- Annual sales: €8,006m; +0.6%, +5.3% LFL1
- Operating Result from Activity (ORFA): €726m, +17% vs.
2022
- Operating margin: 9.1% (7.8% in 2022)
- Net profit: €386m, + 22% vs. 2022
- Free cash flow of €805m and leverage ratio of
1.8x EBITDA
- Proposed dividend at the General Meeting: €2.62 per
share (+6.9% vs. 2022)
- Medium-term ambition: LFL sales CAGR of at least 5% and
operating margin toward 11%
- 2024 outlook: operating margin close to 10%
Regulatory News:
Statement by Stanislas de Gramont, Chief Executive Officer of
Groupe SEB (Paris:SK):
"Groupe SEB posted a strong performance in 2023, in a
challenging economic context. As expected, our Consumer business
found renewed momentum and the Group reaffirmed its global
leadership, on the back of an intensive and efficiently executed
product innovation strategy.
In the Professional segment, we continued to make gains and
reinforced our position as global leader on coffee machines.
Parallel to this, we expanded our reach through targeted
acquisitions, furthering our ambition to become a leading player in
the Professional Equipment market.
Thanks to a robust sales dynamic, a steadily improving gross
margin and disciplined cost control, the Group surpassed its
initial target for operating result growth. At the end of 2023, our
balance sheet and financial structure are reinforced.
The contemplated acquisition of Sofilac with its flagship brands
Charvet and Lacanche confirms the Group's ambition to develop in
the professional and semi-professional culinary markets.
We remain committed to our medium-term ambition to deliver a LFL
sales CAGR of at least 5% and an operating margin progressing
toward 11%. For 2024, we reaffirm our guidance to achieve an
operating margin close to 10%.
I want to thank all our employees for their commitment and
contribution to these outstanding achievements."
1 LFL: on a like-for-like basis (= organic)
Consolidated results
(€m)
2022
2023
Change 2022/2023
Sales
7,960
8,006
+0.6% +5.3% LFL
Operating Result from Activity
(ORFA)
620
726
+17.0%
Operating profit
547
667
+22.0%
Profit attributable to owners of
the parent
316
386
+22.1%
Adjusted EBITDA
874
985
+12.7%
Net debt at end December
1,973*
1,769*
-10.3%
Dividend per share
€2.45
€2.62**
+6.9%
* o/w €371m and €358m in IFRS16 impact for 2022 and 2023
respectively
% calculated on non-rounded
figures
** dividend proposed at the AGM of May 23,
2024
SALES
Groupe SEB generated 2023 sales of €8,006m, up 5.3% LFL (and
0.6% on a reported basis). This good organic growth was
counterbalanced by a negative currency effect of the same
magnitude, resulting from the depreciation of a number of
currencies against the Euro (in particular the Chinese yuan). The
revenue figure also includes a limited scope effect linked to the
integration of the acquired companies Zummo, La San Marco and
Pacojet.
Despite an uncertain environment, this solid momentum was driven
by:
- the continued recovery of the Consumer business (+3.2%
LFL), which saw growth in all regions, and a resilient Small
Domestic Equipment market globally;
- the excellent performance of the Professional business
(+26.5% LFL), fueled by the continued international expansion
of Professional Coffee.
OPERATING RESULT FROM ACTIVITY (ORFA)
The Group's 2023 Operating Result from Activity (ORFA) came
out at €726m, up 17.0% from end-December 2022 (€620m). The
operating margin stood at 9.1% of sales, compared to 7.8% in
2022. The changes in ORFA versus 2022 are due to the following
factors:
- a positive volume effect of €134m, with a return to
rising volumes in Consumer business and strong growth in the
Professional segment;
- a favorable price mix effect (+€160m) reflecting the
enriched product mix and the ability to pass along price increases
in some emerging markets with an inflationary environment;
- a €102m decrease in the cost of sales, thanks notably to
the decline in purchasing costs of raw materials, components,
finished products and transportation (sea freight in
particular);
- a slight increase of €28m in growth drivers, notably in
innovation;
- rising administrative and commercial expenses (up €102m)
driven by sustained dynamic sales activation in an inflationary
context;
- negative currency effects amounting to €166m, reflecting
currency depreciation in certain emerging countries (whose impact
is offset by price hikes) and an unfavorable impact in hedging
results.
OPERATING PROFIT AND NET PROFIT
At €667m, operating profit was up 22.0%, or an increase
of €121m compared to 2022.
This includes a discretionary profit-sharing expense of -€24m
(-€18m in 2022). Furthermore, it includes other income and
expenses, amounting to -€34m, of which a third is linked to the
reorganization plan in Germany, the other components being
miscellaneous expenses for lower amounts.
The 2023 net financial result came out at -€81m, stable versus
2022.
Net profit attributable to owners of the parent came
to €386m (up 22.1% vs. 2022) factoring in:
- a tax charge of €148 million, representing an effective tax
rate of 25% for the 2023 financial year (21% in 2022), with the
increase being mainly explained by the fact that prior tax loss
carry-forwards recognized in 2022 did not recur in 2023.
- minority interests (mainly related to Supor) of €53m.
Adjusted EBITDA amounted to €985m, up 12.7% from
2022.
BALANCE SHEET
At December 31, 2023, consolidated shareholders' equity
totaled €3,461m, roughly stable versus end-2022.
At €805M, the free cash flow generated in 2023 substantially
improved after an unusual 2022 which led to consumption of
€20m. It benefited in particular from the increase in adjusted
EBITDA and a sharp decline in operating working capital
requirements (WCR) which came in at €1,169m (or 14.6% of sales),
versus €1,393m at December 31, 2022 (17.5% of sales).
This improvement can be explained:
- mostly by Group-led actions to reduce inventories, reaching
18.4% of sales at end-2023, compared to 21.1% a year earlier;
- as well as a seasonality effect on production at year-end.
The free cash flow generation allowed the Group to
finance the acquisitions made in 2023 (including SEB Alliance
investments), which amounted to €238m, as well as dividends paid
out and share buybacks.
Against this backdrop, net debt at December 31, 2023, notably
declined by €204m, to €1,769m (including €358m in IFRS 16
debt). This led to a significant improvement in the net
financial debt/adjusted EBITDA ratio, which stands at 1.8x (vs.
2.3x at the end of 2022) and 1.6x excluding the IFRS 16
impact (vs. 2.1x at end 2022).
DIVIDEND
Meeting on February 21, 2024, the Board of Directors proposed
the distribution of a dividend per share of €2.62 in respect of the
2023 financial year, up 6.9% versus the dividend paid in 2023. This
increase not only illustrates the return to profitable growth
observed in 2023, but also the Board's confidence in the Group's
ability to continue its trajectory toward responsible development
in both Consumer and Professional businesses.
For shareholders having held registered shares for more than two
years, the dividend will be increased by a loyalty premium of 10%,
taking the total dividend to €2.88 per share (for holdings below
0.5% of the capital for a single shareholder).
With the Annual General Meeting scheduled for May 23, 2024, the
coupon detachment date is set for June 3, 2024, and the dividend
will be paid on June 5, 2024.
ACQUISITION PROJECT
Today, Groupe SEB begins the process of acquiring Groupe
Sofilac. Through this acquisition, the Group aims to bolster
its expertise in the high-end cooking segment and continue growing
in the professional and semi-professional markets.
Sofilac is a family-owned French group, majority-held by the
members of the Augagneur family. With €62m in sales posted in 2023,
it designs, manufactures and distributes premium cooking equipments
targeting the semi-professional (Lacanche brand) and
professional (especially with the Charvet brand)
markets.
This acquisition would enable Groupe SEB to strengthen its
presence in the cooking equipment segment by rounding out its
existing high-end brand offering (Krampouz, Forge Adour, WMF,
All-Clad, and Lagostina). It will also support Groupe SEB's
ambition to become the gold standard in the profitable and growing
professional and semi-professional equipment markets with
complementary brands, products and distribution channels.
This transaction, expected to be completed in April 2024, is
conditioned in particular on informing and consulting employee
representative bodies within certain Groupe Sofilac companies.
OUTLOOK
At mid-term, the Group reaffirms its ambitions announced in
December 2023:
- an LFL sales compound annual growth rate (CAGR) of at least
5%;
- an operating margin progressing toward 11%;
- continued substantial generation of free cash flow.
In 2024, in a still uncertain macroeconomic and geopolitical
environment, with a slow economic recovery – especially in China,
we expect ongoing resilience in the Small Domestic Equipment market
and continued brisk development in Professional markets.
Consumer business should return to more widespread growth in
2024 in mature countries, with a gradual year-round recovery in
China and continued good dynamic in emerging markets amidst a still
penalizing currency environment. In addition, the Group intends to
continue growing its Professional business on a high comparison
basis. Given this context, the operating margin is expected to be
close to 10%.
Groupe SEB's consolidated and company financial statements at
December 31, 2023, were approved by the Board of Directors on
February 21, 2024.
CONSOLIDATED INCOME STATEMENT
(€ million)
12/31/2023
12/31/2022
12/31/2021
Revenue
8,006.0
7,959.7
8,058.8
Operating expenses
(7,280.4)
(7,339.4)
(7,245.5)
OPERATING RESULT FROM ACTIVITY
725.6
620.3
813.3
Statutory and discretionary employee
profit-sharing
(23.8)
(17.6)
(39.4)
RECURRING OPERATING PROFIT
701.8
602.7
773.9
Other operating income and expense
(34.3)
(55.7)
(59.1)
OPERATING PROFIT
667.5
547.0
714.8
Finance costs
(42.9)
(35.1)
(43.1)
Other financial income and expense
(37.6)
(45.6)
(21.4)
PROFIT BEFORE TAX
587.0
466.3
650.3
Income tax expense
(147.6)
(98.0)
(142.7)
PROFIT FOR THE PERIOD
439.4
368.3
507.6
Non-controlling interests
(53.2)
(52.1)
(53.8)
PROFIT ATTRIBUTABLE TO OWNERS OF THE
PARENT
386.2
316.2
453.8
PROFIT ATTRIBUTABLE TO OWNERS OF THE
PARENT PER SHARE (in units)
Basic earnings per share
7.01
5.74
8.42
Diluted earnings per share
6.97
5.71
8.36
CONSOLIDATED BALANCE SHEET
ASSETS (in € millions)
12/31/2023
12/31/2022
12/31/2021
Goodwill
1,868.4
1,767.9
1,707.8
Other intangible assets
1,347.5
1,305.1
1,289.9
Property, plant and equipment
1,292.2
1,338.8
1,265.6
Other investments
210.6
218.3
162.0
Other non-current financial assets
16.6
18.2
16.3
Deferred tax liabilities
151.6
135.2
129.8
Other non-current assets
65.5
58.3
52.9
Long-term derivative instruments -
assets
17.9
26.3
11.6
NON-CURRENT ASSETS
4,970.3
4,868.1
4,635.9
Inventories
1,474.8
1,682.1
1,839.6
Customers
1,018.0
891.5
934.6
Other receivables
185.0
217.1
232.4
Current tax assets
36.8
53.2
38.9
Short-term derivative instruments -
assets
40.8
76.8
115.7
Financial investments and other current
financial assets
94.7
102.0
60.6
Cash and cash equivalents
1,432.1
1,237.0
2,266.5
CURRENT ASSETS
4,282.2
4,259.7
5,488.3
TOTAL ASSETS
9,252.5
9,127.8
10,124.2
EQUITY & LIABILITIES (in €
millions)
12/31/2023
12/31/2022
12/31/2021
Share capital
55.3
55.3
55.3
Reserves and retained earnings
3,170.8
3,146.8
2,969.1
Treasury stock
(27.7)
(33.3)
(34.3)
Equity attributable to owners of the
parent
3,198.4
3,168.8
2,990.1
Non-controlling interests
262.3
280.1
300.6
CONSOLIDATED SHAREHOLDERS’
EQUITY
3,460.7
3,448.9
3,290.7
Deferred tax liabilities
198.6
212.6
234.0
Employee benefits and other long-term
provisions
210.4
213.4
298.9
Long-term borrowings
1,890.4
1,922.6
2,230.8
Other non-current liabilities
58.9
53.8
54.1
Long-term derivative instruments -
liabilities
13.9
32.9
15.3
NON-CURRENT LIABILITIES
2,372.2
2,435.3
2,833.1
Employee benefits and other short-term
provisions
125.3
138.4
132.0
Trade payables/suppliers
1,160.6
1,027.1
1,614.7
Other current liabilities
609.8
583.8
546.7
Current tax liabilities
58.8
52.6
51.8
Short-term derivative instruments -
liabilities
65.0
52.2
50.0
Short-term borrowings
1,400.1
1,389.5
1,605.2
CURRENT LIABILITIES
3,419.6
3,243.6
4,000.4
TOTAL CONSOLIDATED EQUITY AND
LIABILITIES
9,252.5
9,127.8
10,124.2
CASH FLOW STATEMENT
(€ million)
12/31/2023
12/31/2022
PROFIT ATTRIBUTABLE TO OWNERS OF THE
PARENT
386.2
316.2
Depreciation, amortization and impairment
losses
294.0
274.3
Change in provisions
(26.9)
(1.6)
Unrealized gains and losses on financial
instruments
18.4
(3.9)
Income and expenses related to stock
options and bonus shares
25.4
29.2
Gains and losses on disposals of
assets
2.6
(3.7)
Other
0.0
(5.2)
Non-controlling interests
53.2
52.1
Current and deferred taxes
147.6
98.0
Finance costs
42.9
34.4
CASH FLOW (1) (2)
943.4
789.8
Change in inventories and work in
progress
193.3
172.7
Change in trade receivables
(161.2)
160.8
Change in trade payables
185.8
(618.1)
Change in other receivables and
payables
50.5
(41.0)
Income tax paid
(147.9)
(153.8)
Net interest paid
(42.9)
(34.4)
NET CASH FROM OPERATING
ACTIVITIES
1,021.0
276.0
Proceeds from disposals of assets
5.1
13.6
Purchases of property, plant and equipment
(2)
(143.2)
(199.8)
Purchases of software and other intangible
assets (2)
(32.5)
(33.0)
Purchases of financial assets
(21.5)
(75,3)
Acquisitions of subsidiaries, net of cash
acquired
(163.3)
(71.9)
NET CASH USED BY INVESTING
ACTIVITIES
(355.4)
(366.4)
Increase in borrowings (2)
1,118.8
976.4
Decrease in borrowings
(1,263.6)
(1,614.0)
Issue of share capital
0.0
0.0
Transactions between owners
(62.8)
(33.6)
Change in treasury stock
(17.8)
(34.6)
Dividends paid, including to
non-controlling interests
(195.4)
(203.7)
NET CASH USED BY FINANCING
ACTIVITIES
(420.8)
(909.5)
Effect of changes in foreign exchange
rates
(49.7)
(29.6)
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS
195.1
(1,029.5)
Cash and cash equivalents at beginning of
period
1,237.0
2,266.5
Cash and cash equivalents at end of
period
1,432.1
1,237.0
(1) Before net finance costs and income
taxes paid.
(2) Excluding IFRS 16 impact
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, 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 result are presented in the Annual Financial
Report and Universal Registration Document filed with the Autorité
des Marchés Financiers, the French financial markets authority. The
balance sheet and income statement included in this press release
are excerpted from financial statements consolidated as of December
31, 2023, examined by SEB SA’s Statutory Auditors and approved by
the Group’s Board of Directors, dated February 21, 2024. The audit
procedures on these consolidated financial statements have been
performed. The certification report is currently being issued.
This press release may contain individually rounded data. The
arithmetical calculations based on rounded data may present some
differences with the aggregates or subtotals reported.
Conference with management on February 22 at
2:30 p.m. CET Centre de conférence Etoile Business
Center 21 Rue Balzac 75008 PARIS
Click here to access the webcast
live
Replay available on our website on February 22
at 8:00 p.m. at www.groupeseb.com
Next key dates – 2024
April 25 | after market
closes
Q1 2024 sales and financial
data
May 23 | 2:30 p.m.
Annual General Meeting
July 25 | before market
opens
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, Groupe SEB operates
with a unique portfolio of 35 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.
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Investor/Analyst relations Groupe SEB Financial
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Guillaume Baron comfin@groupeseb.com Tel. +33 (0)
4 72 18 16 04 Media Relations Groupe SEB
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