Sunday 21 July 2024
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Groupe Seb reports FY sales of €7,960m (-1.2%), confirms solid recovery of Professional Coffee

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ECULLY, France – Groupe Seb, a leading producer of small household appliances for professional and domestic use, as well as a world leader in the segment of professional coffee machines, listed on the Euronext in Paris, reported Thursday full-year results for fiscal 2022. The Group Groupe SEB generated 2022 sales of €7,960m, almost stable (-1.2%) vs. 2021 on a reported basis and down 4.7% LFL.

The difference between these two figures can be attributed to a strong positive currency effect (+3.3%), stemming very largely from the appreciation of the US dollar and the Chinese yuan.

The consolidation impact, in the fourth quarter of Zummo, acquired last summer, amounted to €10m. Groupe Seb recently acquired La San Marco, an Italian company that manufactures, markets and distributes professional coffee machines and grinders, with a recognized leadership in the espresso machine segment with the traditional lever system.

These performances confirm the sound resilience of the Group in a tense geopolitical environment compared with the record performance reported in 2021. Compared with 2019, the most recent normal year, 2022 revenue was up 8.2% and confirms the Group’s positive trajectory over time.

After a record 2021 (organic growth of 16% vs 2020), the Consumer business generated sales of €7,234 million, contracting 5.9% LFL compared with 2021. This decline was attributable to four countries, which represent one-third of Consumer revenue:

  • France (down 22% vs. 2021) and in Germany (-13%) owing to the rebalancing of household consumption towards other sectors to the detriment of Small Domestic Equipment, an unfavorable category mix effect (cooking categories overweighted and oversold during the Covid period) and the non-recurrence in 2022 of major loyalty programs;
  • Russia and Ukraine, where sales collapsed more than 30% vs. 2021 LFL.

On the other hand, China confirmed its positive momentum with sales showing organic growth of 5% and crossing the two-billion-euro mark.

In other regions, business was mixed, with organic growth in Eurasia (excluding Russia and Ukraine) and in South America, resilience in other European countries, and sales down in North America as well as in Asia excluding China.

Full-year sales in the Professional business came out at €725 million, up 15.6% including 9.2% organic growth compared with 2021. This performance reflects the solid recovery of Professional Coffee (90% of professional turnover), driven by both machine deliveries and by services. Hotel equipment also turned in a very good year in 2022, benefiting from a strong catch-up effect compared with 2021.

Fiscal 2022 profit attributable to owners of the parent dropped 30.3 percent to 316 million euros from last year’s 454 million euros.

Earnings per share fell to 5.71 euros from 8.36 euros a year ago.

Operating profit declined 23.5 percent from last year to 547 million euros, and operating margin dropped to 7.8 percent from 10.1 percent in 2021.

Annual sales totalled 7.96 billion euros, down 1.2 percent from 8.06 billion euros a year ago. Sales declined 4.7 percent on a like-for-like basis.

Despite the current uncertainties, Groupe SEB remains confident in the future and optimistic about the structural growth outlook for the Small Domestic Equipment and professional coffee markets worldwide.

For the year 2023, after a first quarter which will see a decline in revenue and Operating Result from Activity (ORFA) compared to a strong first quarter of 2022, the Group anticipates a gradual recovery in its Consumer sales, strong growth in its Professional revenue and an improvement in its Operating margin for the year as a whole.

In 2022, in a difficult general economic environment and after a record year in 2021, our sales were globally resilient,Stanislas de Gramont, Chief Executive Officer of Groupe SEB. “We are particularly pleased with our performance in China, where Supor for the first time exceeded the two-billion-euro turnover mark. However, our results were impacted by significant headwinds. In this context, the Group was once again able to demonstrate responsiveness and quickly implement effective action plans to adapt to market developments and protect its profitability.

We are confident in the continued development of the global market for Small Domestic Equipment and Professional Coffee, in which we continue to strengthen our presence with the recent acquisition of the San Marco company. We remain convinced of the relevance of our economic model, which will allow us to take full advantage of strong structural demand, a source of growth opportunities for Groupe SEB.

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