SEB (SK) H1 2024 earnings summary

Executive summary

• H1 2024 sales reached €3,740 million, up 6.5% like-for-like and 3.6% reported year-over-year, with strong growth in both Consumer and Professional divisions driven by innovation and geographic expansion.

• Operating Result from Activity (ORFA/ORfA) rose 35.4% to €244 million, with an operating margin of 6.5%, and net profit attributable to owners increased 31.6% to €100 million.

• Strategic acquisitions and partnerships included Sofilac (professional culinary), a majority stake in Alesayi (Saudi Arabia), and the launch of a professional coffee hub in China.

• Product innovation and market share gains were achieved in key categories such as cookware, oil-less fryers, full-auto coffee machines, vacuum cleaners, and linen care, especially in Europe and emerging markets.

• Professional business posted record Coffee sales, particularly in China, and expanded into new geographies.

Financial highlights

• Revenue: €3,740 million (+6.5% like-for-like, +3.6% reported); ORFA/ORfA: €244 million (+35.4%); net profit: €100 million (2.7% margin); basic EPS: €1.84 (up from €1.38 in H1 2023).

• Net financial debt stood at €2,422 million as of June 30, 2024, up €76 million year-over-year, mainly due to acquisitions and working capital.

• ORFA margin improved to 6.5% in H1 and 7.2% in Q2, up 80–150 bps year-over-year.

• Working capital ratio at 18.2% of sales, slightly inflated by supply chain disruptions and timing effects.

• Negative free cash flow of €215 million in H1 2024, mainly due to working capital and Sofilac acquisition.

Outlook and guidance

• Organic sales growth for 2024 expected around 5%, with balanced contributions from Consumer and Professional divisions.

• Operating margin for the year targeted close to 10%, despite macroeconomic and geopolitical uncertainties.

• H2 expected to see less currency impact and continued strong performance in Europe, USA, and emerging markets.