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SEB's performance is still good in 2018. On Wednesday, the French small appliance giant raised its annual sales target, boosted by better-than-expected sales growth in the second quarter, thanks in particular to China and its EMEA zone (Europe, Africa and the Middle East).
The organic sales growth (at constant exchange rates and perimeter) "should exceed 7%" this year, said SEB in the release of its half-year results, whereas it previously predicted growth "above 5%."
The group however left unchanged its objective of operating profit of activity, planned in progression of more than 5% this year , "On the basis of the current level of exchange rates, more unfavorable than expected", and excluding non – recurring impacts related to the purchase price of German WMF last year.
Printed by hine
For the first half of the year, sales exceeded € 3 billion, up 2.9% (+ 7.4% organic). For the second quarter alone, they reached nearly 1.47 billion euros (+ 3.7% and + 7.3% in organic terms), exceeding the expectations of consensus badysts Factset, which forecast organic growth. only 6.5%.
In the first half of the year "the consumer business was very tonic, driven by China and EMEA", said SEB CEO Thierry de La Tour d'Artaise
Despite persistent difficulties in North America and Latin America, "the prospects are buoyant" in other major markets of the group, the CEO also estimated.
Heavy debt
In the end, the group's net profit was 91.1 million euros in the first half, up 9.5% year-on-year, despite a slight decline in operating income from activity (-2, 8% to 208 million euros), affected by a negative currency effect.
Group net indebtedness increased by the end of June, exceeding EUR 2 billion, ie 300 million more than at the end of March. Nevertheless, SEB confirmed Wednesday its goal to reduce its net debt to a level less than twice its EBITDA by the end of this year.
AFP Source
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