SEB Group Records Minimal Organic Growth and Declining Profitability in 2025
SEB Group has released its annual results for 2025, showing nearly stagnant organic sales growth of 0.3% and a significant decrease in operating profit activity. The ROPA stood at 601 million euros, down 25% year-on-year, affected by major cyclical disruptions.
Annual Financial Performance
SEB Group's annual revenue reached 8,169 million euros in 2025, with an organic growth of only 0.3% at constant exchange rates and scope, despite a 1.2% decline in reported data. This growth includes a positive scope effect of 1.0%, while currency fluctuations had a negative impact of 2.5%. The Operating Activity Result fell to 601 million euros from 802 million in 2024, reflecting an operating margin of 7.4% of sales, down from the previous year's 9.7%. This contraction of the ROPA is explained by several cyclical factors: the appreciation of the euro and the volatility of emerging country currencies led to a negative impact of nearly 40 million euros, direct and indirect effects of tariffs in the United States resulted in a decrease of about 40 million euros in results in North America, and the high historical level of the first half of 2024 in professional coffee explains a decline in contribution of 40 million euros, concentrated in the first six months. These effects gradually eased during the fourth quarter.
Divisional Performance
The Consumer Division, which represents 7,175 million euros in sales, recorded an organic growth of 1.1%. In Western Europe, sales increased by 1.0% at constant exchange rates, supported by nearly all Western markets except Germany. The Asia zone shows a return to organic growth of 2.7%, driven particularly by China which increased by 2.7%. Conversely, the Americas declined by 4.9% at constant exchange rates, mainly due to tariffs and the impact of the La Niña weather phenomenon on fan sales in South America. By product line, the dynamic remains favorable in cookware and kitchen utensils, floor care, and laundry care. Online sales grew by about 10% at constant exchange rates, driven particularly by Direct to Consumer. The Professional Division recorded an organic decrease of 5.9%, penalized by a high comparison base in the first half of 2024 in professional coffee, although activity stabilized in the second half of 2025. In the fourth quarter, the group generated 334 million euros of ROPA with an operating margin of 13.3%.
Net Results and Financial Position
The net result attributable to the group was established at 245 million euros, up 5.6% compared to 232 million euros in 2024. This improvement occurred despite a decrease in operating income to 502 million euros from 540 million in 2024. The annual free cash flow reached 124 million euros, significantly lower than the 260 million euros in 2024, incorporating a consumption of 213 million euros in the first half followed by a generation of 337 million in the second half. This variation is attributed to an increase in working capital needs of 104 million euros and physical investments of 182 million euros. The net debt as of December 31, 2025, amounted to 2,342 million euros, up by 416 million euros, explained by the decline in ROPA, acquisitions for 121 million euros including La Brigade de Buyer, the payment of 189.5 million euros as a fine from the Competition Authority, and dividends paid for 207 million euros. The net debt to adjusted EBITDA ratio stands at 2.7x. The board of directors proposes a stable dividend of 2.80 euros per share, increased to 3.08 euros for registered shareholders for at least two years.
