(Boursier.com) — Seb rose by 1% to 112.80 euros this Monday, while AlphaValue accumulated the file by targeting a price of 143 euros after the weakness of the stock on the stock market which followed the announcement of the exit of the capital of Peugeot Invest which put an end to 20 years of joint history, the holding company having announced the success of the sale of 2,223,674 Seb shares, or approximately 4.02% of the capital, at the price of 106 euros per share… Taking into account of a 7% discount induced by the sales process, Bryan Garnier said he was convinced that “any weakness in the price represented an opportunity to position ourselves in order to benefit from optimistic prospects for the 2024 financial year and attractive expansion margins in the medium term. The firm should benefit from a gradual recovery in China and a return to growth in Western Europe and North America with the end of the destocking phase.
Furthermore, in the accounts, the Seb group achieved sales of 8.006 billion euros in 2023, up +5.3% like for like (+0.6% in published data). This good organic growth was offset by a negative currency impact of the same magnitude coming from the depreciation of several currencies compared to the euro (notably the Chinese yuan). Furthermore, the turnover includes a limited scope effect linked to the integration of the acquisitions of Zummo, La San Marco and Pacojet.
The group achieved an ROPA of 726 ME, up 17% compared to the end of December 2022 (620 ME). The operating margin stood at 9.1% of sales (7.8% the previous year).
At 667 ME, the operating result shows an increase of 22%, or +121 ME, compared to 2022. The 2023 financial result stands at -81 ME, stable compared to 2022. Net profit, Group share, amounts to €386 million (+22.1% compared to 2022).
Strengthened balance sheet
As of December 31, 2023, shareholders’ equity amounted to €3.461 billion, almost stable compared to the end of 2022. At €805 million, the free cash flow generated in 2023 improved considerably after an atypical 2022 which ended by a consumption of 20 ME.
Free cash flow notably made it possible to finance acquisitions made in 2023 (including SEB Alliance’s equity investments), for €238 million, as well as dividends paid and share buybacks.
In this context, net debt as of December 31, 2023 is down significantly by 204 ME, to 1.769 ME (including 358 ME of IFRS 16 debt). This leads to a significant improvement in the net financial debt/adjusted Ebitda ratio to 1.8x (2.3x at the end of 2022) and 1.6x excluding the effect of IFRS 16 (2.1x at the end of 2022).
Quoting…
Dividend support
The Board of Directors has proposed to distribute, for the 2023 financial year, a dividend of 2.62 euros per share, an increase of +6.9% compared to the dividend paid in 2023. This increase reflects both the return to profitable growth achieved in 2023 and the Board’s confidence in the Group’s ability to continue its responsible development trajectory, both in the Consumer business and in the Professional business.
For shareholders who have held registered shares for more than 2 years, the dividend will be increased by a loyalty bonus of 10%, bringing the dividend to 2.88 euros per share (holdings less than 0.5% of the capital for the same shareholder). The detachment date for the share coupon is June 3 and the dividend payment date is June 5.
Perspectives displayed
The group indicates that it is initiating the process of acquiring the Sofilac group. Through this acquisition, the group wishes to strengthen its expertise in the high-end cooking segment, and thus continue its growth in the professional and semi-professional markets…
On the financial level, Seb reaffirmed his ambition, announced in December 2023:
– an average annual growth rate in turnover at a constant rate of at least 5%;
– an operating margin increasing towards 11%;
– the continuation of a significant generation of free cash flow.
In 2024, in a still uncertain macro-economic and geopolitical environment, with a slow economic recovery, particularly in China, Seb is counting on a still resilient Small Domestic Equipment market and continued strong development of the Professional markets. In general public, 2024 should mark a more widespread return to growth in mature countries, a gradual recovery during the year in China and the maintenance of good momentum in emerging countries in a still penalizing currency context. In addition, the Group intends to continue the growth of its Professional activity over a strong track record. In this context, the operating margin is expected close to 10%.
Among other analysts’ opinions, Portzamparc believed that the results were “good and without surprises”. For 2024, the scenario is more ambitious in terms of guidance, enough to see the MOPA return above 10% (10.3%), according to the analyst who emphasizes that “the acceleration of debt reduction will make it possible to amplify the external growth policy. Enough to stay on the purchase, aiming for a price of 125 euros on the file. BNP Paribas Exane remains ‘outperforming’ on Seb by adjusting its target to 132 euros.