A BETTER SECOND QUARTER THAN EXPECTED IN A
CONTEXT OF GENERALIZED CRISIS
Regulatory News:
SEB SA (Paris:SK):
Consolidated financial results
(€m)
H1 2019
H1 2020
Change
2020/2019
Q2 2020
Change
2020/2019
Sales
3,337
2,914
-12.7%
-12.6% LFL
1,460
-9.5%
-8.4% LFL
Operating Result from Activity
(ORfA)
230
103
-55%
86
-6.3%
Operating profit
213
58
-72.8%
Profit attributable to owners of the
parent
100
3
-€97m
Net debt at 06/30
2,428
2,085
-€343m
% calculated in non-rounded
figures
Statement by T. de La Tour d’Artaise, Chairman and CEO of
Groupe SEB
“Against a health backdrop having heavily impacted the retail
industry and disrupted consumption, the results of the first-half
2020, with a better-than-expected second quarter, reflect the
resilience and the agility of the Group, as well as the strong
commitment of all our teams.
During the first half, despite the headwinds we faced due to the
Covid-19 pandemic, the Group continued steadfastly to pursue
development projects and the second quarter was resolutely one of
solidarity and responsibility: solidarity towards our teams through
various HR initiatives to mitigate the impacts of the crisis and
responsibility through the production of the MakAir artificial
respirator.
On top of stakes taken in new green businesses (Angell,
Castalie, IEVA), we invest today in StoreBound. This acquisition
will both strengthen our footprint in the United States and allow
synergies in terms of digital community activation as StoreBound
has developed over the past eight years the largest digital
community of our industry in the United States.
The sanitary uncertainties and their macroeconomic consequences
still persist; we remain cautious but confident in the strength of
our strategic business model, well-balanced geographically,
multi-channel and driven by a social and environmental responsible
approach.”
THE UNIQUE COVID-19 BACKDROP
The first half of 2020 was marked by the spread of the COVID-19
epidemic which began in Wuhan, China, before spreading first to
Asia and then to the rest of the world with major outbreaks in
Europe, followed by the American continent. Faced with this
unprecedented health crisis, impacting all areas of the economy,
most countries imposed more or less strict lockdown measures,
which, in particular, led to the closure of public places, hotels
and restaurants as well as most physical non-food stores. Against
this backdrop, consumer spending declined sharply in all
geographies, with an important shift to e-commerce.
Throughout the crisis, and now as ever, the Group’s priority has
been to ensure the health and safety of its employees in all of its
industrial sites, warehouses, offices, commercial subsidiaries and
stores.
Regarding our industrial operations, the Group had to
temporarily close most of its factories, in China from January,
then in France, Germany, the US, Brazil, Colombia, etc. This uneven
production level over the first half caused a major
under-utilization of capacity and periodic stock-outs, but all of
the Group’s industrial facilities - 42 sites – have now returned to
normal production levels, while also complying with health
protocols.
Early-hit by the pandemic owing to its presence in China, on
several occasions, Groupe SEB provided updates of the impact of
Covid-19 on its business activity and performance throughout the
first half. This detailed and regular newsflow is available on:
www.groupeseb.com.
GENERAL COMMENTS ON GROUP SALES
Against the weakened backdrop, first-half 2020 sales came to
€2,914m, down 12.7% versus end-June 2019, including
a 12.6% decline like-for-like (-€420m), a negative currency
impact of -0.6% (-€20m) and change in the scope of consolidation
accounting for +0.5% (+€17m; Wilbur Curtis over around one month
and Krampouz over six months).
This marked and unprecedented drop in our sales stems from our
two business divisions, with particularly volatile trends over the
period.
The 10.6% like-for-like decline in sales for the Consumer
business can be directly attributable to containment measures
and closures of non-food stores in most countries. It is the result
of a 17.3% decrease in the first quarter, followed by a much more
moderate contraction of 3.2% in the second. Having reached a low in
April, the gradual lift of lockdown restrictions from mid-May and
the marked rebound in business in June, particularly in the EMEA
region and in China, drove this improved trend.
Sales for the Professional business suffered a 27.6% drop,
like-for-like, at end-June, directly linked to the widespread
closure of the hotel and restaurant industry, moreover on demanding
comparatives. The total shutdown of operations for the vast
majority of our customers from mid-March led to a fall in Group
sales of 43.4% in the second quarter, after a contraction of 9.7%
over the first three months of the year.
DETAIL OF REVENUE BY REGION – 1st HALF-YEAR
Revenue (€m)
H1
2019
H1
2020
Change 2020/2019
Q2 2020
Like-for-like
As reported
Like-for-like*
EMEA
Western Europe
Other countries
1,401
1,033
368
1,272
915
357
-9.2%
-11.4%
-3.0%
-9.0%
-11.5%
-1.9%
-7.5%
-8.3%
-5.2%
AMERICAS
North America
South America
362
224
138
298
209
89
-17.8%
-6.6%
-35.9%
-13.3%
-6.9%
-23.7%
-17.4%
-6.7%
-35.3%
ASIA
China
Other countries
1,182
938
244
1,039
794
245
-12.1%
-15.3%
+0.1%
-11.6%
-14.4%
-0.9%
+7.6%
+10.2%
-0.3%
TOTAL Consumer
2,946
2,608
-11.4%
-10.6%
-3.2%
Professional business
391
306
-21.7%
-27.6%
-43.4%
GROUPE SEB
3,337
2,914
-12.7%
-12.6%
-8.4%
*Like-for-like: at constant exchange rates
and scope
Rounded figures in €m
% calculated in non-rounded
figures
SALES BY REGION
Revenue (€m)
H1
2019
H1
2020
Change 2020/2019
Q2 2020
LFL
As reported
Like-for-like
EMEA
Western Europe
Other countries
1,401
1,033
368
1,272
915
357
-9.2%
-11.4%
-3.0%
-9.0%
-11.5%
-1.9%
-7.5%
-8.3%
-5.2%
WESTERN EUROPE
Impacted by government containment measures, Group sales in
Western Europe suffered an organic decline of 11.5% at end-June,
with extreme volatility over the first half. After a drop of almost
15% LFL at end-March, the 8.3% decrease in the second quarter in
fact masks a huge volatility between April’s low point (-50%) and
the rebound in June (+45%), likely thanks to “catch-up” spending.
Business activity was also marked by heterogeneous situations
depending on the strictness of the containment measures in each
country in the region, as well as decisions on store closures.
In France, our sales were down only modestly in the second
quarter thanks to a loyalty program in cookware with one of our key
accounts. Despite a good performance in June, small electrical
appliance sales were nevertheless down sharply. In Germany, the
Group generated flat sales in the second quarter, with solid
momentum in June, driven by fan sales, and very buoyant online
business (in particular WMF).
Other Western European countries experienced contrasting impacts
from the crisis. Spain, Italy, the UK and Norway were the hardest
hit. Conversely, Denmark, Sweden and Belgium held up fairly
well.
Fairly generally, strong online sales momentum which prevailed
during the lockdown continued afterwards. In addition, in June, our
main physical retailers started to rebuild inventories. “Winning”
products over this exceptional period are linked to the kitchen
(cookware and electrical cooking, notably), and also include fans,
which benefited from strong pre-season sales and low inventories
following the 2019 season.
OTHER EMEA COUNTRIES
Also impacted by the epidemic as from mid-March, the region
proved relatively resilient in the first half, with a limited 2%
contraction in business activity in organic terms. This included a
slightly positive first quarter performance and a 5.2%
like-for-like decline in the second quarter. The strong catch-up
seen in June (at some +30% versus June 2019), almost fully offset
the severe drop in business in April (-40 %). Sharply accelerated
momentum of online sales, combined with the reopening of stores,
drove business activity.
However, performances at end-June were highly mixed by
geography. This was notably true in Central Europe, where contrasts
were particularly significant and revenue decrease often due to the
non-repeat in 2020 of 2019 loyalty programs.
Russia and Ukraine posted good overall performances, though
volatile in the second quarter. More specifically, Russia ended the
six-month period on a positive growth trend despite containment
measures, thanks the speed-up of its online sales, fueled by major
digital activations implemented in partnership with our
retailers.
In contrast, in Turkey, heavily impacted by the epidemic,
revenue was significantly down at the end of the second quarter.
Against a still difficult economic backdrop (including currency
issues), the partial lift of lockdown in June failed to offset the
contraction in business in April and May.
Across the entire region, the more resilient products were
Optigrill, versatile and robot vacuum cleaners, garment steamers
and Ingenio cookware.
Revenue (€m)
H1
2019
H1
2020
Change 2020/2019
Q2 2020
LFL
As reported
Like-for-like
AMERICAS
North America
South America
362
224
138
298
209
89
-17.8%
-6.6%
-35.9%
-13.3%
-6.9%
-23.7%
-17.4%
-6.7%
-35.3%
NORTH AMERICA
The approximate 7% dip in revenue LFL in the first half of the
year reflects the impact of the COVID-19 epidemic from March
onwards, with a worsening of the health crisis in the second
quarter, particularly in the United States and Mexico. The sales
decrease also comprises contrasting trends across countries, the
second quarter featuring heightened divergences.
In the United States, the economic situation has grown more
tense over the months, materializing notably in a strong rise in
unemployment. Physical distribution, a part of which was already
fragilized, was paralyzed by the closure of numerous stores due to
the crisis and was significantly impacted, while the momentum in
e-commerce has gained considerable pace.
Despite the weak economic environment, the Group’s business
activity held up well over the period, even posting organic growth
in the second quarter. The latter was driven by solid performances
in cookware (T-fal, All-Clad, Imusa) in all open retail channels,
benefiting from the government’s consumption incentive program and
increased interest in cooking during the lockdown period. In
contrast, linen care sales fell sharply. However, the expanded
distribution of Rowenta irons and garment steamers allowed the
Group to outperform a highly depressed market.
Business activity in Canada declined in a practically linear
fashion in the first six months, the result of a complicated
market, the still limited presence of e-commerce, and ongoing
pending decisions on product listing by one of our long-standing
customers.
In Mexico, the substantial drop in our half-yearly sales stemmed
from the spread of COVID-19 since mid-March, with a considerable
impact on physical retail (the proportion of e-commerce remaining
limited) and on demand.
SOUTH AMERICA
At end-June, sales in South America were down 36%, of which -24%
like-for-like. The sharp depreciation in currencies (Brazilian real
and Colombian, Argentine and Chilean pesos) costs us nearly 12
growth points, mainly in the second quarter. The latter was down
49%, of which 35% like-for-like, reflecting a significant
deterioration in business activity, combined with the impacts of
countries’ different measures to fight the spread of COVID-19.
Most of the decrease came from Brazil, the main country in the
region. Business activity declined substantially in April and May,
a period in which the network of physical retailers was almost
completely shut down and our factories were closed. In what remains
a fragile environment, restocking on the part of retailers and the
reopening of our plants helped the Group to mitigate downward trend
in June, thanks notably to e-commerce that continued to enjoy
strong momentum.
Excluding coffee (Dolce Gusto partnership) and electrical
cooking (oil-less fryers), the downturn in the second quarter
applied to all the product lines.
Colombia, our second-largest market in South America, proved
more resilient, posting much stronger catch-up in June. The Group
continued to capitalize on the power and recognition of the Imusa
brand in the country, and also continued to speed-up its e-commerce
sales.
Revenue (€m)
H1
2019
H1
2020
Change 2020/2019
Q2 2020
LFL
As reported
Like-for-like
ASIA
China
Other countries
1,182
938
244
1,039
794
245
-12.1%
-15.3%
+0.1%
-11.6%
-14.4%
-0.9%
+7.6%
+10.2%
-0.3%
CHINA
China, the Group’s number-one market, was the first country to
be affected by the COVID-19 epidemic. After a first quarter
substantially impacted by widespread containment measures and a
near-total economic shutdown, the situation has gradually improved
in the last three months.
Physical points of sale have reopened and footfall, while
initially modest, has gradually increased. But business continues
to be fueled for the most part by e-commerce, which has largely
maintained the advances achieved during the confinement period.
Our half-year turnover, down 14% in organic terms, comprises two
opposite dynamics, with a 32% fall in the first quarter and a 10%
rise in the second. The acceleration took concrete form from May
onwards. Beyond the more widespread reopening of stores, Supor
posted solid sales ahead of the 618 Shopping festival in June,
which proved a considerable sales success. Supor’s great
performance throughout the 18-day event can be attributed to solid
digital marketing activation and robust product dynamic.
The rebound was driven by small domestic appliances, and in
particular by kitchen electrics (including high-speed blenders,
baking pans and multi-cookers) and vacuum cleaners. Cookware sales
improved substantially relative to end-March, but remained
penalized in the first half, a result, mainly, of the extended
closure of the Wuhan production site.
Also of note, all of our plants in China have resumed production
and are operating at full capacity.
OTHER COUNTRIES
In Asia excluding China, like-for-like sales at end-June were
slightly down, following a second quarter that was more favorably
oriented that the first one. However, situations remain quite
contrasted across countries.
In the main country of the region, Japan, revenue contracted in
the second quarter, against a backdrop of national health
emergency. While kettles performed firmly and multicookers
continued their overall solid development throughout the quarter
driven by the launch of new products, the cookware and linen care
businesses proved more complicated.
In South Korea, which was early hit by COVID-19, the negative
effects at end-March were almost entirely offset by strong recovery
in the second quarter thanks to strong performance of Electrical
Cooking and Beverage. Solid momentum was primarily driven by the
successful launch of the Beertender draught beer system and
oil-less fryers. E-commerce, hypermarkets and our own retail were
the main drivers of robust sales growth.
In the other countries, our second-quarter performances were
highly mixed: growth in Australia and Thailand; solid momentum in
Hong Kong and Taiwan; in contrast, significant decline in
Singapore, where the confinement was extended.
COMMENTS ON PROFESSIONAL BUSINESS
Revenue (€m)
H1
2019
H1
2020
Change 2020/2019
Q2 2020
LFL
As reported
LFL
Professional business
391
306
-21.7%
-27.6%
-43.4%
The Group’s Professional business was strongly impacted in
first-half 2020 by the spread of COVID-19. The shockwaves caused by
the epidemic were reflected from mid-March onwards by containment
measures which affected half the world’s population and the
near-total closure of restaurants and fast food chains, cafés and
coffee shops, and hotels.
Against this backdrop, like-for-like sales at June 30, 2020 were
down approximately 28% subsequent to a particularly impacted second
quarter, down 43%. Sales of professional coffee machines (PCM),
constituting the largest part of business activity, accounted for
the lion’s share of the downturn, on the base of high 2019
comparatives. The extended shutdown of the main PCM customer
retailers has led to delivery suspensions, the postponement of
investment projects, and delayed or reduced orders in all the large
markets (including Germany, the United States, China, etc.).
Hotel equipment, which is largely based on contracts, was hit
even harder in the second quarter, but accounts for a lesser share
of Professional business.
OPERATING RESULT FROM ACTIVITY (ORfA)
Significantly impacted by the effects of the COVID-19 crisis on
business activity, Operating Result from Activity (ORfA) totaled
€103 million in first-half 2020, compared with €230 million
at end-June 2019. The total includes a currency effect of -€24
million and a scope effect of +€2 million (Wilbur Curtis and
Krampouz). On a like-for-like basis, ORfA came out at €125
million.
The constituent items of the change in ORfA at end-June 2020 are
as follows:
- A negative volume effect of €134 million, stemming directly
from the decrease in sales;
- A price-mix effect of -€26 million, reflecting difficult
markets and a strong promotional intensity;
- A €24 million increase in the cost of sales, including a
positive impact of renegotiated purchases and a negative impact of
a reduced manufacturing activity. The latter led to an
under-absorption of fixed costs which has only been partially
offset by short-time work measures;
- A €50 million reduction in growth drivers in a market
environment calling for lower investment and a reallocation to
digital;
- A €29 million decrease in sales, marketing and administrative
expenses, most of which coming in the second quarter, due to both
the responsiveness of the teams on cost reduction and the aid
received as part of short-time work measures, notably in
France.
The decline in Operating Result from Activity at end-June can be
attributed mainly to the first quarter (ORfA of €18 million vs.
€138 million in 2019), in which measures to counter the impacts of
the crisis either had not yet been implemented or had not yet had
an effect. Second quarter ORfA came out at €86 million, a
limited decrease of 6.3% on 2019, reflecting the savings already
achieved.
OPERATING PROFIT AND NET PROFIT
At end-June 2020, the Group's operating profit amounted to
€58 million, compared with €213 million at June 30, 2019.
This result includes an estimated employee profit-sharing expense
of €5 million (€9 million in 2019) and other operating income and
expenses of -€40 million, versus -€8 million in the first half of
last year. These expenses are stemming equally from the
restructuring of the WMF Consumer business (impairment of
industrial assets, social costs) and from several items of modest
amounts.
Net financial expense at June 30, 2020 came out at -€29 million,
compared with -€46 million in first-half 2019. The improvement
reflects both a decrease in the cost of debt and other financial
expenses relative to June 30, 2019.
In these circumstances, profit attributable to owners of the
parent totaled €3 million in the first half, compared with
€100 million at end-June 2019. This comes after a tax charge of €7
million, based on an estimated effective tax rate of 25% and after
minority interests of €19 million, compared to €27 million in the
first half of 2019, in line with the decrease in Supor's results in
China.
FINANCIAL STRUCTURE AT JUNE 30,2020
Consolidated equity at June 30, 2020, was €2,499 million,
down €129 million from end-2019 and up €176 million from June 30,
2019.
At the same date, the Group's net debt stood at €2,085 million
(including €306 million of IFRS 16 debt), down €343 million vs.
June 30, 2019 on a comparable seasonal basis, and up slightly from
December 31, 2019 (+€88 million). The increase mainly stems from
non-operational items, including the payment of dividends, Supor’s
own share repurchase, SEB Alliance investments, paid
restructurings, etc. Capital expenditures were stable in the first
half compared with the same period in 2019, as was the working
capital requirement relative to end-2019.
At June 30, 2020, the Group’s debt ratio stood at 0.8
(0.7 excluding IFRS 16) and the net debt/adjusted EBITDA ratio at
2.5 (2.2 excluding IFRS 16), in line with the seasonal
nature of activity. The Group relies on a stable financial base,
underpinned by a healthy and well-balanced financing structure in
terms of instruments and maturity, and free of financial
covenants.
OUTLOOK
Given the seasonal nature of the Consumer business, the first
half of the year is traditionally not representative of the entire
year.
Additionally, the first six months of the year have been heavily
disrupted by the effects of an unprecedented health crisis on the
global economy.
In a highly volatile environment, the Group posted a better than
expected second quarter, both in terms of sales and Operating
Result from Activity.
However, at this stage, major uncertainties remain as to how the
recovery will play out, especially considering the continued
severity of the health crisis in the Americas and the resurgence of
the epidemic in some countries, leading to the reintroduction of
containment measures. This limited visibility and these issues lead
the Group to remain cautious and not to extrapolate to the coming
months the improvement seen in the end of the second quarter in the
Consumer activity. Depending on the evolution of consumption in the
second half, the Group could over-invest in growth drivers to fuel
growth and prepare for 2021.
Regarding the Professional Coffee business, we expect sales to
remain disrupted in the second half consequently to the near-total
and extended closure of the hospitality and catering sector. It is
indeed likely that some of our customers have to adjust the envelop
or timing of their investments, hence delaying orders.
Furthermore, recent currencies variations lead us to foresee
negative currency effects on Operating Result from Activity that
could range between €-70m to €-90m. Raw materials should however
have a slightly positive impact.
Given these circumstances, Groupe SEB is confirming that it is
not possible at this stage to precisely quantify the impacts of
COVID-19 on the year as a whole, but that revenue and Operating
Result from Activity will fall significantly in 2020.
Looking beyond this atypical year 2020, the Group reaffirms its
confidence in its solid and well-balanced business model that
enables it to maintain its long-term strategy and navigate the
current crisis smoothly.
Groupe SEB’s company and consolidated financial statements at
June 30, 2020, were approved by the Board of Directors’ meeting
held on July 22, 2020.
CONSOLIDATED INCOME STATEMENT
(in € millions)
30/06/2020
6 months
30/06/2019
6 months
31/12/2019
12 months
Revenue
2,914.4
3,336.6
7,353.9
Operating expenses
(2,811.0)
(3,106.8)
(6,614.1)
OPERATING RESULT FROM ACTIVITY
103.4
229.8
739.8
Statutory and discretionary employee
profit-sharing*
(5.0)
(9.0)
(37.2)
RECURRING OPERATING PROFIT
98.4
220.8
702.6
Other operating income and expense
(40.2)
(8.2)
(82.1)
OPERATING PROFIT
58.2
212.6
620.5
Finance costs
(16.5)
(20.9)
(41.1)
Other financial income and expense
(12.2)
(24.9)
(19.6)
Share of profits of associates
0.0
0.0
PROFIT BEFORE TAX
29.5
166.8
559.8
Income tax expense
(7.4)
(40.2)
(131.5)
PROFIT FOR THE PERIOD
22.1
126.6
428.3
Non-controlling interests
(19.4)
(26.6)
(48.6)
PROFIT ATTRIBUTABLE TO OWNERS OF THE
PARENT
2.7
100.0
379.7
PROFIT ATTRIBUTABLE TO OWNERS OF THE
PARENT PER SHARE (IN UNITS)
Basic earnings per share
0.05
2.01
7.63
Diluted earnings per share
0.05
2.00
7.58
* Including 2019 employee share ownership plan expenses
BALANCE SHEET
ASSETS (in € millions)
30/06/2020
30/06/2019
31/12/2019
Goodwill
1,642.6
1,614.9
1,611.3
Other intangible assets
1,259.7
1,249.1
1,261.9
Property, plant and equipment
1,189.4
1,225.8
1,248.0
Investments in associates
-
Other investments
87.0
54.3
100.4
Other non-current financial assets
19.0
14.7
38.6
Deferred tax assets
95.7
108.9
96.3
Other non-current assets
48.2
50.7
58.0
Long-term derivative instruments -
assets
6.3
6.2
3.4
NON-CURRENT ASSETS
4,347.9
4,324.6
4,417.9
Inventories
1,194.0
1,308.0
1,189.1
Trade receivables
860.5
984.3
1,159.7
Other receivables
135.9
146.6
175.1
Current tax assets
51.9
42.9
57.4
Short-term derivative instruments -
assets
39.1
31.9
20.5
Financial investments and other financial
assets
47.4
74.7
10.2
Cash and cash equivalents
1,746.3
588.2
785.5
CURRENT ASSETS
4,075.1
3,176.6
3,397.5
TOTAL ASSETS
8,423.0
7,501.2
7,815.4
EQUITY & LIABILITIES (in €
millions)
30/06/2020
30/06/2019
31/12/2019
Share capital
50.3
50.2
50.3
Reserves and retained earnings
2,237.0
2,110.7
2,395.1
Treasury stock
(18.8)
(53.9)
(52.8)
Equity attributable to owners of the
parent
2,268.5
2,107.0
2,392.6
Non-controlling interests
230.3
216.4
234.9
CONSOLIDATED SHAREHOLDERS’
EQUITY
2,498.8
2,323.4
2,627.5
Deferred tax liabilities
242.2
227.2
222.3
Employee benefits and other long-term
provisions
340.4
356.9
339.5
Long-term borrowings
2,638.2
2,337.6
2,301.8
Other non-current liabilities
52.5
59.6
55.2
Long-term derivative instruments –
liabilities
19.4
26.2
17.1
NON-CURRENT LIABILITIES
3,292.7
3,007.5
2,935.9
Employee benefits and other short-term
provisions
106.1
78.1
107.8
Trade payables
853.2
932.1
1,044.8
Other current liabilities
415.2
371.8
527.6
Current tax liabilities
1.8
33.4
74.1
Short-term derivative instruments –
liabilities
16.8
30.7
27.1
Short-term borrowings
1,238.4
724.2
470.6
CURRENT LIABILITIES
2,631.5
2,170.3
2,252.0
TOTAL EQUITY AND LIABILITIES
8,423.0
7,501.2
7,815.4
APPENDIX
REVENUE BY REGION – 2ND QUARTER
Revenue (€m)
Q2
2019
Q2
2020
Change 2020/2019
As reported
LFL*
EMEA
Western Europe
Other countries
690
515
175
631
472
159
-8.5%
-8.3%
-9.2%
-7.5%
-8.3%
-5.2%
AMERICAS
North America
South America
194
121
73
149
112
37
-23.1%
-7.8%
-48.6%
-17.4%
-6.7%
-35.3%
ASIA
China
Other countries
523
396
127
556
429
127
+6.4%
+8.3%
+0.4%
+7.6%
+10.2%
-0.3%
TOTAL Consumer
1,407
1,336
-5.0%
-3.2%
Professional business
208
124
-40.3%
-43.4%
GROUPE SEB
1,615
1,460
-9.5%
-8.4%
*Like-for-like: at constant exchange rates
and scope
Rounded figures in €m
% calculated in non-rounded
figures
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 the “cash from operating
activities” item in the consolidated cash flow statement, adjusted
for non-recurring transactions with an impact on the Group’s net
debt (for example, cash outflows related to restructuring) and
after taking account of recurring investment (CAPEX).
SDA
Small Domestic Appliances: Kitchen Electrics, Home and Personal
Care
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 “Leases” 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 June 30, 2020 examined by SEB SA’s
Statutory Auditors and approved by the Group’s Board of Directors,
dated July 22, 2020.
Watch the live webcast and presentation at
10:00 p.m. CET on our website: www.groupeseb.com or click here
Next key dates - 2020
October 26 | after market closes
9-month 2020 sales and financial
data
Find us on www.groupeseb.com
World reference in small domestic equipment, Groupe SEB operates
with a unique portfolio of more than 30 top brands including Tefal,
Seb, Rowenta, Moulinex, Krups, Lagostina, All-Clad, WMF, Emsa,
Supor, marketed through multi-format retailing. Selling more than
360 million products a year, it deploys a long-term strategy
focused on innovation, international development, competitiveness
and service to clients. Present in over 150 countries, Groupe SEB
generated sales of €7.3 billion in 2019 and has more than 34,000
employees worldwide.
SEB SA SEB SA – N° RCS 300 349 636
RCS LYON – with a share capital of €50,307,064 – Intracommunity
VAT: FR 12300349636
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200722005957/en/
Investor/Analyst Relations Groupe SEB Financial
Communication and Investor Relations Isabelle Posth
Raphaël Hoffstetter comfin@groupeseb.com Tel: + 33
(0) 4 72 18 16 04 Media Relations Groupe SEB
Corporate Communication Dept Cathy Pianon Caroline
Philips com@groupeseb.com
Phone: + 33 (0) 6 33 13 02 00 Phone: + 33 (0) 6 49 82 28
45 Image Sept Caroline Simon Claire
Doligez Isabelle Dunoyer de Segonzac caroline.simon@image7.fr cdoligez@image7.fr isegonzac@image7.fr Phone: + 33 (0) 1 53
70 74 70
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