Coffee Service

Commercial sector posts bright spot for Groupe SEB amid Q1 2023 sales fall

Image: Adobe Stock.

April 28, 2023

Groupe SEB, a France-based multinational that owns Montebellow, California-based Wilbur Curtis Co., along with other coffee equipment brands, suffered a sales decline in Q1 2023 over the prior year period, although professional sales posted a healthy gain, according to a financial report. Highlights include:

• Sales declined 4.9% from €1.915 billion ($2.11 billion) to €1.82 billion ($2.01 billion), down 3.7% like-for-like. With sales reaching a low point in the third quarter of 2022 and on the back of a fourth-quarter demonstrating sequential improvement, the first quarter of 2023 was characterized by a further easing of the contraction in business activity.
• Professional sales rose 34.1% from €156 million ($172.11 million) to €209 million ($230.59 million) in the comparative quarters, 29% LFL, propelled by operating regions across the board — namely China, North America and Europe — as well as new machine sales contracts and maintenance and repair services.
• Consumer sales fell 8.4% to €1.613 billion ($1.78 billion). The consumer business was penalized in several of the key markets including France, Germany and the U.S.
• First-quarter sales in North America fell 17.6% from €174 million ($191.97 million) to €143 million ($157.77 million), mainly driven by the unfavorable effect of a strong U.S. dollar and Mexican peso.
• South America sales fell 0.8% from €69 million ($69 million) to €70 million. ($77.23 million).
• Western Europe sales fell 9.9% from €582 million ($582 million) to €524 million ($578.12 million).
• China sales fell 7.4% from €569 million ($627.77 million) to €527 million ($581.43 million).
• Asia excluding China sales fell 15.3% from €134 million ($147.84 million) to €113 million ($124.67 million).

Shares traded at €103.80 ($114.52) today against a 52-week range of €55.20 ($60.90) to €122 ($134.60).

"We are particularly pleased with the robust growth in the professional business across all its markets," CEO Stanislas de Gramont said in the press release. "Strengthened by the acquisition of La San Marco in February, this segment is an important driver of the group's future growth."

For the year 2023, the company is reiterating the targets announced as part of its 2022 full-year results publication. The company anticipates a progressive recovery in its consumer sales and a strong growth in its professional revenue.