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, driven by innovation, market share gains, and strong performance in both Consumer and Professional divisions.

• Operating profit (ORFA) rose 35.4% to €244 million, with the highest-ever Q2 operating result and margin up 1.5 points to 6.5%.

• Net profit increased 31.6% to €100 million, representing a 2.7% net profit margin.

• Strategic moves included the acquisition of Sofilac, a majority stake in Alesayi (Saudi Arabia), and the launch of a Professional Coffee Hub in China.

• Product innovation and go-to-market execution drove growth in key categories such as cookware, oil-less fryers, full-auto coffee machines, vacuum cleaners, and linen care.

Financial highlights

• Q2 2024 sales were €1,847 million, up 5.6% like-for-like year-over-year.

• Professional business grew 13.8% reported and 10.9% like-for-like; Consumer up 2.2% reported and 5.9% like-for-like.

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

• 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.

• Free cash flow was negative €215 million in H1 2024, mainly due to working capital and the Sofilac acquisition.

Outlook and guidance

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

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

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