Seb Sa Stock Earnings Reports

Groupe SEB closed 2025 with modest like-for-like sales growth of 0.3% (EUR 8.169bn) but a significant decline in operating recurring profit after amortization (ORfA) to EUR 601m (-EUR 201m vs prior year), producing a 7.4% operating margin. Management attributes roughly EUR 120m of 2025 ORfA headwind to three cyclical factors (North America, currencies and emerging-market currency/price effects). Net profit group share was EUR 245m (note: prior year included a EUR 190m Competition Authority fine), and net financial debt stood at EUR 2.34bn including the fine (EUR 2.152bn excluding it). The Board proposes a stable dividend of EUR 2.8 per share.

Management launched the “Rebound” plan to restore profitable growth: targeted actions include faster, higher‑quality product launches, heavier investment in social/digital (tripling social media spend; 3x influencer video views), SKU rationalization (–25% to –30%), industrial and purchasing efficiencies, and broader simplification using data/AI. The plan targets EUR 200m of recurring annual savings by 2027, supported by up to ~2,100 job positions affected worldwide (1,400 in Europe; up to 500 voluntary in France). One‑time implementation costs are expected at about 1.0–1.25x the recurring annual savings and will be mostly incurred in 2026–2027 (the company has already provisioned EUR 24m in 2025).

Operational highlights: strong innovation-driven momentum in floor care, linen care, cookware, rapid new-category rollouts (washer vacuum cleaners, spot cleaners, Aerosteam garment steamers), good e-commerce/direct-to-consumer growth (~+10% organically), China and EMEA showed resiliency while the Americas and Professional were the weaker areas (North America -4.5% LFL; Professional -5.9% LFL). Capital investment in a Professional Coffee hub in China (~EUR 40m) completed, with serial production starting early 2026.

Financial and cash priorities for 2026: management aims to return ORfA to growth in 2026, normalize free cash flow generation, and reduce leverage toward the group's comfort zone (~2x net debt/EBITDA by 2027). Currency impacts are expected to be much reduced versus 2025 (2025 currency-related ORfA drag ~EUR 80m–120m total), though some emerging-market currency pressures remain. ESG progress continued (GHG -23% vs 2021; recycled material >50% in products), and ratings improved (Sustainalytics, MSCI).