Tefal maker SEB cuts annual profit forecast as demand weakens, shares drop 22%

By Gianluca Lo Nostro (Reuters) -Shares of Tefal pan manufacturer SEB plunged more than 22% on Monday after it cut its annual profit and sales forecast, saying business has been slower than expected in Europe and a "wait and see" attitude among U.S. consumers and business clients has significantly impacted the company. SEB, which also makes Rowenta irons and Krups coffee machines, slashed its annual operating profit forecast to between 550 million euros and 600 million euros ($702.90 million), from 700 million to 750 million euros ($878.63 million) previously. Consumers in the euro zone have reduced their spending on non-essentials, according to a European Central Bank survey published in September. Consumer confidence in France has also dropped to its lowest level in nearly two years. SEB said sales growth in 2025 will be stable to slightly positive, having previously forecast growth of between 2% and 4%.  Better sales in Asia and South America and successful recent product launches are not sufficient to offset the negative trends in Europe and the U.S., the company said in a statement. Western Europe accounted for 35% of SEB's consumer sales in 2024. SEB's shares were down 22.7% in early Paris trading. The stock gained during the pandemic as lockdowns drove a surge in home cooking but has since fallen back. It has lost around 25% of its value since the start of this year. The French group expects a "slight" decline in third-quarter sales, set to be reported on October 23. The company had already lowered its annual sales growth forecast in July, but said at the time that it expected a rebound in the second half of the year despite U.S. tariffs on imports creating uncertainty over consumer demand. ($1 = 0.8536 euros) (Reporting by Gianluca Lo Nostro; Editing by Helen Reid)

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