Wednesday 24 April 2024
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Groupe Seb boasts strong performance in 2023 with sales exceeding €8 billion

The excellent performance of the Professional business (+26.5% LFL), fueled by the continued international expansion of Professional Coffee

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ECULLY, France – 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:

DVG De Vecchi

– 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.

La Cimbali

Stanislas de Gramont, Chief Executive Officer of Groupe SEB said:

“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.”

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. This business encompasses Professional Coffee, which accounts for more than 90% of sales (including the WMF, Schaerer, Wilbur Curtis and La San Marco brands), hotel equipment, Krampouz, Zummo and Pacojet;
  • 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.

Groupe Seb: 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).


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.


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%.

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