SEB (SK) Q1 2025 earnings summary

Executive summary

• Q1 2025 sales were €1,906m, down 0.6% like-for-like and up 0.7% reported, with Consumer business showing strong momentum and China returning to growth (+3.5% LFL).

• Professional segment declined sharply (-21.7% LFL) due to a high comparison base, but improvement is expected from Q2 2025.

• First consolidation of La Brigade de Buyer and bolt-on acquisitions in China expanded the group's portfolio and after-sales services.

• Strategic investments continued in China, including a new production hub in Shaoxing (€60m, production start Q1 2026).

Financial highlights

• Q1 2025 revenue: €1,906m (-0.6% LFL, +0.7% reported); Consumer sales grew +2.8% LFL (+2.2% reported), Professional sales declined -21.7% LFL (-9.2% reported).

• Operating Result from Activity (ORFA) was €50m, down 54.5% year-over-year; margin at 2.6%, down from 5.8%.

• Currency impact on sales was minor at -€7m (-0.4%), much lower than Q1 2024.

• Recent acquisitions contributed +1.6% to sales.

Outlook and guidance

• Full-year 2025 organic sales growth expected around 5%, with an increase in ORFA as reported, barring significant macroeconomic deterioration.

• Sequential improvement in Professional business anticipated from Q2, with normalized growth in H2.

• Guidance incorporates tariff impacts, with mitigation strategies and ongoing monitoring of tariffs, currencies, and raw materials.