SEB S.A. Better Living
Press release
October 26, 2021 - 5:40 p.m.
Nine-month 2021 Sales and Financial Data
1
RECORD PERFORMANCES AT END-SEPTEMBER
2021 ASSUMPTIONS REVISED UPWARDS
- Nine-monthsales: €5,570m, +18.2% as reported and +18.8% LFL*
- Third-quartersales: €1,961m, +9.1% as reported and +6.4% LFL
- Nine-monthOperating Result from Activity (ORfA): €528m, +62.8% vs. 2020
- Net debt: €1,951m, -€20m vs. 30/09/2020
Full-year 2021 assumptions revised upwards
- Reported sales growth expected around 14% (vs. above 10% previously)
- ORfA margin should be close to 10%, unchanged vs our communication of end-July, with headwinds (raw materials, components, freight and FX) now estimated at around €300m on the Operating Result from Activity (vs. "more than €250m" at end-July).
Statement by T. de La Tour d'Artaise, Chairman and CEO of Groupe SEB
"The performance at the end of September is a clear evidence of the strength and the pertinence of our strategic model. Our Consumer business, vigorous over the first nine months, continues to be driven by sustained demand while the rebound of our Professional division, initiated in the second quarter, has been confirmed.
This strong momentum leads us to revise upwards our assumption of reported sales growth for 2021, which we now expect around 14%, and to confirm that the operating margin for the full year 2021 should be close to 10%."
*Like-for-like: at constant exchange rates and scope of consolidation
ALL-CLAD I ARNO I ASIAVINA I CALOR I CLOCK I EMSA I ESTERAS I HEPP I IMUSA I KAISER I KRAMPOUZ I KRUPS I LAGOSTINA I MAHARAJA WHITELINE I MIRRO MOULINEX I OBH NORDICA I PANEX I ROCHEDO I ROWENTA I SAMURAI I SCHAERER I SEB I SILIT I SUPOR I TEFAL I T-FAL I WEAREVER I WILBUR CURTIS | WMF
GENERAL COMMENTS ON GROUP SALES
With the general environment still disrupted by the effects of the COVID-19 crisis and unprecedented supply-chain tensions, Groupe SEB achieved record-high performances for the 9-month period ending September 2021. Our sales came out at €5,570m at end-September,up 18.2% from 2020, and consist of a like-for-likegrowth of 18.8% (+€884m), a currency effect of -1.9% (-€87m) and a scope effect of +1.3% (+€62m, related to StoreBound). This robust momentum was fueled both by the Consumer and Professional businesses.
9-monthsales achieved a solid revenue growth of nearly 9% on a reported basis compared to 2019, which stands as a more normal base of comparison than 2020.
The Consumer business reported a c. 20% LFL growth over the first nine months of 2021 vs. 2020 (+13% vs. 2019 on a reported basis). Fueled by all the geographies and products categories, this breaks
2 down as follows:
- A highly vigorous first half, with growth of nearly 30%, underpinned by buoyant demand and favorable comparatives;
- Continued growth in the third quarter, despite very demanding 2020 comparatives, with sales up 7.2% on a reported basis and 4.4% LFL vs. 2020 and up 14% vs. 2019 on a reported basis.
For the period as a whole, sustained demand for small domestic appliances was reflected in reduced promotional activity, conducive to high-quality sales. While e-commerce has been the main growth driver over the past 18 months, the recovery of physical retail since the second quarter has bolstered business activity in the vast majority of markets.
In the first nine months of the year, the Professional business returned to growth, though admittedly against low comparatives. Growth totaled 8.7% LFL following a vigorous third quarter (+35%), confirming the sharp rebound initiated in the second quarter. Strong momentum was driven both by resuming core business (coffee machines and service) and the roll-out of new deals, particularly in the United Kingdom and in the United States.
DETAIL OF REVENUE BY REGION
Revenue in €m | 9 months | 9 months | Change 2021/2020 | Q3 Change 2021/2020 | ||||||||
2020 | 2021 | As reported | Like-for-like* | As reported | Like-for-like | * | ||||||
EMEA | 2,118 | 2,597 | +22.7% | +25.0% | +10.6% | +10.0% | ||||||
Western Europe | 1,530 | 1,843 | +20.5% | +20.3% | +10.2% | +9.8% | ||||||
Other countries | 588 | 755 | +28.4% | +37.1% | +11.8% | +10.5% | ||||||
AMERICAS | 584 | 773 | +32.3% | +27.5% | +2.3% | -3.5% | ||||||
North America | 417 | 550 | +32.0% | +21.0% | -2.7% | -9.0% | ||||||
South America | 167 | 223 | +33.1% | +43.6% | +15.7% | +11.0% | ||||||
ASIA | 1,582 | 1,745 | +10.3% | +9.9% | +4.4% | -0.2% | ||||||
China | 1,196 | 1,328 | +11.1% | +9.4% | +7.2% | +0.6% | ||||||
Other countries | 386 | 417 | +7.8% | +11.7% | -3.6% | -2.6% | ||||||
TOTAL Consumer | 4,284 | 5,115 | +19.4% | +19.8% | +7.2% | +4.4% | ||||||
Professional business | 428 | 456 | +6.4% | +8.7% | +35.4% | +34.9% | ||||||
GROUPE SEB | 4,712 | 5,570 | +18.2% | +18.8% | +9.1% | +6.4% | ||||||
* Like-for-like: at constant exchange rates and scope | Rounded figures in €m | % calculated | in non-rounded | figures |
ALL-CLAD I ARNO I ASIAVINA I CALOR I CLOCK I EMSA I ESTERAS I HEPP I IMUSA I KAISER I KRAMPOUZ I KRUPS I LAGOSTINA I MAHARAJA WHITELINE I MIRRO MOULINEX I OBH NORDICA I PANEX I ROCHEDO I ROWENTA I SAMURAI I SCHAERER I SEB I SILIT I SUPOR I TEFAL I T-FAL I WEAREVER I WILBUR CURTIS | WMF
COMMENTS ON CONSUMER BUSINESS BY REGION
Revenue in €m | 9 months | 9 months | Change 2021/2020 | Q3 Change 2021/2020 | |||||||||
2020 | 2021 | As reported | Like-for-like* | As reported | Like-for-like | * | |||||||
EMEA | 2,118 | 2,597 | +22.7% | +25.0% | +10.6% | +10.0% | |||||||
Western Europe | 1,530 | 1,843 | +20.5% | +20.3% | +10.2% | +9.8% | |||||||
Other countries | 588 | 755 | +28.4% | +37.1% | +11.8% | +10.5% | |||||||
WESTERN EUROPE
The Group achieved record-high performances over the 9-month period. Consistent with the first half of the year, third-quarter sales grew strongly (by around 10%) despite demanding 2020 comparatives. The continued robust e-commerce momentum (online sales specialists, click&mortar, and direct-to-consumer) has been combined with a solid performance of the offline channel. All areas have achieved sales above 2019 levels.
In France, in a buoyant market, the excellent growth achieved at end-September was fueled by core business as well as loyalty programs with some mass retailers. Third quarter has remained well-oriented, with sales substantially higher than in 2019. The dynamic has been driven by flagship categories such as cookware, electrical cooking, and home care.
Substantial growth in Germany was underpinned by the same factors. A tonic core business, bolstered by our flagship products such as Optigrill, oil-less fryers and the WMF ranges, helped by the reopening of our retail network, a major loyalty program in cookware, and the strength of online sales.
In other European markets, the Group achieved strong and broad-based performances in the third quarter thanks to solid growth engines such as cookware and electrical cooking, including WMF products, and home cleaning.
OTHER EMEA COUNTRIES
3 | |
In other EMEA countries, sales at end September | |
have been up 37% on an organic basis. After an | |
exceptional first half of the year, dynamic | |
remained strong and widespread in the region in | |
the third quarter (+10.5% LFL). | |
In markets where growth is "normalizing" after the | |
peaks of the last few months, and despite supply- | |
chain disruptions, the Group significantly | |
overperformed, leveraging the main market | |
catalyzers. It continued to make headway in e- | |
commerce, which now accounts for over 40% of | |
the market, reinforcing its overall positions with | |
electro-specialists and pure players, notably | |
regional. At the same time, it continued to roll out | |
its direct-to-consumer sales offering, both offline | |
and online. | |
While organic growth was temporarily more | |
moderate in Russia and Turkey in the third | |
quarter, all the other countries contributed to the | |
strength of sales, with a special mention this | |
quarter going to Central Europe, Poland, Ukraine, | |
Romania, and Egypt. | |
In terms of product lines, the main drivers | |
remained vacuum cleaners (versatile, robot), | |
electrical cooking (grills, oil-less deep fryers), | |
cookware (Titanium, Ingenio), and automatic | |
espresso machines. Also of note was WMF's | |
continued development in the region. |
ALL-CLAD I ARNO I ASIAVINA I CALOR I CLOCK I EMSA I ESTERAS I HEPP I IMUSA I KAISER I KRAMPOUZ I KRUPS I LAGOSTINA I MAHARAJA WHITELINE I MIRRO MOULINEX I OBH NORDICA I PANEX I ROCHEDO I ROWENTA I SAMURAI I SCHAERER I SEB I SILIT I SUPOR I TEFAL I T-FAL I WEAREVER I WILBUR CURTIS | WMF
Revenue in €m | 9 months | 9 months | Change 2021/2020 | Q3 Change 2021/2020 | |||||||||||
2020 | 2021 | As reported | Like-for-like* | As reported | Like-for-like | * | |||||||||
AMERICAS | 584 | 773 | +32.3% | +27.5% | +2.3% | -3.5% | |||||||||
North America | 417 | 550 | +32.0% | +21.0% | -2.7% | -9.0% | |||||||||
South America | 167 | 223 | +33.1% | +43.6% | +15.7% | +11.0% | |||||||||
NORTH AMERICA
4 At 550 M€, sales at September 30 include the integration of StoreBound as well as negative currency effects. On a reported basis, sales have been strongly up: +32% vs. 2020 and +38% vs. 2019. Organic growth reached 21% for the 9 months.
After an extremely robust first half (+67%, +51% LFL), business activity slowed in the third quarter, owing to:
- more demanding comparatives in the USA as the market had been supported by unrenewed government consumption incentives in 2020 ;
- the temporary closure of our plant in Vietnam which penalized business activity for T-Fal cookware
However, revenue growth in the United States is excellent compared with 2019, with quarterly sales up by 35% and 9-month sales by almost 57%. Performance was driven by two major growth engines: cookware (ongoing strong momentum for All-Clad and Imusa) and electrical cooking, propelled by StoreBound, which posted a very good third quarter despite high 2020 comparatives.
Outside the United States, performances were contrasted. In Canada, our sales continue to suffer from sluggish market demand and ongoing increased selection in listings by some of our customers. Mexico, meanwhile, posted very robust growth both on a 9-month and on a third-quarter basis. Standout product lines included electrical cooking (oil-less fryers) and cookware.
SOUTH AMERICA
In a persistently uncertain economic environment, our sales in South America increased 11% LFL and 15.7% on a reported basis in the third quarter. Sales are now back to 2019 levels. While the region's main currencies (Brazilian real, Colombian and Argentine pesos) stabilized over the summer, the currency impact remained negative over the 9-month period, compared with the previous year.
In Brazil, sales were stable in the third quarter in a complicated environment. This includes price increases implemented in response to unfavorable currency impacts and supply chain tensions. Cookware and electrical cooking (oil- less deep fryers) held up strongly after a fast development since 2020. As for Food preparation, it has been impacted by a difficult 2020 base effect, but sales of the product category grew relative to 2019.
In Colombia, growth pace has remained very positive with strong performance achieved both on a 9-month and on a third-quarter basis. This
reflects our continuous commercial improvements as well as our industrial competitiveness. Electrical cooking remains a major driver, underpinned by the roll-out of oilless deep fryers, and the blenders. Finally, fan sales benefited from recent product launches, particularly the Silence Force range.
ALL-CLAD I ARNO I ASIAVINA I CALOR I CLOCK I EMSA I ESTERAS I HEPP I IMUSA I KAISER I KRAMPOUZ I KRUPS I LAGOSTINA I MAHARAJA WHITELINE I MIRRO MOULINEX I OBH NORDICA I PANEX I ROCHEDO I ROWENTA I SAMURAI I SCHAERER I SEB I SILIT I SUPOR I TEFAL I T-FAL I WEAREVER I WILBUR CURTIS | WMF
Revenue in €m | 9 months | 9 months | Change 2021/2020 | Q3 Change 2021/2020 | |||||||||||
2020 | 2021 | As reported | Like-for-like* | As reported | Like-for-like | * | |||||||||
ASIA | 1,582 | 1,745 | +10.3% | +9.9% | +4.4% | -0.2% | |||||||||
China | 1,196 | 1,328 | +11.1% | +9.4% | +7.2% | +0.6% | |||||||||
Other countries | 386 | 417 | +7.8% | +11.7% | -3.6% | -2.6% | |||||||||
CHINA
At September 30, organic sales growth in China stood at 9.4% following a third-quarter gain of 0.6% LFL compared with 2020 and 7.3% as reported vs 2019. These very satisfactory performances were achieved in a context of slower demand and still weak store footfall.
As such, Supor continued to strengthen its positions in the market, notably by innovating and adapting its product offering. The better trend in sales also stemmed from the retail diversification, notably through Supor's ongoing development of direct-to-consumer online sales, and through enhanced presence on new, fast- growing platforms.
If the increased weight of e-commerce has a negative impact on prices, and hence on sales, Supor's significant progress is materializing in an improvement of the online operating margin, which now exceeds the offline profitability.
In cookware, this strategy of accelerating the transition to DTC online sales has slightly penalized third-quartersell-in.
In contrast, in small electrical appliances, the transformation of the model is way more advanced. Third quarter revenue was up, driven by electrical cooking ("traditional" products refreshed by innovation, emerging categories such as oil-less deep fryers, etc.), beverage preparation, and home cleaning, boosted by the launch of new vacuum cleaners.
OTHER ASIAN COUNTRIES | 5 |
At September 30, sales growth in other Asian | |
countries has been solid, at +11.7%, fueled by | |
all the countries in the region. Third-quarter sales | |
have been slightly down yoy due to a higher | |
2020 comparison base and new restrictive | |
measures in some markets (Australia, Thailand, | |
Singapore, …). | |
In Japan, our sales dipped slightly in the third | |
quarter after double-digit growth in the first half. | |
The decrease mainly resulted from the ongoing | |
state of health emergency (reintroduced in July), | |
which negatively impacted physical retail, | |
including our retail network. However, our sales | |
in cookware and kitchenware grew over the | |
quarter (notably thanks to the new G6 range), | |
with a significant improvement from one month | |
to the next. | |
In South Korea, the slight decrease in sales in | |
the third quarter resulted primarily from the | |
partial closure of Ningbo port in China, which | |
disrupted our supply at the end of August. | |
Yet, the Group succeeded in reinforcing its | |
positions in its largest markets (Japan, South | |
Korea, Australia, …). | |
In parallel, excellent performances were posted | |
in Vietnam, Malaysia (driven by e-commerce) | |
and Taiwan (WMF, cookware, and new listings | |
in electrical cooking and food preparation). |
ALL-CLAD I ARNO I ASIAVINA I CALOR I CLOCK I EMSA I ESTERAS I HEPP I IMUSA I KAISER I KRAMPOUZ I KRUPS I LAGOSTINA I MAHARAJA WHITELINE I MIRRO MOULINEX I OBH NORDICA I PANEX I ROCHEDO I ROWENTA I SAMURAI I SCHAERER I SEB I SILIT I SUPOR I TEFAL I T-FAL I WEAREVER I WILBUR CURTIS | WMF
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SEB SA published this content on 26 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 October 2021 15:55:04 UTC.
