Groupe SEB, provisional sales

ECULLY, France - (BUSINESS WIRE) - Groupe SEB (Paris:SK)(ISIN:FR0000121709):

IFRS

                                                           %
                                                         change
         (in EUR  millions)                         ==================
                                                    Current  Constant
                                                    exchange  exchange
                                       2005   2006    rates    rates
===================================== ====== ====== ======== =========
France                                  591    595    + 0.6     + 0.6
===================================== ====== ====== ======== =========
Other EU countries                      677    691     +2.1     + 2.0
===================================== ====== ====== ======== =========
North America                           352    390   + 11.0    + 11.5
===================================== ====== ====== ======== =========
South America                           204    246   + 20.7    + 16.8
===================================== ====== ====== ======== =========
Central Europe, CIS, Asia and other
 countries                              639    729   + 14.0    + 16.2
===================================== ====== ====== ======== =========
TOTAL                                 2,463  2,651    + 7.6     + 7.9
===================================== ====== ====== ======== =========
                                      Rounded       Percentages based
                                       figures       on exact figures
  

For Groupe SEB, 2006 marked a return to robust growth. Consolidated sales totalled EUR 2,651 million, an increase of 7.6% at current exchange rates and 7.9% at constant exchange rates. This performance includes:

-- 5.4% organic growth over the year, with a 6.5% rise in the fourth quarter, significantly outperforming the last three months of 2005;

-- the full-year contribution of businesses acquired in 2005 (representing an extra 4 months' sales for Lagostina and 5 months' sales for Panex), and the consolidation over the last four-and-a-half months of newly-acquired Mirro WearEver, based in the USA. In all, these changes in scope of consolidation added EUR 63 million to reported sales;

-- a EUR 7 million unfavourable currency effect, reflecting the euro's appreciation against virtually all of the Group's functional currencies, particularly in the fourth quarter.

The significant improvement in organic growth, after several flat years, is primarily attributable to the Group's continued rapid international expansion, accompanied this year by an upswing in Europe.

In France, sales ended the year above their 2005 level, reflecting a stronger second half compared with the first six months. In the generally more favourable environment, prices in the small domestic equipment market held up better than in the previous years and product mix improved again, as consumers showed a renewed interest in established brands. Groupe SEB enjoyed brisk sales of cookware, hair care appliances and espresso coffee machines, while the successful launches of Beertender, Actifry, an oil-free fryer, new breadmakers and the Intens vacuum cleaner helped to drive momentum.

Elsewhere in the 15-country European Union, sales growth was led by the extra 4 months' contribution by Lagostina. Based on a comparable scope of consolidation and constant exchange rates, sales were unchanged from 2005, representing a reversal of the trend observed in previous years. The situation continued to vary, however, from one country to another. In Germany, the overall environment improved and the modest decline in sales was entirely attributable to the absence of promotional offers by discount stores, while sales via all other channels increased. In the United Kingdom, the Group chose to preserve its margins in the face of heavy pricing pressure from certain retailers, leading to a fall in unit sales. Business held firm in Italy and Belgium and rose in substantially all other countries, led by Austria, Spain, Greece and Portugal.

In North America, turnover rose 12.9% at constant exchange rates, including a EUR 25 million contribution from US-based Mirro WearEver, which was consolidated as from mid-August. Based on a comparable scope of consolidation and at constant exchange rates, North American sales were 3.8% higher. Organic growth in the United States came to 3.3%, reflecting less buoyant conditions in the latter part of the year compared with the first half. The various brands performed unevenly. All-Clad continued to expand rapidly, sustained by strong demand for premium products, and Rowenta's successful new irons helped to strengthen the brand's market position. T-Fal turned in an erratic performance, however, in a highly competitive environment, while Krups was less successful than expected, particularly its coffee machines, leading to a sharp drop in sales. Sales in Mexico and Canada grew.

In South America, growth at comparable scope of consolidation and constant exchange rates amounted to 8.1%, reflecting the generally buoyant conditions in the region's markets. In Brazil, sales remained brisk throughout the year, despite the unfavourable impact of the strong real on Arno's sales. Growth was led by high consumer spending and by successful new product launches, including filter coffeemakers, blenders, mixers and personal care appliances. Seasonal demand for electric fans was strong and the new vacuum cleaner models proved to be a hit in the market. Sales of Panex's revamped product ranges were in line with budget. Excluding Brazil, sales dynamics in South America was led primarily by Venezuela and Colombia, two extremely fast growing markets.

In Central Europe, CIS, Asia and other countries, which together account for over 27% of consolidated sales, organic growth came to 16%, helped by a very good fourth quarter all round. Except for South Korea, sales increased in all markets, despite the fall in substantially all local currencies against the euro:

-- in Central Europe, where demand remains as strong as ever;

-- in the CIS, helped by continued sustained growth in Ukraine;

-- in Turkey, despite a difficult year shaped by a number of unfavourable events;

-- in Japan, where growth was driven primarily by the outstanding success of the electric kettle range;

-- in Australia, led by significant advances in cookware sales;

-- in China and the "new markets" (including Singapore, Thailand and Malaysia), where the Group is currently laying the foundations for future growth.