Groupe SEB: 2024 - Sustained Growth and Results Improvement

In the dynamic and ever-evolving landscape of the global home appliance market, one company has consistently stood out for its resilience, innovation, and strategic acumen: Groupe SEB. As we look back at the year 2024, it's clear that the company's long-term strategy of combining growth and competitiveness has paid off, with impressive results and a strong outlook for the future.

Groupe SEB's two complementary visions - favoring organic growth and sharpening its competitive edge - have been the driving forces behind its sustained growth in 2024. By investing in innovation, expanding into emerging markets, and optimizing its operations, the company has not only weathered economic uncertainty but also emerged stronger and more competitive.



Favoring Organic Growth

Groupe SEB's commitment to organic growth has been a significant factor in its success. The company has consistently reinvested in innovation, with 3.3% of sales reinvested in 2020 alone. This investment has led to the development of new products and technologies, such as the MetaPlayHome® game console, which is set for a worldwide release in mid-2022. The company's organic growth strategy has also been evident in its expansion into emerging markets, where it has established its own structures to spread its presence and offer a range of products tailored to local needs.

Sharpening Its Competitive Edge

Groupe SEB's focus on sharpening its competitive edge has been equally crucial to its success. The company has continuously adapted and improved its production base, logistics, and information systems to maintain a competitive edge. This has resulted in a powerful and competitive production base that has been developed over the years. Additionally, the company has implemented strict control of operating costs, including simplified structures and pooled support services. This has led to an optimized purchasing policy and continuous improvement in the supply chain, contributing to controlled working capital requirements.



International Expansion and Emerging Markets

Groupe SEB's international expansion, particularly in emerging markets, has been a significant driver of its growth. The company has successfully expanded into these markets, which have fueled overall growth and provided a degree of protection against economic uncertainty. Emerging countries are characterized by intense consumption, with rising consumption in these economies outpacing that of developed countries by 40% in 2010 (source: sg Gross Asset Research).

The company's strategy in these markets has been twofold: organic growth and external growth. Through organic growth, the company has spread its presence through its own structures, such as representation offices or commercial subsidiaries, depending on the business volume. This approach has allowed the company to construct its offering in stages, resulting in multiple families of products, from cookware and irons to electric preparation or cooking products, and eventually to personal care products. This strategy has been implemented in markets such as Turkey and Russia, where the company has a long-standing presence.

Through external growth, the company has acquired leading companies in their respective sectors in these emerging markets. For example, the company acquired Arno and Panex in Brazil, volmo and Imusa in Colombia, Supor in China, and Asia Fan in Vietnam. These acquisitions have provided the company with rapid market access, a solid local foundation, and the ability to share know-how and synergies. This strategy has also enabled the company to lay the foundation for long-lasting development in larger territories such as South America and Southeast Asia.

In 2024, despite a challenging macroeconomic and geopolitical context, Groupe SEB's revenues have consistently hovered around eight billion euros, demonstrating the company's resilience and sustained growth. The company expects more widespread growth in mature France and Japan and a gradual year-round recovery in China despite the slow economic recovery.

In conclusion, Groupe SEB's strategic focus on organic growth and sharpening its competitive edge has been instrumental in its sustained growth and improved operating results in 2024. The company's commitment to innovation, investment, and strategic acquisitions has allowed it to take full advantage of strong structural demand, creating growth opportunities for Groupe SEB. As we look ahead, the company remains well-positioned to continue its growth trajectory and deliver value to its shareholders.