• Total Revenue: EUR8.266 billion, reported growth of 3.2%.
• Organic Growth: 5% organic growth.
• Operating Profit: EUR802 million, a 10.5% increase from last year.
• Operating Margin: 9.7%.
• Net Profit (Group Share): EUR230 million.
• Adjusted Net Profit: EUR422 million, adjusted for a fine from French competition authorities.
• Net Debt: EUR1.9 billion, with a stable leverage of 1.8 times EBITDA.
• Dividend Proposal: EUR2.8 per share, a 6.9% increase from last year.
• Consumer Business Growth: 9% growth outside of China, 6% including China.
• Professional Business Growth: 7% growth in recurring activities.
• EMEA Organic Growth: 4.8% in Western Europe, 22.5% in Central and Eastern Europe.
• Americas Growth: 9.4% growth.
• Asia Performance: Flat overall, with 2% growth excluding China.
• Free Cash Flow: EUR260 million.
• EBITDA: Over EUR1 billion.
• Cash on Balance Sheet: In excess of EUR1 billion.
• Available Liquidity: EUR2.5 billion.

• Warning! GuruFocus has detected 3 Warning Signs with SEBYF.

Release Date: February 27, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• SEB SA (SEBYF) achieved a robust 5% organic growth, reaching a record high of EUR8.266 billion in revenue.
• The company reported a 10.5% increase in operating profit, leading to an operating margin of 9.7%.
• SEB SA (SEBYF) expanded its geographical coverage and product offerings, including a joint venture in Saudi Arabia and increased production of vacuum cleaners in France.
• The company launched an employee share ownership program with a high subscription rate of 28%.
• SEB SA (SEBYF) confirmed its ESG 2030 strategy, validated by SBTi, and launched a closed-loop aluminum pans recycling program in France.

Negative Points

• The company faced a negative currency effect of EUR205 million, impacting revenue growth.
• SEB SA (SEBYF) experienced a slight increase in main debt to EUR1.9 billion, with a stable leverage of 1.8 times EBITDA.
• The company had to adjust its net profit due to a fine from French competition authorities, impacting financial results.
• Working capital was affected by the Red Sea crisis, leading to higher stock levels and receivables.
• Financial expenses increased due to refinancing impacts, with expectations of further increases in 2025.

Q & A Highlights

Q: Could you provide an order of magnitude for the price impact on the 2024 results, and are there any specific headwinds or tailwinds for 2025? A: We don't provide precise breakdowns, but we had a positive mix effect and a slightly higher price effect due to decreased costs of goods sold. In 2025, we expect a stronger proportion of positive mix effect as cost deflation is behind us. For 2025, we anticipate stable costs, with potential currency impacts on margins. However, we expect sales and profit growth, maintaining our trajectory towards an 11% operating margin in the medium term. - Olivier Casanova, CFO

Q: How should we think about financial expenses and working capital changes for 2025? A: Financial expenses increased due to refinancing at higher rates, and we expect a slight further increase in 2025. Regarding working capital, it's too early to predict a reversal due to ongoing supply chain uncertainties. We don't anticipate a strong benefit from a reversal in 2025. - Olivier Casanova, CFO

Q: What are the current trading trends in China, especially with government incentives for rice cookers? A: It's early to quote changes in trends, but we have more favorable comps in 2025. Government measures are in place, and while nothing material has changed yet, the sentiment is more positive than a few months ago. The incentives could benefit SEB, given our leadership in rice cookers in China. - Stanislas De Gramont, CEO

Q: Can you comment on the sustainability of positive trends in the small domestic equipment markets given the macro and geopolitical context? A: Yes, the trends are sustainable. Despite challenging years, consumers continue to equip themselves with small domestic equipment due to their daily utility and accessible cost. We see no alarming signs that would undermine this growth. - Stanislas De Gramont, CEO

Q: Do you have visibility on the recovery of big deals in the Professional Coffee division, and will recent acquisitions impact 2025 earnings? A: We have a regular flow of big deals, but nothing specific to share at this stage. The underlying business is growing, and we expect continued growth. Recent acquisitions will contribute to growth and profit generation over time, but they are not expected to have a material impact on 2025 earnings. - Stanislas De Gramont, CEO and Olivier Casanova, CFO

For the complete transcript of the earnings call, please refer to the full earnings call transcript.