ECULLY, France— Groupe SEB reported on Thursday 25, 2024, its first-quarter 2024 sales and financial data. In the first quarter of 2024, the Group generated sales of €1,893m, up 7.3% LFL and 3.9% on a reported basis. The first three months saw continued currency headwinds with a negative effect of -€75m, or -4% of sales.
However, in the months ahead, this trend is expected to ease. The scope effect was a positive 0.7%, or €13m. The latter includes the integration of La San Marco, Pacojet and Forge Adour.
Stanislas de Gramont, Chief Executive Officer of Groupe SEB, stated:
“2024 started as we expected, with robust organic sales growth, once more surpassing 5% in this first quarter. The Small Domestic Equipment market again showed resilience since the beginning of the year, with our Consumer business continuing to outperform the market. This trend is supported by the roll-out of product innovations in multiple categories, driving our momentum in a growing number of countries.
Over the same period, our Professional business turned in another excellent performance, notably propelled by the delivery of several large contracts. Factoring in these solid first-quarter sales and a significantly improved operating margin, we reiterate our outlook for 2024, particularly to achieve an operating margin close to 10%”
In early 2024, in a gradually recovering consumer environment, the Small Domestic Equipment market again demonstrated overall resilience.
In this context, Consumer sales outperformed the market, posting solid organic growth of 5.8% (+1.4% on a reported basis), despite an unfavorable comparison base for loyalty programs in Europe at the start of 2023.
Growth was spread out more evenly across regions and fueled by effective commercial execution, new products roll-out, and the vigorous performance of several ranges including oil-less fryers, versatile vacuum cleaners, full-auto coffee machines, steam generators, garment steamers, and fans.
Professional sales for the quarter totaled €258m, representing an increase of 18.5% LFL (+23.3% on a reported basis), bolstered by the delivery of several large contracts, particularly in China.
This first-quarter performance is even more remarkable when viewed on the basis of a demanding comparison base (Q1 2023, +29% LFL).
This business encompasses Professional Coffee, which accounts for more than 90% of sales (including the WMF, Schaerer, Wilbur Curtis and La San Marco brands), hotel equipment, Krampouz, Zummo and Pacojet.
Business was particularly strong in China, with first-quarter sales more than doubling. The Group continued to roll-out large contracts while expanding its reach with a wider customer base, including tea chains. Meanwhile, Germany and Italy made a particularly good start of the year 2024.
The Group stepped up its international expansion in Mexico by signing a contract with a major convenience store chain, in Taiwan, through the delivery of a large-scale order, in Malaysia and in Eastern Europe.
This enhanced performance comes in a context where the roll-out phasing of large contracts is favorable in the first half of 2024.
As announced, in April the Group finalized the acquisition of Sofilac, a French group specializing in the design, manufacture and marketing of high-end professional and semi-professional cooking equipment. As stated previously, with this acquisition, the Group reaffirms its aim to actively develop in the professional culinary segment, with the overarching ambition to become a reference player in professional equipment.
Outlook
On these solid results, Groupe SEB confirms its ambitions for 2024, as announced during its 2023 Full-Year Results release:
- For the Consumer business, a return to more widespread sales growth in mature countries, with a gradual year-round recovery in China and continued good dynamic in emerging markets amidst a still penalizing currency environment;
- Continued growth in its Professional business on a high comparison basis; and
- An operating margin expected to be close to 10%.
