Groupe SEB (Paris:SK)(ISIN:FR0000121709):
IFRS
-0-
*T
%
change
(in EUR millions) ==================
Current Constant
exchange exchange
2005 2006 rates rates
===================================== ====== ====== ======== =========
France 591 595 + 0.6 + 0.6
===================================== ====== ====== ======== =========
Other EU countries 677 691 +2.1 + 2.0
===================================== ====== ====== ======== =========
North America 352 390 + 11.0 + 11.5
===================================== ====== ====== ======== =========
South America 204 246 + 20.7 + 16.8
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Central Europe, CIS, Asia and other
countries 639 729 + 14.0 + 16.2
===================================== ====== ====== ======== =========
TOTAL 2,463 2,651 + 7.6 + 7.9
===================================== ====== ====== ======== =========
Rounded Percentages based
figures on exact figures
*T
For Groupe SEB, 2006 marked a return to robust growth.
Consolidated sales totalled EUR 2,651 million, an increase of 7.6% at
current exchange rates and 7.9% at constant exchange rates. This
performance includes:
-- 5.4% organic growth over the year, with a 6.5% rise in the
fourth quarter, significantly outperforming the last three
months of 2005;
-- the full-year contribution of businesses acquired in 2005
(representing an extra 4 months' sales for Lagostina and 5
months' sales for Panex), and the consolidation over the last
four-and-a-half months of newly-acquired Mirro WearEver, based
in the USA. In all, these changes in scope of consolidation
added EUR 63 million to reported sales;
-- a EUR 7 million unfavourable currency effect, reflecting the
euro's appreciation against virtually all of the Group's
functional currencies, particularly in the fourth quarter.
The significant improvement in organic growth, after several flat
years, is primarily attributable to the Group's continued rapid
international expansion, accompanied this year by an upswing in
Europe.
In France, sales ended the year above their 2005 level, reflecting
a stronger second half compared with the first six months. In the
generally more favourable environment, prices in the small domestic
equipment market held up better than in the previous years and product
mix improved again, as consumers showed a renewed interest in
established brands. Groupe SEB enjoyed brisk sales of cookware, hair
care appliances and espresso coffee machines, while the successful
launches of Beertender, Actifry, an oil-free fryer, new breadmakers
and the Intens vacuum cleaner helped to drive momentum.
Elsewhere in the 15-country European Union, sales growth was led
by the extra 4 months' contribution by Lagostina. Based on a
comparable scope of consolidation and constant exchange rates, sales
were unchanged from 2005, representing a reversal of the trend
observed in previous years. The situation continued to vary, however,
from one country to another. In Germany, the overall environment
improved and the modest decline in sales was entirely attributable to
the absence of promotional offers by discount stores, while sales via
all other channels increased. In the United Kingdom, the Group chose
to preserve its margins in the face of heavy pricing pressure from
certain retailers, leading to a fall in unit sales. Business held firm
in Italy and Belgium and rose in substantially all other countries,
led by Austria, Spain, Greece and Portugal.
In North America, turnover rose 12.9% at constant exchange rates,
including a EUR 25 million contribution from US-based Mirro WearEver,
which was consolidated as from mid-August. Based on a comparable scope
of consolidation and at constant exchange rates, North American sales
were 3.8% higher. Organic growth in the United States came to 3.3%,
reflecting less buoyant conditions in the latter part of the year
compared with the first half. The various brands performed unevenly.
All-Clad continued to expand rapidly, sustained by strong demand for
premium products, and Rowenta's successful new irons helped to
strengthen the brand's market position. T-Fal turned in an erratic
performance, however, in a highly competitive environment, while Krups
was less successful than expected, particularly its coffee machines,
leading to a sharp drop in sales. Sales in Mexico and Canada grew.
In South America, growth at comparable scope of consolidation and
constant exchange rates amounted to 8.1%, reflecting the generally
buoyant conditions in the region's markets. In Brazil, sales remained
brisk throughout the year, despite the unfavourable impact of the
strong real on Arno's sales. Growth was led by high consumer spending
and by successful new product launches, including filter coffeemakers,
blenders, mixers and personal care appliances. Seasonal demand for
electric fans was strong and the new vacuum cleaner models proved to
be a hit in the market. Sales of Panex's revamped product ranges were
in line with budget. Excluding Brazil, sales dynamics in South America
was led primarily by Venezuela and Colombia, two extremely fast
growing markets.
In Central Europe, CIS, Asia and other countries, which together
account for over 27% of consolidated sales, organic growth came to
16%, helped by a very good fourth quarter all round. Except for South
Korea, sales increased in all markets, despite the fall in
substantially all local currencies against the euro:
-- in Central Europe, where demand remains as strong as ever;
-- in the CIS, helped by continued sustained growth in Ukraine;
-- in Turkey, despite a difficult year shaped by a number of
unfavourable events;
-- in Japan, where growth was driven primarily by the outstanding
success of the electric kettle range;
-- in Australia, led by significant advances in cookware sales;
-- in China and the "new markets" (including Singapore, Thailand
and Malaysia), where the Group is currently laying the
foundations for future growth.
About Groupe SEB
Groupe SEB is the world leader in small domestic equipment. It
operates in more than 120 countries through its prestige
brands--All-Clad, Arno, Calor, Krups, Lagostina, Mirro, Moulinex,
Panex, Rowenta, Samurai, Seb, Tefal and WearEver--and has 14,400
employees.
http://www.groupeseb.com
