SEB (SK) Q4 2024 earnings summary

Executive summary

• 2024 revenue reached €8.266 billion, up 5% organic and 3.2% reported, driven by innovation, strong Consumer segment growth, and strategic acquisitions in Professional Culinary and Coffee.

• Operating profit (ORFA) rose 10.5% to €802 million, with a 9.7% margin; adjusted net profit increased 9.3% to €422 million, while reported net profit was €230–232 million due to a French Competition Authority fine.

• Expansion included Sofilac and de Buyer acquisitions, new production and refurbishment centers, and a new Professional Coffee hub in China.

• ESG initiatives advanced, with SBTi Net Zero approval and significant progress on CO2 reduction, circular economy, and diversity targets.

• Free cash flow was €260 million, leverage stable at 1.8x EBITDA, and a dividend of €2.80 per share (+6.9%) is proposed.

Financial highlights

• Sales reached €8.266 billion (+3.2% reported, +5% organic/LFL), with negative currency impact of 2.6 points.

• Operating profit (ORFA) was €802 million (+10.5%), with a 9.7% margin (+60bps year-over-year).

• Adjusted net profit was €422 million (+9.3%), reported net profit €230–232 million, reflecting a €189.5–192 million provision for a regulatory fine.

• Net debt at year-end was €1.9 billion, leverage stable at 1.8x EBITDA.

• Proposed dividend of €2.80 per share, continuing a 15-year growth trend.

Outlook and guidance

• Confident in further organic sales and profit growth in 2025, supported by innovation and strong Consumer and Professional core business momentum.

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

• Cost base expected to remain stable; currency and shipping costs to have limited impact due to hedging and normalization.

• Seasonality and macroeconomic/geopolitical uncertainties remain key risks.