SEB (SK) Q4 2024 earnings summary

Executive summary

• Sales reached €8,266m in 2024, up 3.2% reported and 5% organic, driven by innovation and strong Consumer and Professional segment performance.

• Operating profit (ORfA) rose 10.5% to €802m, with operating margin improving to 9.7% from 9.1% in 2023.

• Adjusted net profit increased 9.3% to €422m, while reported net profit was €232m, impacted by a €189.5m provision for a French Competition Authority fine.

• Strategic acquisitions in Professional Culinary, including Sofilac and La Brigade de Buyer, and expansion in Professional Coffee with a new hub in China, reinforced market positions.

• ESG initiatives advanced, with SBTi Net Zero approval, progress on 2030 sustainability targets, and a new employee share ownership plan.

Financial highlights

• Sales grew to €8,266m (+3.2% reported, +5.0% LFL), with negative currency impact of 2.6 points.

• ORfA reached €802m (+10.5%), with operating margin at 9.7% (+60bps year-over-year).

• Adjusted net profit was €422m (+9.3%), while reported net profit was €232m, reflecting a €189.5m provision for a regulatory fine.

• Net debt at year-end was €1,926m, leverage stable at 1.8x EBITDA.

• Proposed dividend of €2.80 per share, a 6.9% increase year-over-year, with a 10% loyalty premium for long-term shareholders.

Outlook and guidance

• Confident in delivering another year of organic sales and profit growth in 2025, despite macroeconomic and geopolitical uncertainties.

• No quantitative guidance provided, but trajectory toward 11% operating margin remains valid.

• Expects continued buoyancy in end markets, supported by new product launches and innovation.