Groupe SEB(Paris:SK)(ISIN:FR0000121709):
-0-
*T
IFRS
%
9 months 9 months change
(in EUR millions) 2005 2006 ===================
Current Constant
exchange exchange
rates rates
======== ======== ========= =========
France 365.4 367.0 + 0.5% + 0.5%
================================ ======== ======== ========= =========
Other EU countries 435.2 445.2 + 2.3% + 2.3%
================================ ======== ======== ========= =========
North America 232.7 259.7 + 11.6% + 9.0%
================================ ======== ======== ========= =========
South America 131.5 169.7 + 29.1% + 20.7%
================================ ======== ======== ========= =========
Central Europe, CIS, Asia &
other countries 431.2 487.6 + 13.1% + 14.1%
================================ ======== ======== ========= =========
TOTAL 1 596.0 1 729.2 + 8.4% + 7.5%
================================ ======== ======== ========= =========
Rounded figures Percentages based on
exact figures
*T
Sales remained solid for the nine months that ended 30 September
2006, rising 8.4% at current exchange rates and 7.5% at constant
exchange rates. The EUR 1,729.2 million in revenue reported for the
period includes the aggregate EUR 44 million additional contribution
from Lagostina and Panex, acquired last year and consolidated,
respectively, for four months and five months longer than in the first
nine months of 2005, and from Mirro WearEver, consolidated in 2006 for
one and a half months. In addition, the positive currency effect,
which amounted to EUR 23 million in the first half, decreased sharply
to EUR 13 million, as the unfavourable second-quarter trend carried
over into the third quarter. At constant scope of consolidation and
exchange rates, revenue was up an organic 4.8% for the nine months.
This performance, which is almost in line with the first half,
reflects the expected and previously announced modest slowdown in
third-quarter growth, in the light of high prior-year comparatives.
Third-quarter sales continued to trend upwards, however, increasing by
an organic 3%. Growth was led by an upswing in France, firm demand in
South America and continued strong momentum in international markets.
In the 15-nation EU market, business remained difficult and varied,
while sales slowed somewhat in North America.
In France, sales were up slightly compared to the first nine
months of 2005. Following a lacklustre second quarter, the Group
turned the situation around during the summer in a better and more
buoyant market context. Sales still differed significantly from one
product family to another. Business was brisk in cookware but more
varied for small electrical appliances: competitive in irons and
vacuum cleaners and difficult in food preparation appliances but still
fast-growing in espresso coffee machines, blenders and personal care
appliances while up sharply in fryers.
Elsewhere in the 15-country European Union, sales growth was led
by Lagostina's contribution, as in the first half. At constant scope
of consolidation, revenue growth slowed slightly, reflecting a
situation that remained challenging and varied from one country to
another. After a positive second quarter, business declined in the
third quarter in Germany, Austria and the Netherlands, where the
impact of the Beertender draught beer system subsided following the
FIFA World Cup. Sales however rose in Southern Europe, notably in
Spain, Portugal and Greece.
In North America, third-quarter sales included a EUR 7-million
contribution from newly acquired Mirro WearEver, consolidated as from
16 August. At constant scope of consolidation and exchange rates,
sales growth in the US remained strong, although lower than in the
first half. The slowdown was due mainly to All-Clad, whose growth was
slower than in the first six months of the year. On the other hand,
Rowenta's performance improved, thanks to its successful new irons,
T-Fal reported stable sales and Krup continued to make up its
early-year shortfall. Business was held firm in Mexico, while a sharp
downturn in Canada completely wiped out the second quarter's gains.
In South America, sales were again satisfactory. In Brazil, Arno
adjusted its marketing strategy to the new currency context and
maintained its market share, with strong sales of semi-automatic
washing machines, fans, blenders and coffeemakers. Panex's performance
was boosted by the successful launch of new product ranges. Sales came
under some pressure in Argentina and Chile, but continued to grow
significantly in Colombia and make solid advances in Venezuela.
In the other countries, Groupe SEB pursued its rapid development,
with results very close to those reported in the first half, despite a
continued slowdown in South Korea due to changes in the retailing
industry and heightened competition. The growth dynamic covered nearly
all markets, with a sharp acceleration in the CIS and Ukraine, strong
momentum in Central Europe, and continued robust sales in Australia
and in Turkey, despite the significant decline of the Turkish lira
against the euro. In Japan, where kettles are still very successful,
third-quarter sales growth was slowed by the weakening of the yen. In
China, Groupe SEB continued to make significant advances, validating
its projects in a market that enjoys exceptional growth potential.
