Capital Calls: SEB offers value entrée in pandemic kitchen
23/04/2021 10:34
(The author is a Reuters Breakingviews columnist. The opinions
expressed are their own.)
LONDON, April 23 (Reuters Breakingviews) - Concise insights
on global finance.
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AMUSE-BOUCHE. Gallic chefs know how to serve up a storm.
Paris-listed SEB SEBF.PA is no different. Shares in the 8
billion euro cookware maker jumped by 6% on Friday, prompted https://www.groupeseb.com/sites/default/files/2021-04/PR-GroupeSEB-First-quarter%202021%20sales%20and%20financial%20data-22042021.pdf
by a surge in wannabe pasta and bread makers during lockdowns.
First-quarter revenue rose to 1.9 billion euros – 31% higher
than in the same period last year, more than offsetting a sharp
fall in demand from professional cooks. The owner of the Tefal
and Moulinex brands raised its full-year sales guidance to a
soufflé-like 10% rise.
The boom in amateur cookery may well have longer to run as
restaurants struggle to reopen. If boss Thierry de La Tour
d’Artaise meets his top-line aim, then SEB should produce about
760 million euros in operating profit, assuming a 10% operating
margin. On that basis the shares, which including debt are
valued at 13 times forward operating profit, still trade at a
discount to Italy’s De’Longhi DLG.MI and U.S.-listed Newell
Brands NWL.O . Shareholders may have more tasty appetisers to
come. (By Christopher Thompson)
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