SEB (SK) H1 2025 earnings summary

Executive summary

• H1 2025 sales reached €3,748m, up 0.6% like-for-like and 0.2% reported, with Q2 organic growth rebounding to +1.9% after a flat Q1, driven by Western Europe and China, while North America faced significant headwinds from tariff uncertainty and currency volatility.

• Professional business returned to growth in Q2 after three quarters of decline, though H1 remained negative as expected; acquisitions supported recovery.

• Strategic initiatives included the acquisition of La Brigade de Buyer and Tasty in China, a €500m bond issue, and new logistics and refurbishment centers in France.

• Persistent uncertainties remain due to US tariffs, strong currency volatility, and macroeconomic/geopolitical instability in several regions.

• Net profit attributable to owners was €1m, down from €100m in H1 2024, reflecting seasonality, lower Professional Coffee contribution, and currency effects.

Financial highlights

• H1 2025 revenue: €3,748m (+0.6% LFL, +0.2% reported); Q2 sales €1,842m, up 1.9% LFL; negative currency impact of €64m, positive scope effect of €48m.

• H1 ORfA was €119m, down from €244m last year (-51%); Q2 ORfA €69m vs €133m in 2024; operating margin 3.2% vs. 6.5% in H1 2024.

• Net financial debt at end of June 2025 was €2,658m, up €236m year-over-year, including a €189.5m French Competition Authority fine.

• Free cash flow was negative at -€213m, mainly due to higher inventories, CapEx, and tariff-related supply anticipation.

• Working capital at 18.6% of sales, with inventories at €1.9B, elevated due to supply chain uncertainties and Red Sea crisis.

Outlook and guidance

• Full-year organic sales growth guidance revised to 2–4% (from ~5%), reflecting persistent North American headwinds and tariff uncertainty.

• ORfA guidance set at €700–750m for 2025, with H2 expected to show recovery in both Consumer and Professional segments, driven by margin protection and cost discipline.

• No expectation of worsening tariff impact; scenario assumes continued uncertainty but not escalation.

• Positive momentum expected in EMEA, China, and South America for H2.