After acquiring kitchenware vendor Emsa and cookware and coffeemaker supplier WMF during the first half of the year, Groupe SEB chairman and CEO, Thierry de La Tour d’Artaise, called the first half of 2016, “strong on strategic advances and excellent in terms of performance.”
However, in North America, Groupe SEB sales stalled slightly in the first half of the year. According to the company’s financial report, sales at the end of June in North America remained down 9.5% like-for-like, given high comparable sales in first half of 2015. Market performance varied substantially across countries. In the U.S., second quarter sales were practically stable in dollars, according to Groupe SEB.
T-fal’s activity was challenged while Imusa benefited from new product introductions and successfully pursued its gradual rollout in small electric appliances. Rowenta regained momentum with the introduction of new iron models and further progress in garment steamers. All-Clad continued its growth trend, thanks in particular to sustained growth in e-commerce, according to the company.
Overall, at the end of the second half, the company’s net profit stood at approximately $69 million, which is up 15%, the company said. In addition, total sales for Groupe SEB were reported at $2.3 billion, up 2.4% and up 6% on a comparable like for like basis. The second quarter was up 6.9%.
“The acquisition of Emsa will enable us to pursue our development in the very large and highly promising market of kitchen utensils and accessories. With the WMF acquisition project, we enter the very attractive professional coffee machine market and we strengthen our positions in Germany. These are important steps for our future development and we are pleased to see them become a reality. In operational terms, the group posted a high-quality first half-year, aligning robust organic growth in sales, record operating results from activity, and excellent cash generation. The strength of these performances puts us in a good position to achieve a strong 2016 year while remaining vigilant to the changes in some markets,” stated de La Tour d’Artaise.
For the second half of the year, the company said it expects business to stay relatively stable, targeting organic sales growth for full year 2016 above 5% and an increase in operating result above 10%.