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In Q3 23, organic sales were up by +8.9% and the operating margin from activity jumped to 10.9% of sales (+4.6pts). Seb benefited from high volumes in Professional thanks to large coffee machine contracts in China, the UK and US. In Consumer, organic sales resumed in Other EMEA countries and Americas. The 2023 guidance is unchanged. In Q4 23, Seb anticipates a lower activity level in Professional, very moderate demand in China and the concentration of investment on growth drivers.
Companies: SEB (SK:EPA)SEB SA (SK:PAR)
AlphaValue
In Q2 23, organic sales growth (+6.8%) comfortably exceeded expectations. The main positive surprise came from the strong rebound in the EMEA region in Consumer. In H1 23, the operating margin from activity (-0.4pt to 5% of sales) included a significant margin recovery in Q2 23 (+3pts to 6.4% of sales). Operating WCR improved thanks to lower inventories. The 2023 guidance has been upgraded including organic sales growth of +5%, an increase in the operating result from activity by +10% at least.
Although lower organic sales had been expected, the decrease in Consumer (-6.6%) was above expectation while record organic growth in Professional (+29.1%) beat expectation. Lower sales had a negative impact on the operating result from activity, amplified by the embedded effect of 2022’s high production costs (c.€50m). On the positive side, free cash flow exceeded €200m thanks to inventory reduction. The 2023 guidance includes a recovery in Consumer, strong growth in the Professional business a
Seb reported a higher-than-expected 2022 operating margin from activity at 7.8% of sales (-2.3pts yoy). There was a big contrast between the low margin in H1 22 (5.4% of sales) and the high margin in H2 22 (9.8% of sales) obtained through the reduction of spending on growth drivers and administrative costs combined with a favorable product mix and price increases (+5% on average) during 2022. For 2023, Seb anticipates a stronger top line and an improvement in the operating margin from activity.
In Q4 22, organic sales decreased by 5.6%, less than expected. Seb benefited from strong sales of coffee machines and hotel equipment in the Professional business. In Consumer, Seb beat expectations in South America thanks to Colombia, in Other EMEA thanks to organic growth in Poland, Turkey, Egypt, the United Arab Emirates and in China (+3.8%) despite the surge in COVID-19 cases. The operating margin from activity is now expected in the high-end of guidance (7.0-7.5% of sales) in 2022.
Seb had a weak Q3 22 due to lower volume in France and Germany, and the loss of activity in Russia and Ukraine. The negative impact from activity was significant for the operating margin (-4.3pts to 6.3% of sales). The 2022 guidance was revised downwards taking into account the continuation in Q4 22 of the trend in sales seen in Q3 22 and unchanged headwinds of €-300m on the operating result from activity.
Q2 22 was disappointing. Organic sales decreased by 5.1% due to the Consumer segment (-5.9%). Seb was impacted by weak demand, sales losses in Russia and Ukraine, less loyalty programmes in Europe and the lockdowns in China. In H1 22, the operating margin from activity collapsed to 5.4% of sales (-3.5pts yoy). Higher operating cost was offset by price increases and the product mix but Seb supported higher investment for growth and sales and administrative expenses. 2022 guidance was downgraded.
Companies: SEB SA (SK:PAR)SEB SA (0MGS:LON)
Organic sales grew slightly in Q1 22 (+0.4%) vs a very high comparative. Fewer loyalty programmes in Western Europe (-2.6pts) and the loss of business in Russia and Ukraine had a strong cumulative negative effect on the growth rate (-3.7pts). The operating income from activity dropped to 7.2% (-3.4pts) due to a negative currency effect and a €50m surge in investment for growth and commercial expenses. Seb is targeting growth in sales and the operating result from activity in 2022.
2021 was a great year with organic sales growth of 15.5% and an operating margin from activity of 10.1% of sales, back to the 2019 level. Seb benefited from a huge positive price-mix effect, productivity gains in manufacturing and structure costs under control. For 2022, Seb is confident and anticipates organic sales growth and an increase in the operating income from activity. The question mark is about the impact of the war between Russia and Ukraine on the European activities.
Organic sales grew strongly in Q4 21 (+8.8%, o/w +8.4% in Consumer, +14.4% in Professional). In Consumer, Seb benefited from double-digit organic growth in Other EMEA countries (+13.5%), North America (+11.8%) and China (+14.5% thanks to high Double 11 sales). In 2021, Seb had record organic sales growth (+15.5%) and anticipates an operating margin from activity of 10% of sales. Seb’s strengths are a diversified product portfolio and geographic presence, and the ability to manage well cost infla
Seb beats expectation with solid organic sales growth and a sastisfactory operating margin from activity in a complex environment. Organic sales grew by +6.4% and the operating margin from activity was 10.6% of sales. Seb benefited from low promotional activity, strong volume, price increases, a positive mix effect and productivity gains which offset higher raw material, components and logistic costs and the currency headwinds. 2021 guidance was upgraded.
In Q2 21, organic sales growth remained solid in Consumer (+20.6%), despite no growth in China (-0.1%), and the organic recovery exceeded expectations in the Professional business (+34.2%). In H1 21, the ORfA margin increased to 8.9% of sales (+5.4pts) thanks to higher volume and the positive price mix. 2021 guidance is slightly revised upwards in terms of reported sales growth (>+10% now) and unchanged for the ORfA margin (close to 10% of sales) despite higher negative currency effects.
Q1 21 was an impressive quarter with organic sales growth of +31%, o/w +39% in the Consumer segment and an operating result from activity of €198m (vs €18m in Q1 20) which exceeded by 43% the pre-COVID-19 level. In Consumer, all geographic areas contributed to sales growth. China rebounded (+30%) and was not the fastest-growing geographic area. The big good surprise came from EMEA (+41.5%) and the Americas (+61%). Lastly, Seb gave out its 2021 guidance which was above our current estimates.
Seb released its final 2020 figures which showed a good operating performance on a like-for-like basis. The COVID-19 pandemic boosted online sales which represented 35% of the total (+8pts). Starting the year 2021, the Consumer activities remain solid while the Professional business is expected to be back to normal in H2 21. Management anticipates organic sales growth and an increase in operating income from activity in 2021.
Organic sales grew by 2.9% in Q4 20, above expectations. The good performance came from the Consumer business (+6.2%), while the Professional activities (-28.5%) continued to suffer from the COVID-19-related restrictions for hotels, restaurants and the catering sector. The Chinese New Year, which falls on 12 February, will have an impact on sales in Q1 21. The stronger end of the year 2020 led the group to raise guidance for operating income from activity to c.€600m in 2020.
Companies: SEB SA
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AFC has made strong progress with products and its manufacturing strategy. Despite heavy investment, the cash position, at £27.4m, was slightly better than our estimate for £26.9m, demonstrating good discipline. The monthly cash burn rate (at c. £1.3m) is tracking in-line with our expectations. Generally, we maintain our estimates for significantly increased sales in FY24e and FY25e, with the cash position unchanged. Recent news on commercial progress has been positive. The 30kW H-Power Generato
Companies: AFC Energy plc
Zeus Capital
Spectra Systems (SPSY) has an excellent record in growing profits through its highly regarded technology and relationships with key clients, which include a prominent global central bank. Now, the company is ready for the next stage, and we see the acquisition of Cartor Security Printers as a game-changer in enhancing its ability to continue, and potentially accelerate, this momentum, even as it continues to benefit from a near-term, multi-million-dollar sensor refresh programme with a long-term
Companies: Spectra Systems Corporation
WHIreland
The group’s year-end update flags trading ahead of expectations, achieved by strong growth in its Systems division, with the earlier than expected delivery of a NATO contract just prior to the year-end that pulls forward profit into FY24 making it a record year. Components continue to see a normalisation of orders and slower demand as previously flagged. Order cover is strong and further opportunities in the defence/security sector are leading to investment in Integrated Systems capabilities. Re
Companies: Solid State plc
Cavendish
Today’s trading update confirms FY24E profitability above the top end of previously guided range, with positive trading momentum building into FY25.
Companies: Revolution Beauty Group plc
2023 was a challenging year for Tandem, with cost-of-living pressures impacting demand for many of the group’s products. This led us to downgrade our forecasts several times during the year (including in December), and today’s results are largely in line with those revised projections – revenue -17% YoY to £22.2m and an adj. LAT of -£1.0m (our forecast of -£0.9m). FY24E looks more positive, however: economic pressures are easing for consumers (inflation is falling, interest rate cuts are expecte
Companies: Tandem Group plc
Solid State is a specialist value added component supplier and design-in manufacturer of computing, power and communications products. This morning, the group has provided a trading update for the year ended 31 March 2024, reporting the earlier than expected delivery of specific contracts within its Systems division and resulting in the group's FY 2024E revenue and PBT outturn anticipated ahead of our forecasts, with a commensurate decrease in our FY 2025E estimates. The delivery of these contr
Companies: FOG TND BVXP ACC HDD
Encouraging FY23 results from SPSY this morning show profits and cash a touch ahead of expectation and position the company well for a year of strong growth in FY24E. SPSY leads the market in machine-readable high speed banknote authentication, brand protection technologies and gaming security software. The company grew the business robustly in FY23 (PBTA +6%, EPS pared by increased tax payments, progressive DPS), building on a decade of double digit CAGR; and closed the year with the transfor
Liberum
Companies: LPA SOLI NANO QTX
Finals from the leader in machine-readable high-speed bank note authentication, brand protection technologies, security printing, and gaming software, in line. FY23’s stand-out feature was December’s acquisition of Cartor Holdings, the security printing business. As discussed at the time, this has moved Spectra’s Fusion polymer substrate proposition substantially forward, strengthens its competitive position and provides access to state of the art manufacturing facilities. Extending up the suppl
Allenby Capital
While revenue fell short of expectations due mainly to self-tan weakness, progress on margins, cost synergies and efficiency enabled BAR to deliver a reduction in H1 losses. While growth and profitability in other high margin brands has progressed, Skinny Tan trading is not expected to improve until next year. With synergy benefits having mostly annualised, lower sales forecasts impact the timing of the inflection to profit. We now assume losses both this and next year, albeit net cash is mostly
Companies: Brand Architekts Group plc
Singer Capital Markets
Companies: Portmeirion Group PLC
Shore Capital
Dowlais Group’s first set of results were ahead of our expectations, with positive cash generation a highlight despite restructuring and demerger costs. Softer automotive markets will limit margin progress in FY24 towards the double-digit target. Despite this, margins of c 6.5% are still ahead of automotive peers, although the shares trade at a significant discount to our implied generic peer-based valuation.
Companies: Dowlais Group PLC
Edison
Companies: IG Design Group plc
Canaccord Genuity
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