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Investing.com -- Shares of French small appliances group Groupe SEB (EPA:SEBF) sank more than 21% on Monday after the company lowered its full-year 2025 operating profit forecast to between €550 million and €600 million, down sharply from a prior range of €700 million to €750 million, citing weaker demand in Europe and the United States.
The revision, announced ahead of the group’s third-quarter results due October 23, also cut its organic sales growth outlook for 2025 to “stable to slightly positive,” compared with a previous target of 2% to 4%.
Analysts at UBS noted the new guidance is below both the company’s earlier expectations and consensus estimates, which had placed organic sales growth at 2.7% and the operating result from activity (ORFA) at €715 million.
The midpoint of Groupe SEB’s new ORFA guidance represents a roughly 20% reduction from its prior outlook.
Groupe SEB said the revision reflects softer-than-expected business in Europe and a continued “wait-and-see attitude” among Consumer and Professional customers in the United States in recent weeks.
The company noted that while recent product launches have been successful, and there is continued good momentum in several European markets, as well as solid performance in Asia and improvement in South America, these factors were not sufficient in the short term to offset weaker demand in Europe and the U.S.
For the third quarter, the company said it now expects a slight organic sales decline, resulting in results lower than previously forecast.
Groupe SEB said it will intensify efficiency efforts and is relying on its product innovation pipeline for 2025 and 2026.
UBS analysts highlighted that the new FY25 guidance, stable to slightly positive organic sales growth and ORFA of €550 million to €600 million, is a significant revision compared with previous forecasts and consensus estimates, and reflects the impact of weaker Europe and U.S. demand.