- Annual sales: €6,940m, -5.6% as reported and -3.8%
LFL*
- Q4 sales: €2,228m, -0.5% as reported and +2.9% LFL*
Regulatory News:
Statement of Thierry de La Tour d’Artaise, Chairman and Chief
Executive Officer of Groupe SEB:
“For all of us, 2020 will be remembered as the year of an
unprecedented health crisis with major economic impacts.
This health crisis revealed two key trends: certain practices,
such as home cooking, became more widespread, enabling us to
demonstrate the relevance of our products ,and services and
customers made ever-greater use of e-commerce, a trend we believe
is here to stay.
Thanks to the agility and commitment of our teams, we delivered
a good fourth-quarter performance, reflecting the Group’s
resilience over the past year, despite difficulties encountered in
the Professional business owing to the persistence of the
pandemic.
The Group stayed the course and continued to pursue its active
M&A strategy with the acquisitions of StoreBound and Angell, as
well as stepped up existing efforts on key strategic projects.
Today, the market environment is uncertain, but we remain
confident in our fundamentals, which will be key strengths as we
navigate this trying period.”
* LFL: on a like-for-like basis (= organic)
GENERAL COMMENTS ON GROUP SALES
The economic environment was highly disrupted in 2020, marked by
an unprecedented health crisis that was reflected in a worldwide
economic recession.
In this difficult and uncertain context, Groupe SEB delivered
satisfactory performances in 2020. Following a good fourth
quarter, annual turnover came out at €6,940m, down 5.6% year on
year. The decline comprises a limited organic decrease of 3.8%, a
currency effect of -€219m (-3.0%) and a scope effect (mainly
Storebound, acquired in July 2020) of +€81m (+1,2%).
The Consumer business ends the year on a positive tone, with
annual sales practically stable LFL (-0.5%). This stability is
the result of several factors:
- the resilience of household consumption,
notably in products for the home;
- a rapid ramp-up in online sales starting
with the initial lockdowns, which offset in part the steep decline
in in-store sales (mandatory closures and/or decrease in
footfall);
- major sales volatility from one month to
the next, with periods of substantial restocking by retailers;
- a less promotional environment overall.
In contrast, Professional sales fell 30.7% LFL in 2020,
impacted by extremely limited business activity in the hospitality
and catering sectors. This situation led our customers to suspend,
postpone or reduce their investments in equipment (coffee machines)
and significantly limited maintenance interventions.
After a difficult first half (sales down -12.7% and -12.6%
LFL), in which the Consumer business was strongly impacted by
very strict health measures in many countries, starting with China,
the Group returned to growth in the second half of the year
(+0.2%, of which +3.6% organic growth). This recovery resulted
from a rebound in small domestic equipment (+7.8% LFL in the second
half), against a backdrop of generally strong resilience in demand
but a monetary environment that has been considerably tense since
the summer (currency effect of -€219m on turnover stemming from the
significant depreciation of the Russian ruble, Turkish lira,
Brazilian real, Mexican peso, Colombian peso, and the US dollar
against the euro). The Professional business declined throughout
the year, with a significant disruption starting in the second
quarter.
More specifically, the trend in the fourth quarter was
consistent with that in the third quarter. While reported
sales, at €2,228m, were down slightly on 2019 (-0.5%) owing to more
penalizing currency effects (-€109m, -4.9%), organic growth came
out at +2.9% (vs. +4.4% in the third quarter) and was more buoyant
than expected, particularly at the end of the period. The scope
effect amounted to +€32m, or +1.5%.
As in the third quarter, the LFL increase in turnover in the
fourth quarter is due to the strong momentum of the Consumer
business (up 6.2%), which:
- continued to be driven by all continents;
the implementation from mid-November onwards of new health measures
in some regions (partial lockdowns, curfews, store closures, etc.)
had no impact on sell-in;
- continued to be bolstered by a strong small
domestic equipment market;
- is still to be attributed mainly to
e-commerce;
- benefited from increased growth drivers, as
announced.
However, the fourth quarter did not see a clear improvement
in the Professional business, which continued to be heavily
impacted by the difficulties of the hospitality and catering
sectors.
GUIDANCE UPDATE
The improved momentum in Consumer sales in the fourth quarter,
also driven by significant investments in growth drivers, should be
reflected in a more limited decrease in 2020 Operating Result
from Activity (ORfA) than announced at the end of October (between
-25% and -30% vs. 2019). 2020 ORfA is expected to come out
at around €600m (including, as expected, a negative currency
effects slightly above €100m and a positive raw material effect).
Ultimately, the generation of operating cash flow will be strong
despite the complicated year.
DETAIL OF REVENUE BY REGION
Unaudited figures
Revenue in €m
2019
2020
Change 2020/2019
Q4 Change 2020/2019
As reported
Like-for-like*
As reported
Like-for-like*
EMEA
Western Europe
Other countries
3,339
2,442
897
3,307
2,406
901
-1.0%
-1.5%
+0.4%
+1.5%
-1.5%
+9.6%
+2.6%
+2.3%
+3.3%
+7.0%
+2.5%
+19.7%
AMERICAS
North America
South America
915
589
326
876
622
254
-4.2%
+5.7%
-22.1%
-0.2%
-0.3%
+0.1%
+2.7%
+8.6%
-9.1%
+6.3%
-0.8%
+20.4%
ASIA
China
Other countries
2,301
1,762
539
2,182
1,626
556
-5.2%
-7.7%
+3.2%
-3.4%
-6.1%
+5.2%
+2.4%
+1.8%
+4.2%
+4.5%
+3.1%
+8.3%
TOTAL Consumer
6,555
6,365
-2.9%
-0.5%
+2.5%
+6.2%
Professional business
799
575
-28.0%
-30.7%
-30.0%
-28.5%
GROUPE SEB
7,354
6,940
-5.6%
-3.8%
-0.5%
+2.9%
*
Like-for-like: at constant exchange rates and scope
Rounded
figures in €m
%
calculated on non-rounded figures
COMMENTS ON CONSUMER SALES BY REGION
Revenue in €m
2019
2020
Change 2020/2019
Q4 Change 2020/2019
As reported
Like-for-like*
As reported
Like-for-like*
EMEA
Western Europe
Other countries
3,339
2,442
897
3,307
2,406
901
-1.0%
-1.5%
+0.4%
+1.5%
-1.5%
+9.6%
+2.6%
+2.3%
+3.3%
+7.0%
+2.5%
+19.7%
WESTERN EUROPE
After a solid third quarter, business activity continued to
trend positively in the last three months of the year (+2.5% LFL).
The slowdown in momentum resulted primarily from loyalty programs,
which were more substantial in 2019. December in particular was
brisker than expected.
Growth in the fourth quarter was fueled by almost all the
markets, despite the retightening of health measures at the end of
the period in some countries. It continued to be driven largely by
e-commerce and was boosted by increased growth drivers, as
announced.
In France, fourth quarter sales, up slightly, continued to
benefit from robust demand for cooking categories and vacuum
cleaners, the roll-out of new products such as Cookeo Touch and
Companion Touch, and the buoyancy of e-commerce. However, sales
were negatively impacted by the closure of our proprietary stores
during the new lockdown period in October and November.
In the other countries, apart from Belgium, owing to strong 2019
comparatives, and the UK, business was sustained, overall. This was
the case in Northern Europe, Portugal and the Netherlands, which
were less affected by containment measures as well as Germany,
Spain – thanks notably to solid performances by WMF products and an
acceleration of online sales – and Italy.
The key growth drivers were kitchen electrics (electrical
cooking, coffee makers and food preparation) and vacuum cleaners
(notably robots).
OTHER EMEA COUNTRIES
With organic sales growth of nearly 20%, the Group confirmed its
excellent third-quarter performance in the last three months of the
financial year. After a slight decline in sales in the first half
owing to the emergence of COVID-19, catch-up in the second half of
the year proved remarkable, despite continued complications in the
overall environment. The performance led to a 9.6% LFL increase in
turnover for the year as a whole.
However, the performance in euros, both for the quarter and the
year, was negatively impacted by the continued and sometimes
considerable depreciations of some currencies, including the
Russian ruble, the Turkish lira and the Ukrainian hryvnia. These
depreciations were offset in part by price increases.
Our major markets (Russia, Poland, Ukraine, Romania, Turkey,
etc.) and ongoing development of the core business in Central Asia
were the main catalysts behind this business momentum, fueled
largely by e-commerce (click & mortar and pure players) and the
implementation of our direct-to-consumer activities. However,
performances were softer in the Middle East and Egypt.
In terms of products, the strong sales dynamic across the region
was driven in particular by the confirmed success of our best
sellers (vacuum cleaners, Optigrill, Ingenio cookware, etc.).
Despite the difficult conditions, 2020 thus marked a new step
forward in our development in Eurasia.
Revenue in €m
2019
2020
Change 2020/2019
Q4 Change 2020/2019
As reported
Like-for-like*
As reported
Like-for-like*
AMERICAS
North America
South America
915
589
326
876
622
254
-4.2%
+5.7%
-22.1%
-0.2%
-0.3%
+0.1%
+2.7%
+8.6%
-9.1%
+6.3%
-0.8%
+20.4%
NORTH AMERICA
After a vigorous third quarter, organic momentum lost steam at
the end of the year. Business trends differed between countries in
the fourth quarter. In addition, the unfavorable currency effect
across the region has accentuated month after month since summer.
The increase in reported sales is thus to be attributed to the
integration of Storebound, acquired in July.
In the United States, while sales decreased slightly on a
like-for-like basis in the fourth quarter, organic growth for the
year was solid, coming out at nearly 6%. With the crisis
persisting, the retail sector continued to transform, with a
substantial acceleration in the growth of traditional retailers’
online sales. Demand has also clearly been bolstered by the
consumption incentive program introduced by the US government in
April 2020. Consequently, momentum in cookware was highly positive
under our three emblematic brands in the United States, T-Fal,
All-Clad and Imusa, with annual sales up double digit on an organic
basis, in line with market performance. In contrast, linen care
struggled throughout the year as the market contracted.
At the same time, following a very good fourth quarter marked by
sales up nearly 60% in dollars, Storebound had an excellent 2020,
with growth of more than 50%. This was mainly driven by iconic
products (small kitchen electrics appliances) and new products from
the Dash brand. Acquired in July, Storebound has been consolidated
over 5 months.
Canada and Mexico enjoyed a positive fourth quarter, with
buoyant core business, notably in electrical cooking in the former
and the contribution of a new loyalty program in the latter.
SOUTH AMERICA
Amid a general deterioration in the backdrop, resulting from the
health crisis as well as significant currencies depreciation, the
Group reported satisfactory performances in South America in 2020.
After a very difficult first half (with sales down 27.3% LFL), the
situation turned around in the second half (+17.8% LFL, with a
linear trend in the third and fourth quarters). Despite price
increases, the weakening of South American currencies weighed
heavily on sales in euros.
In Brazil, the recovery initiated in the third quarter continued
in the fourth, enabling the Group to post organic turnover
stability for the year as a whole. Fourth-quarter growth, at around
+23% LFL, was driven by weather conditions favorable to fan sales
and a strong “cooking market” that benefited electrical cooking,
food preparation and cookware.
Overall, the large majority of retail channels contributed to
the sales dynamism, particularly e-commerce, which has been ramping
up at an ever-brisker pace.
In Colombia, business activity in pesos in the second half (and
fourth quarter) increased by over 20% on strong demand for cooking
products and the swift development of online sales.
Revenue in €m
2019
2020
Change 2020/2019
Q4 Change 2020/2019
As reported
Like-for-like*
As reported
Like-for-like*
ASIA
China
Other countries
2,301
1,762
539
2,182
1,626
556
-5.2%
-7.7%
+3.2%
-3.4%
-6.1%
+5.2%
+2.4%
+1.8%
+4.2%
+4.5%
+3.1%
+8.3%
CHINA
The market environment fluctuated throughout the year in China,
with a strong contrast between the momentum in online distribution
and the lasting negative trend for offline channels. The start of
the year was severely impacted by COVID-19, but Supor returned to
organic growth as early as the second quarter. These three positive
quarters allowed to largely offset the sharp contraction in sales
reported on March 31.
In addition, with Chinese New Year to fall on February 12, 2021,
early sell-in in fourth-quarter 2020 was considerably limited, in
contrast with sell-in in late 2019.
In cookware, Supor’s business was significantly undermined by
the extended closure of the Wuhan industrial plant and sales have
been sharply down on a full-year basis. However, the recovery
initiated in the third quarter was confirmed and heightened in the
fourth, fueled by most product families (woks, pressure cookers,
frying pans, thermal mugs, etc.) and driven by a notable increase
in e-commerce sales.
Small electrical appliance turnover grew slightly in the fourth
quarter, with contrasting performances across product categories.
As in the third quarter, high-speed blenders remained the
best-sellers in kitchen electrics, and the progress achieved by
Supor have reinforced its number-two ranking in this buoyant
segment. Sales growth was also driven by further inroads by the WMF
brand in premium products and the introduction of more “Western”
categories such as oil-less fryers and ovens.
In the very special context of 2020, stepping up digital
activation and targeting of millennials has been at the heart of
Supor's priorities.
OTHER ASIAN COUNTRIES
In Asia excluding China, after the positive trend reversal in
the third quarter, Group turnover continued to be fueled by solid
organic momentum in the fourth quarter (+8.3% LFL), despite
resuming pandemic-related issues in several countries in December.
Almost all the markets contributed to revenue growth, both
quarterly and annually, which was underpinned as elsewhere by a
strong acceleration in online sales.
In Japan, our largest market in the region, the Group posted
excellent performances in the fourth quarter in a firm market. The
dynamic reflected the confirmed success of our flagship products or
categories, such as Ingenio cookware and electrical pressure
cookers, as well as robust business, both offline -including in our
retail network- and online, boosted by major advertising and
marketing campaigns.
In South Korea, following a vigorous third quarter, year-end
activity was more modest, impacted in particular by a decline in
store footfall owing to the resurgence of Covid-19 epidemic and by
the impact on volumes of price increases implemented in early
October. However, the extension of the product offering (new
categories, new product launches) and the additional listings
earned in e-commerce and with specialized retailers were major
business drivers in 2020.
In almost all the other countries, growth was confirmed, and
even accelerated, in the fourth quarter. Australia posted record
sales in 2020, mainly thanks to expanded distribution. In Thailand,
Malaysia, Hong Kong, Singapore and Vietnam, the Group achieved
double-digit organic growth in the fourth quarter.
COMMENTS ON PROFESSIONAL BUSINESS ACTIVITY
Revenue in €m
2019
2020
Change 2020/2019
Q4 Change 2020/2019
As reported
Like-for-like*
As reported
Like-for-like*
Professional business
799
575
-28.0%
-30.7%
-30.0%
-28.5%
Following an excellent 2019, bolstered by the delivery of major
contracts in the Professional Coffee business (notably with North
American customers), 2020 promised to be a challenging year owing
to the particularly demanding comparatives.
Furthermore, the outbreak of the COVID-19 epidemic and the
ensuing health and economic crisis had dramatic consequences on the
hotel, restaurant and catering sector, directly hit by the
restrictive measures implemented in most countries. Extending over
almost half of the year in 2020, these closures:
- substantially impacted equipment sales, as our customers
suspended, postponed or significantly reduced their investments in
coffee machines;
- also considerably limited service and maintenance
activities.
As a result of high 2019 comparatives and the health crisis, the
Group’s Professional division turnover decreased by around 30%,
both for the year and the fourth quarter, reflecting a severely hit
business over the past nine months. However, customer diversity as
well as WMF and Schaerer’s international presence somewhat
mitigated the impact on the core business (excluding deals), in a
currently “devastated” sector.
In this very tough context, commercial activity has been pursued
in order to seize all future growth opportunities and feed the
contract pipeline.
Hotel equipment, a small business activity in the Professional
division, has also been severely affected by the crisis.
APPENDICE
REVENUE BY REGION – FOURTH QUARTER
Unaudited figures
Revenue in €M
Q4
2019
Q4
2020
Change 2020/2019
As reported
Like-for-like*
EMEA
Western Europe
Other countries
1,159
856
303
1,189
876
313
+2.6%
+2.3%
+3.3%
+7.0%
+2.5%
+19.7%
AMERICAS
North America
South America
285
190
95
292
205
86
+2.7%
+8.6%
-9.1%
+6.3%
-0.8%
+20.4%
ASIA
China
Other countries
586
423
163
600
430
170
+2.4%
+1.8%
+4.2%
+4.5%
+3.1%
+8.3%
TOTAL Consumer
2,030
2,081
+2.5%
+6.2%
Professional Business
210
147
-30.0%
-28.5%
GROUPE SEB
2,240
2,228
-0.5%
+2.9%
* Like-for-like: at constant exchange rates
and scope
Rounded
figures in €m
%
calculated on non-rounded figures
Conference with management on January 21 at
6:00 p.m. CET
Please click on the following link to access
the live webcast
The webcast will also be available at
www.groupeseb.com on January 21 as of 8:00 p.m. CET
Access (audio only): From France: +33 (0) 1
7037 7166 - Password : SEB From other countries: +44 (0) 33 0551
0200- Password: SEB
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.
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.
Operating Result from Activity (ORfA)
Operating Result from Activity (ORfA) is Groupe SEB’s main
performance indicator. It corresponds to sales minus operating
costs, i.e. the cost of sales, innovation expenditure (R&D,
strategic marketing and design), advertising, operational marketing
as well as commercial and administrative costs. ORfA does not
include discretionary and non-discretionary profit-sharing or other
non-recurring operating income and expense.
Free cash flow
Free cash flow corresponds to the “net cash from operating
activities” item in the consolidated cash flow statement, adjusted
from 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 investments (CAPEX).
Net 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 financial
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, led 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.
SDA
Small Domestic Appliances: Kitchen Electrics, Home and Personal
care
PCM
Professional Coffee Machines
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
environment, 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.
Next key dates - 2021
February 25 | before market opens
2020 sales and results
April 22 | after market closes
Q1 2021 sales and financial data
May 20 | 3:00 pm (Paris time)
Annual General Meeting
July 23 | before market opens
H1 2021 sales and results
October 26 | after market closes
9-month 2021 sales and financial
data
Find us on www.groupeseb.com
World reference in small domestic equipment, Groupe SEB operates
with a unique portfolio of 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 client
service. Present in over 150 countries, Groupe SEB generated sales
of €6.9 billion in 2020 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/20210121005809/en/
Investor/Analyst Relations
Groupe SEB Financial Communication and IR Dept
Isabelle Posth Raphaël Hoffstetter
comfin@groupeseb.com
Tel: + 33 (0) 4 72 18 16 04
Media Relations
Groupe SEB Corporate Communication Dept
Cathy Pianon Anissa Djaadi
com@groupeseb.com
Tél. + 33 (0) 6 33 13 02 00 Tél. + 33 (0) 6 88 20 90 88
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
SEB (EU:SK)
Historical Stock Chart
Von Mär 2024 bis Apr 2024
SEB (EU:SK)
Historical Stock Chart
Von Apr 2023 bis Apr 2024