Annual Report Sustainable Development Report ... - Groupe SEB

Comments on
the financial statements
Sales Groupe SEB sales for 2005 amounted to
€ 2,463 million, up 7.6% at current exchange rates and by 4.9%
at constant parity. These figures include a €102 million
contribution from recently acquired companies (All-Clad for
12 months – against 5 in 2004 – Lagostina for 8 months and
Panex for 7 months), as well as a positive exchange effect
of €58 million (after three years negative) and 0.6% organic
growth (for constant structure and exchange rates).
The Group saw sharp contrasts in the overall trading
environment in 2005. In Europe, sales were affected by the
rising influx of very cheap products from Asia, which led to
increased pressure on prices and margins. However, in North
and South America and in the other countries, Groupe SEB
made rapid progress thanks to its strategy of international
expansion and reinforcement of its presence in existing
markets. Meanwhile, we returned to growth in the United
CHANGE IN THE OPERATING MARGIN (OM)
(€ millions)
261
2004
OM
+ 20
Volume
sales
-18
Product
mix and
price
-10
Purchase
cost
-6
+9
|06
+6
Overheads Currency Acqui-
impact
sitions
262
2005
OM
States after three difficult years, while we continued to make
inroads in Latin America, bolster our positions in the CIS
countries, Japan, South Korea, Central Europe and Australia,
and accelerate our expansion in new markets such as Thailand,
China and Singapore.
Trading results
The 2005 operating margin (based on IFR Standards)
stood at €262 million – virtually the same level as in 2004.
For constant structure (excluding a €6 million contribution
from recent acquisitions), the figure would have been
€256 million. This is explained by eroded profits on our
European sales due to downward pressure on prices caused
by growing competition from cheap Asian products (especially
in certain banalised ranges) and the gaining strength and
geographic spread of discount chains promoting cut-price
products.