Provisional sales 2019 - unaudited figures -
- Annual sales: €7,354m, +8,0% and +5.8% LFL*
- Q4 sales €2,240m, +2.5% and +0.9% LFL*
Regulatory News:
GENERAL COMMENTS ON GROUP REVENUE
Groupe SEB (Paris:SK) recorded sales of €7,354 million in 2019,
up 8.0%, including organic growth of 5.8%, a currency effect of
+1.0% (or +€71 million) and a scope effect of +1.2% (€75 million),
reflecting the consolidation of Wilbur Curtis on 11 months and
Krampouz on 3 months.
This solid business momentum arises from:
- Consumer sales growing firmly, up 5.2% like-for-like,
nurtured by all geographic areas and all product lines -
Professional activity which continued its fast development, up
12.1 % like-for-like, despite demanding 2018 comparatives.
This strong performance has been achieved in an overall
complicated and volatile environment. Representing the 6th
consecutive year of organic growth above 5%, it reflects the
relevance of the Group’s strategy.
Fourth-quarter sales totaled €2,240 million, up 2.5%. Organic
growth, of + 0.9%, would reach + 2.3% when adjusted for the
positive non-recurring events** in Brazil over the last 3 months of
2018. Sales momentum continued in Eurasia, in China (organic growth
exceeding 15%) and in Professional Coffee. However, business at the
end of the year finally proved less firm than anticipated in
Western Europe, especially in Germany and France.
* Like-for-like: at constant exchange rates and scope of
consolidation. ** recognition in revenue of tax receivables
OUTLOOK
Based on its provisional sales, Groupe SEB indicates that the
increase in its reported Operating Result from Activity should
be between 6% and 6.5% in 2019.
Furthermore, the total amount of non-recurring expenses
should reach approximately 80 M€. It will notably include the
provisions for the restructuring of WMF’s Consumer business,
previously announced. In addition, the investigations carried out
at Groupe SEB Deutschland and mentioned in our financial
communication of end-October, were continued and finalized. The
findings lead us to extend to previous financial years (mainly
2018) the accounting adjustments related to business practices that
derogated from the Group’s principles. The corresponding amount
should be close to €20 million.
DETAIL OF REVENUE BY REGION
Revenue in €M
2018
2019
Change 2019/2018
Q4 2019
Like-for-like
As reported
Like-for-like*
EMEA
Western Europe
Other countries
3,223
2,430
793
3,339
2,442
897
+3.6%
+0.5%
+13.1%
+3.3%
+0.3%
+12.4%
-1.1%
-4.8%
+10.7%
AMERICAS
North America
South America
887
547
340
915
589
326
+3.2%
+7.8%
-4.3%
+2.1%
+2.9%
+0.7%
-9.8%
-3.8%
-19.0%
ASIA
China
Other
countries
2,067
1,554
513
2,301
1,762
539
+11.3%
+13.3%
+5.1%
+9.4%
+12.2%
+1.2%
+9.9%
+15.4%
-2.6%
TOTAL Consumer
6,177
6,555
+6.1%
+5.2%
+0.4%
Professional business
635
799
+25.9%
+12.1%
+6.3%
GROUPE SEB
6,812
7,354
+8.0%
+5.8%
+0.9%
* Like-for-like: at constant exchange rates and scope Rounded
figures in €m % calculated in non-rounded figures
COMMENTS ON CONSUMER SALES BY REGION
WESTERN EUROPE
The Group recorded in 2019 a slight increase in its revenue,
stepping-up sales growth in e-commerce, achieving good performances
in its Home & Cook retail network and developing WMF’s
activity. However, business at the end of the year trended
materially down, with disparate situations across countries.
In France, annual sales were stable following a fourth quarter
which proved more complicated than expected, despite low 2018
comparatives. In a tense market impacted by the December strikes,
business activity was negatively affected by orders or restocking
purchases that were postponed by some retailers. The difficulties
were focused on SDA - despite the continued success of versatile
vacuum cleaners, automatic espresso coffee machines, garment
steamers, and Cake Factory - while our cookware sales benefitted
from very solid momentum in the fourth quarter, nurtured notably by
a loyalty program.
In Germany, 2019 revenue was down, penalized by the adjustment
of Groupe SEB Deutschland’s business practices to the Group’s
principles. That said, in a tense market, business remained stable
thanks to cookware, Optigrill, Cook4me…
In other European countries, the three last months showed
contrasted performances: sharp drop in the Netherlands on high
comparatives (LP in 2018), despite the strong rise in revenue of
vacuum cleaners and automatic espresso machines; flat in Spain,
notwithstanding buoyant sales in coffee partnerships and personal
care; growth in the United Kingdom as well as in Italy, where the
momentum was mainly fueled by linen care and Optigrill. Robust
growth in Belgium, thanks to a loyalty program featuring Lagostina
cookware.
OTHER EMEA COUNTRIES
Groupe SEB achieved a very good year in the region, with organic
sales growth of 12.4% (+10.7% in the fourth quarter), driven by
almost all countries.
Capitalizing on the sharp ramp-up in demand, the Group pursued
its vigorous development policy, combining solid product dynamic
(new launches, extension of the range), strong partnerships with
large key accounts, increased presence in e-commerce as well as the
development of Group Retail and WMF. Our progress materialized into
further market share gains in Eurasia.
While all product lines contributed to business momentum, the
main growth drivers were innovations and flagship products,
including versatile vacuum cleaners (Air Force Flex) and robots,
Optigrill, automatic espresso coffee machines (including the
Evidence model), garment steamers and IXEO range, and Ingenio
cookware.
Russia was the most powerful growth engine in the region, fueled
by all product categories, leading to strengthened leadership
position in small electrical appliances. Simultaneously, dynamic
remained outstanding in Central Europe, notably in Poland as well
as in Ukraine, where the Group became the leading player in
SDA.
In Turkey, in what remains a highly volatile environment, we
have been maintaining overall our market positions, primarily by
leveraging our successes in cookware (Titanium, Ingenio).
Nevertheless, undemanding 2018 comparatives allowed us to post
double-digit organic growth in the fourth quarter.
Finally, in the Middle-East, the Group restored growth in
Saudi-Arabia after two very tough years and has made further
inroads in Egypt.
NORTH AMERICA
Rising 2019 sales were bolstered by an overall favorable
monetary environment for the three currencies in the region since
the beginning of the year. Following decline in fourth quarter
sales (down 3.8% LFL), yearly organic growth stands at 2.9% with
contrasting situations across the three countries of the area.
In the United States, in a still tough retail environment,
business has been almost flat over the year, while down in the
fourth quarter, like-for-like. The upswing in revenue in linen care
was mainly driven by the enlarged distribution of Rowenta products,
initiated in the third quarter. Yet it failed to offset the drop in
cookware sales at year-end. However, over the year, in a difficult
market, the Group posted satisfactory performances, strengthening
its competitive positions in both cookware and linen care. Mention
should be made that the signing of an initial trade agreement with
China has partly alleviated the increases in customs tariffs
implemented since September for cookware and small electrical
appliances.
In Canada, as in the United States, the retail and consumption
context remained tense throughout the year. Nevertheless, sales
have been bolstered by the continuation of a specific deal
initiated in the third quarter.
In Mexico, the Group posted record sales in the fourth quarter,
nurtured by the core business as well as a loyalty program
(cookware and utensils) with one of our key accounts.
SOUTH AMERICA
As a reminder, the presentation of changes in sales in the
region is impacted by the recognition of tax receivables in Brazil,
amounting to €32 million in fourth-quarter 2018 and €8 million in
third-quarter 2019. Excluding these non-recurring items, organic
sales growth in South America would come out at 8.7% in the fourth
quarter and 8.3% for the full-year. On a reported basis, sales in
the area remain negatively impacted by the continued depreciation
of the Brazilian real and the Colombian and Argentinian pesos.
In Brazil, excluding the above-mentioned positive effect, the
Group achieved organic growth of almost 5% in the fourth quarter
and over 10% year-on-year. Over the three last months, business
dynamic was driven by cookware (with a good performance for
pressure cookers in particular), and by some electrical appliance
families, including oil-less fryers, grills, Dolce Gusto, washing
machines, and fans.
In Colombia, the Group ended the year with solid momentum,
fueled notably by cookware -thanks to strong marketing activation
in points of sales-, fans and the continued roll-out of oil-less
fryers.
CHINA
2019 was characterized by a more moderate Chinese economic
growth and the trade war with the United States.
In a context of slower consumption, Supor maintained solid sales
momentum against demanding comparatives: on a like-for-like basis,
sales rose 12.2% in full-year 2019 and 15.4% in the fourth quarter.
Last quarter’s dynamic can be attributed to sustained core business
and sell-in ahead of the Chinese New Year (25 January 2020). It
helped Supor to continue to outperform the market and reinforce its
competitive positions across the vast majority of product
lines.
This was the case in cookware and kitchen accessories, where
growth remained firm, primarily driven by woks (new models)
saucepans and isothermal mugs (further range extension and enlarged
product offering to attract new consumer targets).
This was also the case in small electrical appliances, where
Supor continued to gain market shares overall. The acceleration in
growth in the fourth quarter was fueled by electrical cooking, with
rice cookers, high-speed blenders, health pot kettles, grills, and
baking pans proving particularly buoyant. In new product
categories, ongoing brisk momentum stemmed mainly from garment
steamers, vacuum cleaners and air purifiers. In large kitchen
appliances, vigorous business activity was underpinned by very
rapid revenue development in water purifiers.
OTHER ASIAN COUNTRIES
In Asia excluding China, full-year revenue was slightly up
like-for-like, yet following a decline in sales in the fourth
quarter (down 2.6%, organically).
The Group posted a good year in Japan, with sales in yen
progressing solidly. However, as expected, business activity in the
fourth quarter slowed due to advance purchases prior to the
increase in VAT on October 1. Excluding this effect, performance
continued to be driven by flagship products (including cookware,
kettles, and garment steamers) and by the continued development of
the proprietary store network. At end-2019, following the opening
of two new T-Fal stores, the Group had a total of 39 stores in the
country.
In South Korea, revenue decreased in 2019 owing to a tough
consumer environment, marked by the trade dispute with Japan. The
Group nevertheless succeeded in stabilizing sales in the fourth
quarter on the back of firm business in cookware, vacuum cleaners,
and garment steamers, mainly via e-commerce.
In the other Asian countries, the situation was contrasted:
restored growth in Australia was confirmed, although business was
heavily penalized by fires in December; ongoing buoyant momentum in
Thailand; stepped-up development in Malaysia; mixed performances in
Singapore and Hong Kong, and marked sales decrease in
Vietnam...
COMMENTS ON PROFESSIONAL BUSINESS ACTIVITY
With organic growth of 12.1%, the Group’s professional business
posted another very dynamic year, even against high comparatives
(+14% in 2018). As a reminder, beyond this robust organic growth,
the business includes a €71 million contribution from Wilbur Curtis
in 2019, a US company specialized in professional filter coffee
machines, consolidated since February 8th, 2019. Its integration
leads to a reported sales growth of 25.9% over the year.
In Professional Coffee Machines (PCM), 2019 activities were
marked by a very different sales phasing compared to 2018. As a
matter of fact, deliveries of major contracts signed with fast-food
chains, coffee shops and local stores in the United States and Asia
were concentrated in the second half of 2018. The execution of
these contracts continued until June 2019. Consequently,
WMF-Schaerer coffee machine revenue grew strongly in the first half
of 2019, against regular 2018 comparatives, and increased at a more
modest pace in the second half, against demanding 2018
comparatives. Despite the non-repeat of these major deals, the
fourth quarter, up 7.8%, reflected brisk core business at the end
of the year.
At the same time, the integration of Wilbur Curtis continued,
materializing in operational terms. In 2019, the Group implemented
a new organization dedicated to the PCM business, Seb Professional,
in order to optimize its development strategy on the North American
market.
APPENDICE
REVENUE BY REGION – FOURTH QUARTER
Revenue in €M
Q4
2018
Q4
2019
Change 2019/2018
As reported
Like-for-like*
EMEA
Western Europe
Other countries
1,171
894
277
1,159
856
303
-1.0%
-4.2%
+9.5%
-1.1%
-4.8%
+10.7%
AMERICAS
North America
South America
314
190
124
285
190
95
-9.5%
-0.5%
-23.4%
-9.8%
-3.8%
-19.0%
ASIA
China
Other countries
523
362
161
586
423
163
+12.0%
+16.8%
+1.1%
+9.9%
+15.4%
-2.6%
TOTAL Consumer
2,008
2,030
+1.1%
+0.4%
Professional Business
176
210
+18.8%
+6.3%
GROUPE SEB
2,184
2,240
+2.5%
+0.9%
* Like-for-like: at constant exchange rates and scope Rounded
figures in €m % calculated on non-rounded figures
GLOSSAIRE
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
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.
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 Registration
Document filed with the Autorité des Marchés Financiers, the French
financial markets authority.
Conference call with management on January 22
at 6:00 p.m. CET
Numbers: From France: +33 (0) 1 72 72 74 03 -
PIN: 40864029# From other countries: +44 20 7194 3759 - PIN:
40864029
Listen to the audiocast and the presentation on
our website on January 22 from 9:00 p.m.: www.groupeseb.com or
click here
Next key dates - 2020
February 27 | before market opens
2019 sales and results
April 27 | after market closes
Q1 2020 sales and financial data
May 19 | 3:00 p.m.
Annual General Meeting
July 23 | before market opens
H1 2020 sales and results
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 30 top brands including Tefal, Seb,
Rowenta, Moulinex, Krups, Lagostina, All-Clad, WMF, Emsa, Supor,
marketed through multi-format retailing. Selling more than 350
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 €7.3 billion in 2019 and has more than 34,000 employees
worldwide.
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version on businesswire.com: https://www.businesswire.com/news/home/20200122005617/en/
Investor/Analyst Relations
Groupe SEB Financial Communication and Investor Relations
Isabelle Posth Raphaël Hoffstetter comfin@groupeseb.com Phone:+33
(0) 4 72 18 16 04
Media Relations
Groupe SEB Corporate Communication Dept Cathy Pianon
com@groupeseb.com Phone: . +
33 (0) 6 33 13 02 00
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Phone:+33 (0) 1 53 70 74 70
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