(AOF) – The Seb group announces the success of a new Schuldschein-type private placement, amounting to 650 million euros divided into four maturities of 3, 5, 7 and 10 years. Until then, no broadcast in Schuldschein format from a French transmitter had taken place since the start of the year. The amount of financing was thus increased, from an initially planned amount of 200 to 650 million euros.
This new issue is part of a policy of active management of the Group’s financial flexibility and will allow it to refinance debt maturing in December 2023 and 2024, to extend the average maturity of its debt, 80% of this issue has a maturity of more than 5 years and benefits from very attractive financing conditions.
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Key points
– World leader in small household appliances born in 1944 with a vast portfolio of brands (All-Clad, Curtis, Krups, Lagostina, Moulinex, Rowenta, Supor, T-Fal, WMF…), including 4 global, 17 regional, 3 high-end and 6 professional;
– Revenues of €8 billion distributed between Western Europe for 33%, China for 27%, the rest of Asia for 8% and the Americas for 17%;
– Historical activity in culinary items for 35%, behind small household appliances for 60%, diversification into professional products (8%) progressing rapidly;
– Business model favoring growth through brand complementarities and competitiveness through the manufacturing of high value-added products in mature countries and the use of the circular economy;
– Capital locked by the founding families (41.91% of the capital including 32.81% acting in concert), followed by the Strategic Participation Fund (4.74%) and Peugeot Invest (4%), the board of directors of 17 members being chaired by Thierry de La Tour d’Artaise, with Stanislas de Gramont providing general management;
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Balance sheet under control with equity of €2.9 billion at the end of June compared to debt of €2.3 billion, i.e. a leverage of 2.7.
Challenges
– Strategy based on organic growth, international expansion aimed at leadership in countries, and competitiveness;
Innovation strategy:
– in industrial processes, to optimize technical platforms,
– in the offer, with 30% of turnover generated on products less than 18 months old and 3.5% of turnover devoted to R&D (filing of 436 patents),
– partnerships with public research centers and, for 5 to 10% of sales, with manufacturers with 7 areas of research – food, robotics, chemistry, physics, physiology, social sciences and information technologies,
– investment, via the Seb Alliance fund, in innovative companies in well-being, connectivity and sustainable development, with a focus on online sales,
– opening of a global innovation center in Ecully;
– Environmental strategy aiming for carbon neutrality in 2050 with 2 levers:
– industrial process: eco-design, logistics,
– circular revolution (reparability, recycling of materials, rental, second life), actions for customers and society (SEB funds);
– integration of ESG criteria into remuneration;
– Rise of digital (40% of sales), strengthening of information systems and strengthening of the logistics chain.
Challenges
– Sensitivity of the euro vs. the yuan, the real, the ruble, the Turkish lira and the dollar;
– Inflation of raw materials (5O% of turnover with 1/4 of production located in Europe), freight costs and supplies hit;
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Integration of acquisitions – San Marco (espresso machines), Pacojet (emulsifying device) in the professional sector – and Forge Adour (planchas) in the general public;
– Confirmation of the rise in sales in key markets – Europe and China for the general public – and the dynamism of the professional division;
– Realization of conquest ambitions, with Krups, in Australia and New Zealand;
– After a recovery in turnover in 2
th
quarter, 2023 objectives raised: growth of 5% for sales and +10% for operating profit.
Learn more about the Consumer Goods sector
Cleaning, hygiene and beauty products: how to reverse the balance of power between producers and distributors
The Descrozaille law, recently adopted, caps the discounts that distributors can offer on cleaning, hygiene and beauty products. However, three quarters of these products currently display higher discounts: 52% on average on toothbrushes or 50% on dishwashing liquids, for example. The objective of this law is clearly to protect manufacturers on the grounds that it is essentially the suppliers who finance promotions, by cutting into their margins, and not the distributors. The measure therefore aims to limit the continued loss of value of the sector in recent years. According to the Circana firm (formerly IRI), the price of hygiene and beauty products fell by 13.4% between 2007 and 2022. For distributors, this law poses a risk to the 232 million euros in turnover (105 million euros for hygiene and beauty and 125 million euros for maintenance). However, this provision could also favor private label brands (MDD).