Groupe SEB Reports Financial Results for First Half Of 2014

Groupe SEB reported revenue of €1,827 million in the first half of 2014, a 0.5% decline as reported. According to the company, results were adversely affected by currency effect, as the company expected. Organic revenue growth for Groupe SEB was 4.7%.

While organic growth in revenue was generally strong, performance nonetheless varied from one region and one product category to another, the main growth drivers being fans, vacuum cleaners, electrical cooking, linen care and cookware.

 “Groupe SEB’s first-half performance was in line with forecast, with sustained organic growth in revenue, led by innovation and international expansion, and operating result from activity stable on a like-for-like basis but sharply down after taking into account the currency effect. Indeed, as expected, the sharp declines in many currencies against the euro significantly impacted results,” Thierry de La Tour d’Artaise, chairman and CEO of Groupe SEB, said. “The Group’s first-half activity was split between markets that were rather better than expected, particularly in Europe and China, and an environment that was much tougher than expected in Russia and Japan.

The steep fall in net profit is not relevant given the limited contribution of the first-half to annual results and should not be extrapolated over the full-year.”

According to the company, the first half was shaped by a still strained and uncertain environment that saw widely divergent market situations, a highly competitive, promotion-driven context and ongoing inventory drawdowns on the part of retailers.

Following a solid start to the year, growth continued to trend positively in the second quarter although organic growth was more moderate, at 3.2%.The currency impact on revenue for the first six months of 2014 amounted to a negative €107 million (versus a negative €10 million in first-half 2013) reflecting the decline of many currencies against the euro over the period.

First-half 2014 operating result from activity amounted to €91 million, in line with forecast. It included a €45-million negative currency effect due mainly to the decline of the yen, rouble, real and yuan against the euro as well as to the €2-million negative impact of changes in the scope of consolidation. Like-for-like, first-half 2014 operating result from activity totalled €138 million, virtually unchanged from the €137 million recorded in the first six months of 2013.

“These results are in line with our road map and the outlook given at the end of the first quarter. In a complicated environment, we have stepped up initiatives to improve our operations while ensuring strict control over costs. We are also maintaining our investments in the product families and the countries that represent our growth drivers for the future,” de La Tour d’Artaise continued. ”For the coming months, we anticipate that the environment will be slightly more favourable in Russia and Japan and that the pace of growth will pick up in France and the United States.”