SEB (SK) Q2 2025 earnings summary

Executive summary

• H1 2025 sales reached €3,748m, up 0.6% like-for-like, with Q2 acceleration in Western Europe and continued growth in Asia, while North America faced significant headwinds from tariff uncertainty and currency volatility.

• Professional business returned to growth in Q2 after prior declines, though H1 remained negative as expected.

• Net income dropped to €1m from €100m in H1 2024, reflecting lower operating results and higher financial costs.

• 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, currency volatility, and macroeconomic/geopolitical instability.

Financial highlights

• H1 2025 sales: €3,748m (+0.6% LFL, +0.2% reported); Q2 sales up 1.9% LFL.

• ORfA/ROPA was €119m in H1 (down 51% YoY); Q2 ORfA €69m; operating margin 3.2% vs. 6.5% last year.

• Net financial debt at €2,658m as of June 30, 2025, up €236m YoY, including a €189.5m French Competition Authority fine.

• Free cash flow for H1 2025 was negative at -€213m, mainly due to higher inventories and tariff-related supply anticipation.

• Working capital at 18.6% of sales, with inventories elevated due to supply chain risk management and Red Sea crisis.

Outlook and guidance

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

• ORfA/ROPA guidance set at €700–750m for 2025, with expected profit growth in H2 driven by Consumer and Professional recovery, margin protection, and cost discipline.

• Persistent uncertainty in North America due to tariffs and distributor caution; no expectation of worsening tariff impact.

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