from Activity rose by 14% over the nine-month period. We remain on track to achieve an organic sales growth of around 5% and an operating margin close to 10% for the full year."
GENERAL COMMENTS ON GROUP SALES
Groupe SEB reported revenue of EUR5,725m, up 5.6% LFL (+3.5% on a reported basis), for the first nine months of the year. This difference is due to a currency effect of -3.0% and a positive scope effect of 0.9% (related to the acquisitions of La San Marco, Pacojet, Forge Adour and Sofilac).
The Group's sales showed a good level of organic growth of +4.0%(+3.4% on a reported basis) in the third quarter. They benefited from the acceleration in Consumer growth, which was dampened by the high comparison base in Professional.
Despite the still uncertain geopolitical and macroeconomic environment, the Small Domestic Equipment market continued to trend positively overall, driven by product innovation. Certain product categories, such as versatile vacuum cleaners, oil-less fryers and full auto coffee machines, were particularly dynamic and have significantly contributed to the market's good performance.
Sales in the Consumer business stood at EUR4,999m, up 6.6% LFL (+3.4% on a reported basis), for the first nine months of the year. This positive trend accelerated in the third quarter with organic sales growth of 8.1% (after +5.9% in the first half of the year). Europe and North America, which account for almost two-thirds of the Group's Consumer sales, were behind this momentum, with revenue up sharply by around 13% LFL. This growth was fueled by the rollout of innovations in the categories that drive the market. In China, Supor continued to gain market shares in its key categories and all distribution channels, despite a still muted consumer environment.
Sales in the Professional business rose by 4.1% on a reported basis (-1.6% LFL) to EUR726m for the first nine months of the year. Sales in the third quarter were lower than last year (-22.2% LFL), reflecting an exceptional comparison base (43% organic sales growth in the third quarter of 2023). Growth in core business (excluding large deals) remained positive, above 5% over the quarter.
In addition, the Sofilac Group businesses that were acquired in April were consolidated in the Group's financial statements for the first time during the past quarter.
BREAKDOWN OF SALES BY REGION
9-month 9-month Q3 2024 vs
Sales in EURm 2023 2024 Change 2023/2024 2023, LFL
--------------- -------- -------- -------------------- -------------
As
reported LFL
--------------- -------- -------- ---------- -------- -------------
EMEA Western 2,282 2,447 7.2% 10.3% 13.6%
Europe Other 1,562 1,630 4.4% 3.5% 12.6%
EMEA 720 816 13.3% 25.2% 15.8%
--------------- -------- -------- ---------- -------- -------------
AMERICAS North 778 840 8.1% 11.6% 9.8%
America South 535 577 7.8% 8.7% 13.1%
America 243 263 8.5% 18.1% +2.4%
--------------- -------- -------- ---------- -------- -------------
ASIA China 1,775 1,712 -3.5% -0.3% -0.8%
Other 1,430 1,381 -3.4% -0.6% -1.9%
countries 345 332 -4.0% 1.1% 3.5%
--------------- -------- -------- ---------- -------- -------------
TOTAL Consumer 4,835 4,999 3.4% 6.6% 8.1%
--------------- -------- -------- ---------- -------- -------------
Professional 697 726 4.1% -1.6% -22.2%
--------------- -------- -------- ---------- -------- -------------
GROUPE SEB 5,532 5,725 3.5% 5.6% 4.0%
--------------- -------- -------- ---------- -------- -------------
Rounded figures in EURm % calculated
on
non-rounded
figures
COMMENTS ON CONSUMER SALES BY REGION
Sales in EURm 9-month 9-month Change 2023/2024 Q3 2024 vs
2023 2024 2023, LFL
----------------- -------- -------- ------------------- ----------------
As LFL
reported
----------------- -------- -------- ---------- ------- ----------------
EMEA 2,282 2,447 7.2% 10.3% 13.6%
Western Europe 1,562 1,630 4.4% 3.5% 12.6%
Other EMEA 720 816 13.3% 25.2% 15.8%
----------------- -------- -------- ---------- ------- ----------------
WESTERN EUROPE
Sales in Western Europe were up 3.5% LFL (+4.4% on a reported basis) for the first nine months of the year.
This reflects a sharp acceleration in the third quarter, with organic sales growth of 12.6%.
As expected, the strong start of the loyalty programs in September contributed to this momentum. Excluding the impact of these programs, the core business achieved strong organic growth of 9% for the quarter, versus +1.5% in the first half of the year. In favorable markets, the Group's sales were driven by the rollout of product innovations, mainly oil-less fryers, versatile vacuum cleaners, full auto coffee machines and cookware.
All major countries in the region have experienced growth. In France, the core business rose by 7% in the third quarter due to the ramp-up of our innovations in multiple categories. The growth recovery continued in Germany, bolstered by commercial synergies following the reorganization of SEB and WMF teams, effective since the beginning of 2024. New product listings at our retailers, as well as strong momentum of our sales in the most dynamic categories, contributed to this recovery.
The performance was also remarkable in Southern Europe. Sales in Spain, Portugal and Italy contributed to the overall acceleration, with double-digit growth in the third quarter.
The Netherlands and the Nordic countries also showed solid progress, while the United Kingdom experienced growth on a favorable comparison base.
OTHER EMEA COUNTRIES
Sales in other EMEA countries rose by a sharp 25.2% LFL for the first nine months of the year. On a reported basis, the increase over this period was 13.3%, after accounting for the effects of currency depreciation.
The trend remained very positive in the third quarter, with organic sales growth of 15.8%, and a level close to the first half in reported figures, at +11.8%. On buoyant markets, Eastern Europe continued to enjoy sustained growth, in particular in Poland, Czech Republic, Romania and Bulgaria. This robust growth in the Group's business was driven, as in Western Europe, by innovation in key categories such as floor care (canister and versatile vacuum cleaners), electrical cooking (oil-less fryers) and cookware.
Volumes in Turkey remained strong, particularly in the cookware, food preparation, floor care and linen care segments, despite a challenging and volatile environment overall.
Sales in EURm 9-month 9-month Change 2023/2024 Q3 2024 vs 2023,
2023 2024 LFL
---------------- -------- -------- ------------------- -----------------
As LFL
reported
---------------- -------- -------- ---------- ------- -----------------
AMERICAS 778 840 8.1% 11.6% 9.8%
North America 535 577 7.8% 8.7% 13.1%
South America 243 263 8.5% 18.1% +2.4%
---------------- -------- -------- ---------- ------- -----------------
NORTH AMERICA
For the first nine months, sales in North America rose by 8.7% LFL, and 7.8% on a reported basis, due to the depreciation of the US dollar and the Mexican peso against the euro.
In the third quarter, the Group experienced an acceleration of its growth to 13.1% LFL thanks to a good commercial momentum in the United States and the ongoing expansion of the Group's footprint in Mexico.
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