MILAN – Groupe Seb today published full-year results for 2024 showing a sharp fall in the operating profit due to the the provision for the fine imposed by the French Competition Authority explains this decrease. Excluding the impact of this provision, the Group’s adjusted net profit amounts to €422m, showing an annual increase of 9.3%. Groupe SEB achieved sales of €8,266m in 2024, up 5.0% LFL (and by 3.2% on a reported basis).
The currency effect, although still present with a negative impact of 2.6 points over 12 months (-€205m), gradually eased off toward the end of the year (-€38m in the fourth quarter). Additionally, the revenue includes a scope effect of +0.8% linked to the acquisitions of La San Marco, Pacojet, Forge Adour and Sofilac.
The Consumer business reported a robust dynamic in 2024, in overall buoyant markets driven by innovation. It achieved strong organic sales growth of 6%, or 9% excluding China, despite a still complex geopolitical and macroeconomic environment.
Over the year, the Group confirmed its return to solid growth in Western Europe and North America, while continuing its double-digit expansion in Eastern Europe and South America. In China, despite a slight decline in annual sales, Supor continued to gain market share, in a still-weak environment. In Asia excluding China, sales posted a slight increase over the year.
The Professional business experienced a year of consolidation with a decline in organic sales of 4.5%, on the back of an exceptional 2023 (+27% LFL). 2024 remains the second-best year on record in terms of sales for Professional Coffee, despite fewer deliveries under large deals. Core business nevertheless performed well, with organic growth of around 7% over the year. Professional Coffee, which accounts for more than 90% of sales (including the WMF, a market leader in the professional fully automatic coffee machine sector, Schaerer, Wilbur Curtis and La San Marco brands), hotel equipment, Krampouz, Zummo and Pacojet
Operating Result from Activity (ORfA)
In 2024, the Group achieved an ORfA of €802m, up 10.5% compared to 2023 (€726m). The Operating margin thus stood at 9.7% of sales, compared to 9.1% in 2023. The LFL increase in ORfA versus 2023 is due to the following factors:
- a positive volume effect of €169m, due to the good volume momentum in the Consumer business,
- a decline in the cost of sales by €135m: effect of cost reductions in 2023, new gains in 2024 and a better industrial absorption,
- an unfavorable price-mix effect of -€20m reflecting the enriched product mix, driven by innovation, and also the price reinvestments intended to support sales momentum, and made possible by the decline in cost of sales,
- a €62m increase in investment in growth drivers, sustaining growth through enhanced innovation and activation,
- a slight rise of €34m in sales and marketing expenses, combining strengthened commercial actions and stability in administrative expenses.
These changes are accompanied by negative currency effects of -€120m, concentrated on long currencies, and largely offset by price effects.
Operating Profit
The Operating profit stands at €540m, compared with €667m in 2023. It includes a profit-sharing expense of -€33m (compared with -€24m in 2023), along with increases in other income and expenses, reaching -€229m. This latter amount primarily includes a provision for risk covering the full amount of the fine imposed by the French Competition Authority (-€189.5m). The Group has decided to appeal to Paris Appeal Court, for the decision to be annulled.
The 2024 financial result amounts to -€120m, up on 2023 (-€81m), due to increased financial expenses related to refinancings carried out by the Group in 2024.
The tax expense is €138m, with an effective tax rate rising from 25.1% in 2023 to 32.7% in 2024 (22.6% corrected by the impact of the provision for the fine). The charge relating to non-controlling interests (mainly Supor) is slightly down at -€51m (compared to -€53m in 2023).
Groupe Seb ‘s net profit is €232m, vs. €386m in 2023. As for the Operating profit, the provision for the fine imposed by the French Competition Authority explains this decrease. Excluding the impact of this provision, the Group’s adjusted net profit amounts to €422m, showing an annual increase of 9.3%.
Groupe Seb: Balance Sheet and Cash Flow
As of December 31, 2024, consolidated shareholders’ equity totaled €3,540m, up compared to the end of 2023 (€3,461m).
Net debt as of December 31, 2024 reached €1,926m, increasing by €157m (including €311m in IFRS 16 debt). This evolution can be explained by:
- a free cash flow generation of €260m in 2024, lower than the exceptional level of 2023 (€805m), including mainly:
(i) an increase in operating working capital requirements by €234m. After reaching a low point at the end of 2023 with 14.6% of sales, it settled at 16.8% of sales at the end of 2024 due to increased inventories related to persistent Red Sea disruptions (impact of approximately +1 point on the WCR as a percentage of sales), and phasing and geographic mix effects on trade receivables;
(ii) and an increase in net finance costs. - the inclusion of acquisitions for €139m (including Sofilac and SEB Alliance investments), dividends paid and share buybacks.
With an adjusted EBITDA up by 5.8% in 2024 at €1,042m, the net debt/adjusted EBITDA ratio is thus stable at 1.8x (1.6x excluding IFRS 16 and M&A).
Dividend
Meeting on February 26, 2025, the Board of Directors proposed the distribution of a dividend per share of €2.80 in respect of the financial year 2024, an increase of 6.9% compared to the dividend paid in 2024 in respect of the financial year 2023.
For shareholders having held registered shares for more than two years, the dividend will be increased by a loyalty premium of 10%, taking the total dividend to €3.08 per share (for holdings below 0.5% of the capital for a single shareholder).
The dividend amount will be submitted to the Group’s shareholders for a vote at the Annual General Meeting to be held on May 20, 2025, with the coupon detachment date set at June 3, 2025 and the dividend payment date at June 5, 2025.
Acquisition
As announced on January 22nd, the Group continues to strengthen its strategic position in Professional Culinary in 2025, with the acquisition of La Brigade de Buyer, which brings together the De Buyer, Sabatier and 32 Dumas brands, symbols of excellence in cookware and cutlery. La Brigade de Buyer had annual sales of €66m in 2024, half of which were generated internationally.
Groupe Seb: Outlook
2024 posted a solid performance. Growth in the Consumer business remained regular and steady, while core business in Professional displayed a good momentum, beyond the calendar effect related to large deals. Moreover, the ORfA showed marked increase, confirming the robustness of the Group’s model.
In this context, the Group approaches 2025 with confidence and determination, ready to continue along this trajectory. The geopolitical and macroeconomic environment remains uncertain, and seasonality of business will continue to concentrate results towards the end of the financial year. However, our end markets should remain buoyant overall, with catalysts linked to our good product launch dynamic.
The Group thus anticipates another year of organic sales growth in 2025 and further increase in Operating Result from Activity.
