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12
FUNDAMENTALS
Satisfactory level
of sales
In a year marked by a deterioration in the economic environment,
Groupe SEB reported revenue of €4,060 million in 2012, up 2.4%
as reported and down 0.9% like-for-like (i.e. at constant exchange rates and
based on a comparable scope of consolidation).
This represented a satisfactory performance in a sluggish economic environment,
particularly considering the very high comparatives in 2010 and 2011
(when revenue grew 10% and 7% respectively).
The slight downturn in like-for-like revenue reflects several aspects:
- A reduction in volumes due to the slowdown in demand in several countries;
- A small positive impact of the price and product mix, with price rises in several
markets offset by competition and promotions in others;
- A perimeter effect of €20 million, including 2 additional months from Imusa
and 5 additional months for Asia Fan. The Group decided not to consolidate
its Indian subsidiary, Maharaja Whiteline, mostly because of a lack of reliability
in the company’s 2012 reporting at year end and the non-material impact of
the company on the Group’s financial indicators;
- Highly volatile exchange rates, which led to a €114 million positive currency
effect that was due to the euro’s decline against most of the Group’s
operating currencies, particularly the US dollar and the Chinese yuan.
Generally speaking, sales varied from one region to another in 2012: sharp
decrease in Europe; Asia Pacific was hit by the slowdown in China; business
was brisk in North America, Russia and the Middle East; upturn in South
America towards the end of the year.
In this contrasted environment, Group revenue declined by 2% in mature
markets (which accounted for 54% of 2012 revenue) and rose 1% in emerging
economies (46% of the total).
A measured decline in operating result from activity
Operating result from activity amounted to €415 million in 2012,
a decline of 8.7% from the previous year’s historical high (2011 restated figure),
which represented a challenging basis of comparison. The decline reflected
the net impact of several positive and negative factors:
- A negative volume effect, due to subdued sales and measures to draw down
inventories;
- A slightly negative impact from changes in the price and product mix,
reflecting tougher sales conditions during stock clearance operations.
- Savings arising from tight control over raw materials procurement processes
and a limited increase in product outsourcing costs;
- A steep reduction in operating costs that did not, however, affect spending
on growth drivers (research and development, advertising and marketing);
- A very unfavourable currency effect, including the strongly negative impact
on purchases of gains in the US dollar and the yuan against the euro.
Lower operating profit and net profit
Operating profit amounted to €368 million, down 8.6% in relation
to the restated figure for 2011. This was mainly due to an increase in
profit sharing (€48 million versus €44 million in 2011) including in particular
the impact of the higher “forfait social” tax in France and the Group’s matching
payments under last autumn’s employee shareholder plan. The financial result
amounted to a net expense of €63 million, including an increase in the financial
cost of debt – due to an increased average debt in 2012 compared to 2011 –
and to a provision for impairment of the shares of the Maharaja Whiteline
company.
Profit attributable to equity holders of the parent amounted to €194 million,
compared with €236 million in 2011.
A healthy financial position
At 31 December 2012, consolidated equity amounted to
€1,462 million and net debt at €556 million compared with €673 million one
year earlier. The decrease was due largely to the high level of cash generated
from operations and represents the best performance of the past three years.
These figures confirm Groupe SEB's robust financial position.
SucceSS of the Second SchuldSchein iSSue
(private placement regulated by german law)
Following a first successful transaction in 2008, Groupe SEB has benefited from a favourable window
of opportunity to repeat the experience.
In order to respond to significant over subscription, the initially targeted deal size of €100 million was increased to
€220 million with tranches of 3.5, 5 and 7 years. The transaction was very well received and attracted the interest
of a significant number of international investors (from Europe, Asia and South America), which reflects the
presence of Groupe SEB on all continents and the recognition of SEB’s quality name on the debt market.
The successful implementation of this new Schuldschein has strengthened the structure of Group financing by
extending debt maturity, diversifying its financing sources and broadening its investor base at an international
level.