(BFM Bourse) – The French small electrical appliance giant posted weaker-than-expected organic growth in the first quarter, the group having been penalized by the impact of the Ukrainian conflict and changes in loyalty programs. Despite everything, SEB confirms an increase in its turnover and its operating result from activity for 2022. The market does not take note of the confidence shown by the management for the current year, the title ends the week with a red lantern of the SBF 120.
SEB is not repeating its “historic” performance at the end of 2021. The household appliance group reported organic growth below expectations and an operating profit on activity down to 140 million euros in the first quarter 2022.
The market sanctions this drop in speed. Contrary to the trend, the action of the household appliance champion signs the largest drop in the SBF 120 with a decline of 4.57% to 114.80 euros around 4:45 p.m., back to two-year lows.
Over the first three months of the year, SEB recorded revenue of 1.915 billion euros, up 3.4% on a reported basis. Organically, sales growth was weaker and only fell to 0.4% over the period, penalized by “the impact of the Ukrainian conflict and changes in loyalty programs.” Sales fell by around 40% in the quarter in Ukraine where the group “virtually ceased” its activity with the conflict. SEB recorded a decline of around 20% in its first quarter sales in Russia, where it had to drastically reduce its activities and suspend all investment.
Sales at the start of the year for the owner of the Krups, Moulinex, Rowenta and Tefal brands suffered from a “demanding basis of comparison” with a “record” first quarter of 2021. Last year, the group benefited from “exceptional business momentum and major loyalty programs representing approximately 50 million euros.”
Seb’s operating profit on activity amounted to 140 million euros, including a negative currency effect of 32 million euros. At constant exchange rates and perimeter, operating profit on activity is therefore 172 million euros after 198 million euros in the 1st quarter of 2021.
By way of outlook, the firm is maintaining its ambition for 2022 to increase turnover and increase operating profit on activity, while saying that it is very vigilant about the geopolitical and health situation.
Sabrina Sadgui
©2022 BFM Bourse
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