Groupe SEB Releases First-Quarter 2019 Sales And Financial Data
Source Groupe SEB
Groupe SEB reported sales of €1,722 million in first quarter 2019, up 10.4%, including organic growth of 8.5%, a limited positive currency effect of 0.8% (€13 million) and a scope effect of +1.1% (+€17 million). The latter notably comprises the consolidation for a two-month period of the recently acquired US company, Wilbur Curtis, specialized in professional filter coffee, which contributed €12 million to sales.
Relative to the high comparatives, organic growth of 8.5% stands as a very robust performance, which can be broken down as follows:
- Consumer business, +7.0%: growth fueled by all geographies, by all product lines (excluding linen care), and by a higher volume of loyalty programs than in first-quarter 2018;
- Professional (coffee machines and hotel equipment), +24.4%: growth driven by Professional coffee, with firm momentum in “day-to-day” business and a strong boost from major deals in the United States and China.
Operating Result from Activity (ORfA) totaled €138 million in the first quarter, up 12% on first-quarter 2018. The total includes a currency effect of -€7 million as well as scope (Wilbur Curtis) and method (IFRS 16) effects of +€5 million. ORfA was bolstered by brisk business activity despite the environment of intense competition and promotional activity. At this point, it does not include the accounting entries for the initial consolidation of Wilbur Curtis (purchase price allocation).
Net financial debt stood at €2,214 million at March 31, 2019, compared with €1,578 million at end-2018. The increase mainly stems from the recognition of IFRS 16 debt (€351 million) and the acquisition of Wilbur Curtis in February.
