(AOF) – Seb Alliance, the investment vehicle of Groupe Seb, announces that it has taken a minority stake in the start-up Auum, acronym for “Let’s Stop Single Use Now”. Launched in 2019, the company’s mission is to help companies eliminate the 5 billion disposable cups still consumed each year in France. A mission in line with the Seb Alliance roadmap, the aim of which is to support innovative concepts focused on new uses, particularly in terms of CSR.
“As an industrialist, supporting the auum start-up means above all promoting the entrepreneurial spirit and innovation, values strongly anchored within the Seb Group. It also means supporting the industrial deployment of a solution with a strong environmental impact. We are proud to contribute to the success of auum and we will be present alongside them to help them grow from a start-up to a giant!”, commented Stanislas de Gramont, Managing Director of Seb Group.
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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).