Reuters
Reuters(The author is a Reuters Breakingviews columnist. The opinions expressed are their own.)
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AMUSE-BOUCHE. Gallic chefs know how to serve up a storm. Paris-listed SEB 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 and U.S.-listed Newell Brands. Shareholders may have more tasty appetisers to come. (By Christopher Thompson)
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