Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on SEB SA. We currently have 7 research reports from 1 professional analysts.
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Strong organic growth and margin improvement
26 Oct 16
Seb had a very good Q3 16 with strong organic revenue growth (+6.5%) and a significant increase in the operating result from activity (+21%) despite a negative currency effect. Q3 2016: Sales reached €1,204m (+6.8%). Overall growth included a negative currency effect (-1.7% or €-18m) and a change in perimeter (+2% or €21m) related to the full contribution of OBH Nordica (vs one month in Q3 15) and the integration of EMSA since 1 July 2016. Organic growth was 6.5%. Organic sales growth was attributable to Asia (+9.5%, o/w +10.2% in China) and the EMEA region (+6.9%, o/w +4.6% in Western Europe, +13.1% in other countries). The Americas was the weakest market (+2%, o/w +1.4% in North America, +3% in South America). The operating result from activity was €140m (+21%) corresponding to 11.6% of sales (+1.3pts). The improvement in the operating performance was attributable to the increase in volume, a price/mix effect and favourable raw material costs. 9 months 2016: Seb posted sales of €3,368m (+3.9%). Organic growth was 6.2%, o/w +11.9% in Asia (including +14.9% in China), +6.1% in EMEA (including +4.7% in Western Europe), -2.6% in the Americas (including -5.3% in North America, +1.4% in South America). The operating result from activity surged to €312m (+19%) after a significant negative currency effect of €-104m and a negative impact of €-3m related to the change of perimiter. Net debt increased to €619m on 30 September 2016 (vs €481m on 30 September 2015). In H1 16, the group funded the purchase of an additional 7.9% stake in Supor and the acquisition of EMSA in Germany.
Dynamic growth, margin improvement
25 Jul 16
H1 16 earnings Sales reached €2,164m (+2.4%). There was a significant negative currency effect (-€96m) due principally to the depreciation of various currencies of the emerging countries against the euro. Organic sales growth was significant (+6% vs +8.7% in H1 15) thanks to a positive contribution from all product categories, in particular vacuum cleaners, home comfort, beverage preparation and electrical cooking. Organic sales grew in two geographic areas (+13.1% in Asia, o/w +17.2% in China, +5.6% in EMEA). Conversely, organic sales dropped in the Americas (-5.4%, o/w -9.5% in North America and +0.4% in South America). The operating result from activity increased to €172m (+17.7%) and the margin rate improved by 1pt to 8% of sales. The negative currency effect was higher yoy €-61m (vs €-32m in H1 15) and was attributable to lower hedging gains on the purchasing currencies ($ and yuan) and the depreciation of the rouble, Brazilian real, South American pesos and Turkish lira. Operating income increased at a lower pace (+9% to €134m) due to higher profit sharing (€14m vs €8m in H1 15 becasue of improved results in the French operations) and Other operating expenses (€-24m vs €-15m in H1 15) which included provisions for restructurings in Brazil. Group net profit was €62m (+15%) after higher net financial expenses (+9.6% to €25m) and a lower income tax rate (-1pt to 24%) and stable minority interests following the purchase of 8% of the shares of Supor and an increase in the stake to 81% of the capital. Operating cash flow was €144m, reflecting strong operating income and a signficant reduction in inventories. Seb has a sound financial situation. On 30 June 2016, gearing was 39% and the net debt/EBITDA ratio was 1.14x since net debt increased to €629m (vs €453m on 30 June 2015) due to the funding of the purchase of Supor’s shares and the acquisition of EMSA in Germany. The acquisition of WMF is pending the approval of the authorities and the funding of the operation is expected by the end of H2 16.
A significant and attractive acquisition in Germany.
26 May 16
Seb has signed an agreement with KKR for the acquisition of WMF in Germany. The company’s product-portfolio includes automatic coffee machines for the professional market segment (37% of sales), cookware which comprises high-end stainless steel articles essentially (56% of sales) and premium tabletop equipment for hotels/restaurants/cruise ships (7% of sales). WMF sells its products under the leading WMF-brand and other brands such as Schaerer in Switzerland (professional coffee machines), Silit and Kaiser (cookware) and HEPP (hotel equipment). The company owns a network of 200 shops in Germany. In 2015, WMF had sales of €1,060m (+4.3%) o/w 74% in Europe (51% in Germany) and 26% well-balanced in the US (6%), China (5%), Japan and Korea (9%), rest of world (6%), and adjusted EBITDA of €118m, c.11% of revenue. The headcount comprises 5,700 employees o/w 3,800 people in Germany. WMF operates six plants in Europe (four manufacturing facilities in Germany, one site in Switzerland and one site in Czech Republic) and two plants in Asia (one site in China and one site in India). The purchase price for the WMF shares is €1,020m. In addition, the transaction includes the acquisition of WMF’s net debt and early retirement and pension liabilities by Seb, representing a respective €565m and €125m at year-end 2015. The operation will be funded by debt. Seb had low financial net debt of €184m as of 31 March 2016. The approval from the relevant competition authorities is expected in H2 16, but more probably at the end of the year. Seb has said that the integration of WMF will be accretive (>20%) at the EPS level during the first full year of consolidation.
A really good set of figures
29 Apr 16
Q1 16 figures Sales reached €1,115m (+2.3%). Sales growth included a negative currency impact (€-39m vs €+60m in Q1 15). Integrated on 1 September 2015, OBH brought in €9m for the quarter. Organic sales grew by 5.1%. This was a very good performance considering the high basis of comparison last year (Q1 14: +9.4%). Q1 16 organic growth corresponded to volume increases and a substantial positive price/mix effect. Price increases were implemented in various countries to offset the negative currency headwinds. Organic sales growth was driven by EMEA (+5.3% vs +7.9% in Q1 15) and Asia (+10.1% vs +15.1% in Q1 15). Within EMEA, Seb performed well in France (+5% vs +11.9% in Q1 15 which was boosted by a number of loyalty programmes). In Asia, China was the most dynamic market and Supor’s organic sales were up 12.5%. Conversely, organic sales decreased in the Americas (-5.5% vs +3.4% in Q1 15) due to a drop in sales in North America (-12.4% vs +6.4% in Q1 15). In South America, Seb performed well. Organic sales were up 4.3% (vs -0.1% in Q1 15) despite the adverse macro-economics in Brazil. The operating result from activity increased very slightly to €93m (+1%). It included a significant negative currency effect of €-45m which was higher than last year in the same period (€-15m in Q1 15). Price increases and the favourable product-mix offset the negative currency effects. In addition, Seb benefited from savings on raw material costs, reflecting lower prices and negotiations with suppliers. Seb continued to invest in marketing/advertising and R&D which are key-expenses for growth. On 31 March 2016, Seb had low net debt, i.e. €184m (vs €132m at year-end 2015 and €357m on 31 March 2015), thanks to a reduction in inventories.
Very strong organic sales growth in 2015
20 Jan 16
Seb delivered very strong organic sales growth in 2015 (+8%, 1pt above our estimate) and a positive organic trend in all geographic areas. *2015 sales:* Seb posted sales of €4,770m (+12.1%). There was a positive currency effect (+3.5% or €149m) attributable to the appreciation of the $ and yuan vs the euro which more than offset the negative impact of the Brazilian real, rouble and peso. The significant positive currency effect seen in H1 15 (€127m) declined in H2 15 (€22m o/w €10m in Q4 15). The integration of OBH Nordica increased overall sales growth by 0.6%. The strong organic sales growth (+8%) was principally driven by Asia-Pacific (+12.8%), Western Europe (+9.7% excluding France, +5.6% in France) and North America (+6.7%). Although South America and Central Europe/Russia/other countries were challenging, Seb succeeded in posting moderate organic sales growth (+3.4% and +3.9% respectively). *2015 results expectation:* Management expects an operating result from activity of close to €430m in 2015 (earnings release on 25 February 15). Our current estimate is in line with this (€436m estimated). These are a good set of figures, particularly considering the strongly negative currency effect which should be €-100m at the operating level in 2015 (vs €-94m in 2014, €-35m in 2013).
Strong organic sales growth in most countries
28 Oct 15
Q3 15 was a very strong quarter with significant organic sales growth in most countries in mature and emerging countries, specifically Brazil (+6.5%) and China (+15%), and a surge of the operating result from the activity despite adverse currency effects. Q3 2015 figures: Sales reached €1,127m, +9.7% and +7.8% organically. There was a change in perimeter with the consolidation of OBH Nordica in Scandinavia (contribution in sales of €7m). Organic sales growth was mainly driven by four geographic areas: Western Europe excluding France (+12.4%), Asia-Pacific (+11.5%, o/w +15% in China), North America (+8.3%, o/w +7.8% in the US), South America (+7.7%, o/s +6.5% in Brazil). Seb had a honourable performance in France (+3.2%) taking into account that there was no loyalty programme. The weaker geographic area was Central Europe/Russia/Other countries (+0.5%). The operating result from the activity increased to €116m (+14%). Excluding the negative currency effect of €-16m, the surge was impressive (+30%). It reflected the impact of higher volume, a fairly good price environment, a favourable product-mix and cost-control. 9m 2015 figures: Sales were €3,240m (+13.5% and +8.4% organically), the operating result from the activity reached €262m (+38%) after a negative currency effect of €-48m. On a like-for-like basis, the operating result from the activity surged by 63%. On 30 September 2015, net debt amounted to €481m (-19% yoy).
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
N+1 Singer - Small-cap quantitative research - Momentum screen refresh + 10 focus stocks
12 Jan 17
We have refreshed our momentum style screen for the first time since inception on 26 July 2016. As before, the screen selects the 25 stocks exhibiting the most extreme momentum characteristics, according to our measurement method. From these we have selected 10 to focus on. Since inception the screen has underperformed both the main small-cap and micro-cap indices against a background of generally rising momentum. We have noted a subset of the basket, where decelerating momentum at the time of measurement appears correlated with significant share price falls since selection. We shall monitor this factor with the new screen, albeit there are only two such stocks showing this pattern, namely Lamprell (not rated) and Gear4music (not rated).
N+1 Singer - Morning Song 12-01-2017
12 Jan 17
As anticipated, the second half has again been stronger than H1 and results will be broadly in line with expectations. In line with this, the order book has continued to grow and is at record levels. This confirms that significant progress has been made in the Group’s shift towards its Technology Products division which, as targeted, contributed c.60% of group revenue in FY16. The small acquisition of Cable Power also gives a complementary boost to the product range. It is also worth noting the significant reduction in net debt, £1.0m ahead of our forecast. We remain supportive of the Group’s strategy and continue to see a bright future as this transition towards a design led technology solutions business continues. We look forward to more detail in March at the final results.
10 for 17
09 Jan 17
As always at the start of a year, there are significant uncertainties about the year ahead but I think in 2017, the level of uncertainly has decisively moved up a gear. In fact, a leading economist at the LSE, Ethan Ilzetzki, was recently quoted as saying “I view the current global economic environment as the most uncertain in modern history”. Wow.
Positive momentum on trading and cash
10 Jan 17
Trading for the four months to end December continued the positive trend of the first two to October. We understand that both constant currency trading and exchange rates have been favourable. Cash has also grown encouragingly, reflecting net receipts from the strong sales in late FY16 as well as early FY17. Recent softness in the shares represents excellent medium-term value for a niche market leader with positive growth.
19 Dec 16
600 GROUP | ACCSYS TECHNOLOGIES | AGGREGATED MICRO POWER HLDGS PLC | ALUMASC GROUP | ANGLO-EASTERN PLANTATIONS | AVINGTRANS PLC | CAPITAL DRILLING LTD | CARCLO | FENNER PLC | FLOWTECH FLUIDPOWER PLC | GLOBAL INVACOM GROUP LTD | GOOCH & HOUSEGO PLC | HARDIDE PLC | HAYWARD TYLER GROUP PLC | IOFINA PLC | M.P.EVANS GROUP | R.E.A. HLDGS PLC | REDT ENERGY PLC | RENOLD | ROBINSON | SOMERO ENTERPRISE INC | SURFACE TRANSFORMS PLC | TRANSENSE TECHNOLOGIES PLC | TRIFAST | ZAMBEEF PRODUCTS