The French small household appliance giant SEB on Tuesday revised upwards its sales target for the whole of 2021, after a better-than-expected third quarter, despite difficulties on its supplies.
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"We have some tensions on the supply of components (...) but we have taken the right measures to anticipate,"
Stanislas de Gramont, deputy managing director, said on Tuesday during a conference call. SEB explains that it has prepared itself to face these problems:
"we prefer to produce a little more and have a higher stock rather than being in short supply"
in the times to come, explained Nathalie Lomon, deputy general manager of the group. . This policy, which has increased its debt, could lead to a further rise in prices
"if the situation deteriorates in 2022"
, she added.
These additional costs, which relate in particular to raw materials, electronic components and freight, had already led the group to announce in July a price increase of around 5% to 10%.
9.1% increase in sales
In the third quarter, sales increased by 9.1%, to nearly 2 billion euros (+ 6.4% at constant exchange rates and perimeters). SEB, owner of the Krups, Moulinex and Tefal brands, saw its sales stabilize in the second quarter of 2021, reaching 1.76 billion euros. In the first nine months of 2021, its turnover climbed 18.2% to 5.6 billion euros. The company now expects an increase of about 14% of its annual turnover, against an increase of more than 10% anticipated so far, according to a press release.
The prospect of an operating margin for 2021 is maintained
"close to 10%"
, despite the higher than expected additional costs for supplies.
The group estimates them at 300 million euros now, against more than 250 million at the end of July.