BIC: SECOND QUARTER & FIRST HALF 2024 RESULTS
Clichy, France – July 31, 2024
SECOND QUARTER & FIRST HALF 2024
RESULTS
H1 2024 Net sales growth at constant
currency excl. Argentina of -0.5%
Resilient Adjusted EBIT margin at
14.9%
H1 2024 Net Sales of €1,139 million,
down by -0.5% at constant currency excl. Argentina, with negative
performance in North America, partially offset by strong growth of
7% across the rest of the Group:
-
Human Expression: Net Sales of €453 million, +2.3%
at constant currency excl. Argentina, driven by robust performance
in Europe, Mexico and Middle East and Africa
-
Flame for Life: Net Sales of €402 million, -5.8%
at constant currency excl. Argentina, with negative performance in
North America, showing a sequential improvement in Q2, partially
offset by continued strong growth in Europe and Brazil
-
Blade Excellence: Net Sales of €271 million, +3.5%
at constant currency excl. Argentina, notably driven by solid
growth in Europe, Latin America and Middle East and Africa
Adjusted EBIT of €170 million,
representing an aEBIT margin of 14.9% (flat vs H1 2023),
with gross profit margin improvement1 offset by negative
net sales operating leverage
Adjusted EPS of €2.95, slightly
up versus H1 2023 (€2.93)
Free Cash Flow generation of €37
million, an increase of €34 million from prior year
Key Group financial figures
in million euros |
Q2 2023 |
Q2 2024 |
H1 2023 |
H1 2024 |
Group Net Sales |
638.2 |
617.8 |
1,176.9 |
1,139.4 |
Change as reported |
+4.4% |
(3.2) % |
+4.4% |
(3.2) % |
Change on a constant currency basis
excl. Argentina |
+6.9% |
(0.9) % |
+4.4% |
(0.5) % |
Change on a constant currency basis |
+9.3% |
+1.1% |
+7.0% |
+3.3% |
|
|
|
|
|
Adjusted EBIT |
105.0 |
107.4 |
175.1 |
170.2 |
Adjusted EBIT Margin |
16.5% |
17.4% |
14.9% |
14.9% |
|
|
|
|
|
EPS |
1.64 |
1.85 |
2.81 |
2.67 |
Adjusted EPS |
1.76 |
1.92 |
2.93 |
2.95 |
|
|
|
|
|
Free Cash Flow (before acquisitions and
disposals) |
36.4 |
13.2 |
2.5 |
36.9 |
Net Cash Position |
197.6 |
261.8 |
197.6 |
261.8 |
Gonzalve Bich, BIC’s Chief Executive Officer
commented:
“The first half of 2024 was marked by an
unstable macroeconomic and political environment across the globe,
and notably in the US, where the deteriorating consumption trends
impacted our performance. Across the rest of the Group, BIC remains
well positioned to capitalize on growth opportunities with strong
net sales growth during the first half.
In this context, it is imperative to
continue to focus on what we can control by doubling down on our
effort to deliver our strategic plan. In addition, we are adapting
our cost structure to the current challenging business environment
while amplifying our commercial and operational strengths.
Revenue Growth Management continued to
deliver amidst our net sales decline, resulting in a 12% reduction
of total SKU count versus last year. Our digital capabilities
continue to have a strong impact, with core e-commerce net sales
growing double-digit in H1. We also continue to deliver on
our sustainability commitments, particularly contributing to our
goal of improving learning conditions for 250 million students by
2025.
As we look up to the end of the year, we
confirm our outlook for 2024.”
2024 Outlook (based on current market
assumptions2)
Full Year 2024 Net Sales are
expected to grow low single digit at constant currency3.
We expect to see a slight improvement in 2024 adjusted EBIT
margin. We will continue to drive EBIT expansion to
deliver long-term profitable growth, in line with our 2025 targets.
Free Cash Flow is expected to be above €220
million in 2024.
H1 2024 key highlights
in million
euros |
Q2 2023 |
Q2 2024 |
H1 2023 |
H1 2024 |
Net Sales |
638.2 |
617.8 |
1,176.9 |
1,139.4 |
Gross Profit |
312.7 |
305.0 |
580.8 |
562.2 |
Gross Profit margin |
49.0% |
49.4% |
49.3% |
49.3% |
EBITDA |
128.3 |
131.3 |
224.1 |
202.0 |
EBIT |
102.8 |
99.5 |
174.7 |
154.5 |
EBIT margin |
16.1% |
16.1% |
14.8% |
13.6% |
Non-recurring items |
2.2 |
7.8 |
0.4 |
15.6 |
Adjusted EBIT |
105.0 |
107.4 |
175.1 |
170.2 |
Adjusted EBIT margin |
16.5% |
17.4% |
14.9% |
14.9% |
H1 2024 net sales decreased by
0.5% at constant currency3 due to the negative
performance of the Flame for Life division, impacted by a stronger
than expected lighter market decline in the US, resulting from the
deteriorating consumption trends. This was partially offset by
strong growth in the rest of the world thanks to robust execution
and distribution gains coupled with geographical expansion.
Q2 2024 net sales decreased by
0.9% at constant currency3 driven by negative
performance in North America, mainly impacted by the US market
deterioration in our 3 divisions. This more than offset solid
growth in other key regions. Human Expression net sales grew by
1.3% at constant currency3, driven by Europe and Middle
East and Africa. The performance of Flame for Life improved in Q2,
at -3.6% at constant currency2 (vs -7.8% in Q1 2024),
marked by a sequential improvement in the US and continued good
performance in Europe and Brazil. In Blade Excellence, growth at
constant currency3 in Q2 was negative at -1.0%, due to
an unfavorable comparable basis (+16.8% in Q2 2023).
H1 2024 gross profit margin was stable
vs H1 2023 at 49.3% of net sales, totaling €562 million. Excluding
the special bonus and the fair value adjustment on the Power
Purchase Agreement in
France4, H1 2024 gross
profit margin increased by 60bps to 49.9%, driven by
favorable price and mix, currency fluctuations and manufacturing
efficiencies. This was partially offset by higher raw material
costs notably in the lighter business and unfavorable fixed cost
absorption.
H1 2024 adjusted EBIT margin was flat
compared to H1 2023, at 14.9%, amounting to €170 million.
This resulted from gross profit margin improvement, offset by
negative net sales operating leverage.
Q2 2024 gross profit margin increased
from 49.0% in Q2 2023 to 49.4% in Q2 2024. Excluding the fair value
adjustment on the Power Purchase Agreement in France, Q2 2024 gross
profit margin increased by 80bps to 50.2%, driven by
favorable price and mix, currency fluctuations, and manufacturing
efficiencies. This was partially offset by unfavorable fixed cost
absorption.
Q2 2024 adjusted EBIT margin was 17.4%,
up by 90bps year-on-year, mainly due to gross profit
margin improvement. Adjusted EBIT also improved in value,
at €107 million (+2.1% vs Q2 2023).
Key components of the change in adjusted
EBIT margin
Key
components of the change in adjusted EBIT margin
(in points) |
Q1 2024 vs. Q1 2023 |
Q2 2024 vs. Q2 2023 |
H1 2024 vs. H1 2023 |
· Change in Gross
Profit* |
+0.5 |
+0.8 |
+0.6 |
· Brand Support |
(0.1) |
0.0 |
0.0 |
· Operating expenses and
other expenses* |
(1.4) |
+0.1 |
(0.6) |
Total change in Adjusted EBIT margin |
(1.0) |
+0.9 |
0.0 |
* Excluding the special bonus in Q1 and France PPA in Q2
Net income and earnings per share (EPS)
in million euros |
Q2 2023 |
Q2 2024 |
H1 2023 |
H1 2024 |
EBIT |
102.8 |
99.5 |
174.7 |
154.5 |
Finance revenue/costs |
(4.3) |
8.0 |
(5.5) |
0.2 |
Income before Tax |
98.5 |
107.5 |
169.2 |
154.7 |
Net Income Group share |
70.8 |
77.2 |
121.6 |
111.4 |
Adjusted Net Income Group Share |
76.0 |
80.1 |
126.8 |
123.4 |
Adjusted EPS Group Share (in euros) |
1.76 |
1.92 |
2.93 |
2.95 |
EPS Group Share (in euros) |
1.64 |
1.85 |
2.81 |
2.67 |
H1 2024 finance revenue/costs
was at €0.2 million vs. -€5.5 million in H1 2023 mainly driven by
the strong favorable impact of the fair value adjustments to
financial assets denominated in US Dollar against the Brazilian
Real in H1 2024.
H1 2024 effective tax rate was
28.0% vs. 28.1% in H1 2023.
Change in net cash position
Change
in net cash position (in million euros) |
H1 2023 |
H1 2024 |
Net Cash position (as of end of December) |
359.9 |
385.4 |
Net cash from operating activities |
+45.3 |
+68.5 |
· Of which operating
cash flow |
+240.6 |
+228.0 |
· Of which change in
working capital |
(154.8) |
(105.2) |
·
Others5 |
(40.5) |
(54.3) |
Capital expenditures6 |
(42.8) |
(31.6) |
Dividend payment |
(110.2) |
(119.1) |
Share buyback program7 |
(60.4) |
(29.4) |
Net cash from the liquidity contract |
(0.8) |
(0.3) |
Other items |
+6.6 |
(11.7) |
Net Cash position (as of end of June) |
197.6 |
261.8 |
Operating Cash flow was €228
million resulting from good business performance. The €105
million negative change in working capital and others was mainly
driven by higher trade and other receivables of €162 million linked
to back-to-school seasonality. As a result, H1 2024 Free
Cash Flow (before acquisitions and disposals) was €37
million.
At the end of June 2024, Net Cash
position was €262 million.
Update on our 2025 Horizon Strategic Plan
During H1 2024, we made progress on our 2025 Horizon
strategic objectives:
- BIC continued to focus on solid
execution and launch of innovative advertising
campaigns including for the utility pocket lighter EZ
Reach in Europe and in the US, and for the new utility lighter EZ
Load in the US. In Brazil, we boosted our market presence with our
Soleil Escape shaver communication plan as well as our latest
iconic 4-Color pen campaign, both driving sales growth and
solidifying our leadership positions. We also launched in Brazil
the EZ Reach lighter communication campaign to engage audience
through online media and influencers, contributing to solid results
and shares gains. Lastly in the US, the Djeep Lighters DJ Khaled
campaign “Ignite Your Passion” got off to a strong start in Q2,
with over 2 billion impressions.
- Our core eCommerce
sales posted double-digit growth in H1 2024, driven mostly by North
America and Europe (France, UK and Spain). We successfully gained
market share in the US in Stationery and Shavers as well as in
France and the UK. Key products contributing to growth included
Mechanical Pencils, Ball Pen and Correction as well as added value
products such as Soleil Escape shaver.
- Our Revenue Growth
Management strategy continued to deliver net sales per SKU
growth of 14% during H1, through price and value-accretive mix
management, while engaging with consumers through optimized
promotions. We also continued to prioritize the streamlining of our
product offerings to better meet consumer and customer needs, with
a successful reduction of our total SKUs by 12% in H1, ahead of our
full-year SKU rationalization target.
Operational Trends by Division
Human Expression
in million euros |
Q2 2023 |
Q2 2024 |
H1 2023 |
H1 2024 |
Volumes in million units |
- |
- |
3,306 |
3,212 |
% change |
- |
- |
(6.1) % |
(2.8) % |
Net Sales |
282.9 |
278.7 |
460.3 |
452.5 |
Change as reported |
+4.9% |
(1.5) % |
+5.1% |
(1.7) % |
Change on a constant currency basis
excluding Argentina |
+6.7% |
+1.3% |
+5.4% |
+2.3% |
Change on a constant currency basis |
+9.5% |
+2.3% |
+9.1% |
+6.1% |
|
|
|
|
|
Adjusted EBIT |
42.2 |
42.6 |
44.6 |
51.8 |
Adjusted EBIT Margin |
14.9% |
15.3% |
9.7% |
11.4% |
H1 2024 Human Expression net
sales grew by 2.3% at constant currency excluding Argentina driven
by strong growth in Europe, Middle East and Africa and Mexico,
partially offset by softer performance in North America, Brazil and
India.
In Europe, performance remained
strong with high single digit growth, further consolidating our
market leadership. Growth was fueled by all geographies and all
channels, with strong distribution gains in both Western and
Eastern Europe. BIC’s iconic 4-Color pen continued to be the main
growth driver across Europe. The expansion of our distribution
network towards discounters and eCommerce is particularly
successful, with more products available in-store and a strong
increase in demand for decorated and personalized products. Core
products such as ball pen and correction also contributed to
growth.
In the US, net sales were
impacted by negative market trends. However, this was partially
offset by the performance from core products, notably Mechanical
Pencils and Ball Pen, as well as added value products such as Gel.
BIC maintained its market share in both volume and value, driven by
eCommerce, in a market declining by 4.2% in value and 4.7% in
volume8.
In Latin America, net sales
performance was solid in Mexico. Growth came from both core, such
as Ball Pen, and added-value segments, such as Marking and
Coloring. This was partially offset by a softer performance in
Brazil due to a challenging competitive environment in the modern
mass market.
In Middle East and Africa, net
sales grew strongly, notably driven by good performance of Lucky
pen items in Nigeria, positive pricing and higher volumes in South
Africa, as well as distribution gains in Kenya.
In H1 2024, the Human Expression
division’s adjusted EBIT margin increased by 170 bps to
11.4%, driven by significant gross profit improvement,
with favorable pricing and mix, currency fluctuations, as well as
lower brand support investments. This was partially offset by
unfavorable fixed cost absorption and higher electricity costs.
In Q2 2024, adjusted EBIT margin for the
division improved by 40bps, at 15.3%, resulting from lower
operating expenses and others and lower brand support investments.
This was partially offset by unfavorable fixed cost absorption and
higher electricity costs.
Flame for Life
in million euros |
Q2 2023 |
Q2 2024 |
H1 2023 |
H1 2024 |
Volumes in million units |
- |
- |
820 |
757 |
% change |
- |
- |
(3.6) % |
(7.7) % |
Net Sales |
205.8 |
195.0 |
434.3 |
402.1 |
Change as reported |
(1.8) % |
(5.2) % |
(0.4) % |
(7.4) % |
Change on a constant currency basis
excluding Argentina |
+0.9 % |
(3.6) % |
(0.9) % |
(5.8) % |
Change on a constant currency basis |
+2.8% |
(2.0) % |
+0.6% |
(3.8) % |
|
|
|
|
|
Adjusted EBIT |
69.2 |
63.2 |
153.1 |
126.5 |
Adjusted EBIT Margin |
33.6% |
32.4% |
35.3% |
31.5% |
H1 2024 Flame for Life net
sales decreased by 5.8% at constant currency excluding Argentina
driven by market decline in the US, only partially offset by strong
growth in Europe and Latin America.
In Europe, net sales growth was
solid, fueled by price, mix and volume. Product mix improved with
decorated lighters and premium Djeep lighters both growing
double-digit. We also expanded distribution, notably in the
discounters’ channel. Additionally, BIC’s EZ Reach marketing
campaigns started in H1 2024 in several countries including Greece,
Italy, Poland or Ireland, resulting in strong net sales growth in
those markets.
In the US, net sales were
negatively impacted by a stronger than expected market decline, due
to the deterioration of consumption trends, particularly in the
convenience channel. In an environment impacted by inflation and
geopolitical uncertainties, consumers remain cautious on their
spendings. However, we continued to focus on executing our trade-up
strategy with the ramp up of our recently launched EZ Load utility
lighter and the ongoing success of the EZ Reach utility pocket
lighter.
In Latin America, performance
was solid in Brazil with strong execution and distribution gains in
both pocket and utility lighters. EZ Reach continued to ramp-up
helped by impactful digital campaigns, enabling BIC to increase its
market share in the utility lighters segment.
In H1 2024, the Flame for Life’s
division adjusted EBIT margin was 31.5%, versus 35.3% in H1
2023. This decrease was mainly driven by higher raw
material costs, unfavorable fixed cost absorption and negative net
sales operating leverage in the US.
In Q2 2024, the Flame for Life’s
division adjusted EBIT margin was 32.4%, versus 33.6% in Q2
2023. This decrease was mainly driven by unfavorable fixed
cost absorption and negative Net Sales operating leverage in the
US.
Blade Excellence
in million euros |
Q2 2023 |
Q2 2024 |
H1 2023 |
H1 2024 |
Volumes in million units |
- |
- |
1,255 |
1,271 |
% change |
- |
- |
+3.5% |
+1.2% |
Net Sales |
143.6 |
138.5 |
268.3 |
271.0 |
Change as reported |
+13.3% |
(3.6) % |
+11.7% |
+1.0% |
Change on a constant currency basis
excluding Argentina |
+16.8% |
(1.0) % |
+11.9% |
+3.5% |
Change on a constant currency basis |
+19.7% |
+3.2% |
+14.7% |
+10.1% |
|
|
|
|
|
Adjusted EBIT |
14.8 |
24.5 |
20.5 |
38.3 |
Adjusted EBIT Margin |
10.3% |
17.7% |
7.6% |
14.1% |
H1 2024 Blade Excellence net
sales grew by 3.5% at constant currency excluding Argentina, with
most regions contributing to growth. This was nevertheless
partially offset by North America soft performance.
In Europe, BIC’s performance
continued to be strong, and became the number 2 player in the wet
shave market9. BIC successfully gained share in 9 out of
12 countries, boosted by its value for money proposition offering,
appealing to consumers in an inflationary environment. BIC also
continued to expand our footprint in Eastern Europe and in the
discounters’ channel, driven by added-value products such as the
BIC Hybrid Flex and BIC Click Soleil.
In the US, despite the solid
performance of key products such as Comfort 3, Flex 5 Hybrid and
Soleil Escape, net sales were negatively impacted by a challenging
consumer environment with demand contraction, affecting the
disposable shaver market (down -3.3% in value and -3.0% in volume
in H1)10.
In Latin America, robust growth
in Brazil was driven by the continued acceleration of the 3-blade
segment (notably Soleil Escape, BIC Comfort 3 and BIC Flex 3) as
well as our added-value Hybrid range, all supported by impactful
communication campaigns and new listings at top customers. In
Mexico, BIC managed to gain market share in value (+50
bps)11 in a market growing by more than 10%.
In Middle East and Africa, net
sales grew strongly driven by solid execution and distribution
gains notably in West and South Africa, while the Flex and Soleil
brands showed exponential growth in North African markets.
In H1 2024, Blade Excellence’s division
adjusted EBIT margin reached 14.1%, versus 7.6% in H1
2023, with a strong gross profit margin improvement driven
by favorable price and mix, fixed cost absorption as well as
manufacturing efficiencies.
In Q2 2024, adjusted EBIT margin for the
division was at 17.7%, versus 10.3% in Q2 2023, with a
strong gross profit margin improvement driven by favorable price
and mix, fixed cost absorption as well as manufacturing
efficiencies and lower electricity costs in Greece.
Governance
On July 31, the Board of Directors acknowledged
the resignation of Pascal Chevallier, one of the two Directors
representing the employees, in connection with the termination of
his functions at BIC, effective August 31. The Group Committee
("Comité de Groupe") will appoint a new Director
representing employees by the end of the year.
Appendix
2024 Market
Assumptions
Our 2024 outlook is based on the
following market
assumptions212:
Market trends (in value):
-
Europe:
- Low to
mid-single digit decrease in Stationery market;
- Low to
mid-single digit decrease for total pocket Lighter market;
- Flat to Low
single digit increase in Shavers market;
- US:
- Low to mid-single digit decrease in
Stationery market;
- Mid to high-single digit decrease
for total pocket Lighter market13;
- Flat to Low-single digit decrease
in the total one-piece Shaver market;
- Latin
America:
- Low to
mid-single digit increase in Stationery market;
- Mid to
high-single digit increase for total pocket Lighter market;
- Mid to
high-single digit increase in Shavers market;
-
India: Mid to high-single-digit increase in
Stationery market.
Currency: 2024 EUR/USD hedging
rate: 1.08
Net sales by geography
Q2 net
sales by geography (in million euros) |
Q2 2023 |
Q2 2024 |
% As reported |
% at constant currency |
% On a comparative basis |
Group |
638.2 |
617.8 |
(3.2)% |
+1.1% |
(0.9)% |
Europe |
202.3 |
212.4 |
+5.0% |
+7.7% |
+7.7% |
North America |
259.1 |
233.3 |
(10.0)% |
(10.8)% |
(10.8)% |
Latin America |
112.2 |
107.4 |
(4.2)% |
+12.8% |
+2.2% |
Middle East and Africa |
41.0 |
40.9 |
(0.1)% |
+10.4% |
+10.4% |
Asia and Oceania (including India) |
23.6 |
23.7 |
+0.5% |
+1.8% |
+1.8% |
H1 net
sales by geography (in million euros) |
H1 2023 |
H1 2024 |
% As reported |
% at constant currency |
% On a comparative basis |
Group |
1,176.9 |
1,139.4 |
(3.2)% |
+3.3% |
(0.5)% |
Europe |
353.9 |
372.7 |
+5.3% |
+8.7% |
+8.7% |
North America |
476.6 |
423.9 |
(11.0)% |
(11.0)% |
(11.0)% |
Latin America |
216.9 |
218.2 |
+0.6% |
+23.9% |
+4.1% |
Middle East and Africa |
83.0 |
81.4 |
(2.0)% |
+12.4% |
+12.4% |
Asia and Oceania (including India) |
46.5 |
43.3 |
(7.0)% |
(4.6)% |
(4.6)% |
Net sales by division
Q2 net
sales by division (in million euros) |
Q2 2023 |
Q2 2024 |
% As reported |
FX impact (in points) |
Change in Perimeter (in points) |
Argentina impact (in points) |
% On a comparative basis |
Group |
638.2 |
617.8 |
(3.2)% |
(1.5) |
(0.0) |
(0.8) |
(0.9)% |
Stationery- Human Expression |
282.9 |
278.7 |
(1.5)% |
(1.7) |
(0.0) |
(1.1) |
+1.3% |
Lighters- Flame for Life |
205.8 |
195.0 |
(5.2)% |
(0.8) |
(0.0) |
(0.8) |
(3.6)% |
Shavers- Blade Excellence |
143.6 |
138.5 |
(3.6)% |
(2.0) |
(0.0) |
(0.6) |
(1.0)% |
Other Products |
5.9 |
5.6 |
(6.0)% |
+0.0 |
(0.0) |
(0.0) |
(6.0)% |
H1 net
sales by division (in million euros) |
H1 2023 |
H1 2024 |
% As reported |
FX impact (in points) |
Change in Perimeter (in points) |
Argentina impact (in points) |
% On a comparative basis |
Group |
1,176.9 |
1,139.4 |
(3.2)% |
(1.9) |
(0.0) |
(0.8) |
(0.5)% |
Stationery- Human Expression |
460.3 |
452.5 |
(1.7)% |
(2.6) |
(0.0) |
(1.4) |
+2.3% |
Lighters- Flame for Life |
434.3 |
402.1 |
(7.4)% |
(1.0) |
(0.0) |
(0.6) |
(5.8)% |
Shavers- Blade Excellence |
268.3 |
271.0 |
+1.0% |
(2.4) |
(0.0) |
(0.1) |
+3.5% |
Other Products |
14.0 |
13.8 |
(1.2)% |
+0.0 |
(0.0) |
(0.0) |
(1.2)% |
Change in Perimeter and Currency Fluctuations Impact on
Net Sales
Impact
of Change in Perimeter and Currency Fluctuations on Net Sales
(excludes ARS) (in %) |
Q2 2023 |
Q2 2024 |
H1 2023 |
H1 2024 |
Perimeter |
0.0 |
(0.0) |
+0.3 |
(0.0) |
Currencies |
(2.9) |
(1.5) |
(0.5) |
(1.9) |
of which USD |
(1.0) |
+0.4 |
+0.3 |
(0.0) |
of which BRL |
(0.2) |
(0.3) |
+0.1 |
(0.0) |
of which MXN |
+0.6 |
+0.1 |
+0.6 |
+0.3 |
of which CAD |
(0.2) |
(0.0) |
(0.2) |
(0.0) |
of which ZAR |
(0.2) |
+0.0 |
(0.2) |
(0.0) |
of which NGN |
(0.2) |
(0.8) |
(0.1) |
(0.9) |
of which TRY |
(0.3) |
(0.7) |
(0.3) |
(0.7) |
of which INR |
(0.2) |
(0.0) |
(0.1) |
(0.0) |
of which RUB and UAH |
(0.7) |
(0.3) |
(0.2) |
(0.4) |
Sensitivity to Net Sales and Income Before Tax (IBT) of
USD-EUR fluctuation (in %) |
H1 2023 |
H1 2024 |
+/- 5% change in USD impact on Net Sales |
2.0 |
1.9 |
+/- 5% change in USD impact on IBT |
1.1 |
0.3 |
EBIT by division
EBIT by
division (in million euros) |
Q2 2023 |
Q2 2024 |
H1 2023 |
H1 2024 |
Group |
102.8 |
99.5 |
174.7 |
154.5 |
Margin |
16.1% |
16.1% |
14.8% |
13.6% |
Stationery- Human Expression |
39.6 |
39.0 |
44.7 |
45.3 |
Margin |
14.0% |
14.0% |
9.7% |
10.0% |
Lighters- Flame for Life |
69.4 |
59.9 |
152.8 |
121.1 |
Margin |
33.7% |
30.7% |
35.2% |
30.1% |
Shavers- Blade Excellence |
14.9 |
23.6 |
20.3 |
35.2 |
Margin |
10.4% |
17.0% |
7.6% |
13.0% |
Other Products |
(0.0) |
(1.4) |
(0.8) |
(2.3) |
Unallocated costs |
(21.1) |
(21.6) |
(42.3) |
(44.7) |
Adjusted EBIT by division
Adjusted EBIT by division (in million euros) |
Q2 2023 |
Q2 2024 |
H1 2023 |
H1 2024 |
Group |
105.0 |
107.4 |
175.1 |
170.2 |
Margin |
16.5% |
17.4% |
14.9% |
14.9% |
Stationery- Human Expression |
42.2 |
42.6 |
44.6 |
51.8 |
Margin |
14.9% |
15.3% |
9.7% |
11.4% |
Lighters- Flame for Life |
69.2 |
63.2 |
153.1 |
126.5 |
Margin |
33.6% |
32.4% |
35.3% |
31.5% |
Shavers- Blade Excellence |
14.8 |
24.5 |
20.5 |
38.3 |
Margin |
10.3% |
17.7% |
7.6% |
14.1% |
Other Products |
(0.0) |
(1.4) |
(0.8) |
(2.3) |
Unallocated costs |
(21.1) |
(21.6) |
(42.3) |
(44.2) |
Condensed Profit & Loss
Condensed Profit and Loss (in million euros) |
Q2 2023 |
Q2 2024 |
H1 2023 |
H1 2024 |
Net Sales |
638.2 |
617.8 |
1,176.9 |
1,139.4 |
Cost of goods |
325.5 |
312.8 |
596.1 |
577.2 |
Gross profit |
312.7 |
305.0 |
580.8 |
562.2 |
Administrative & net other operating expenses/ (gain) |
209.9 |
205.5 |
406.1 |
407.7 |
EBIT |
102.8 |
99.5 |
174.7 |
154.5 |
Finance revenue/costs |
(4.3) |
8.0 |
(5.5) |
0.2 |
Income before tax |
98.5 |
107.5 |
169.2 |
154.7 |
Income tax expense |
(27.7) |
(30.3) |
(47.5) |
(43.3) |
Net Income Group Share |
70.8 |
77.2 |
121.6 |
111.4 |
Earnings per Share Group Share (in euros) |
1.64 |
1.85 |
2.81 |
2.67 |
Average number of shares outstanding (net of treasury shares) |
43,229,749 |
41,775,924 |
43,229,749 |
41,775,924 |
Balance Sheet
Balance Sheet (in million
euros) |
June 30, 2023 |
December 31, 2023 |
June 30, 2024 |
Assets |
- Property, plant & equipment
|
607.4 |
623.4 |
600.2 |
|
1.5 |
1.0 |
1.0 |
- Goodwill and intangible assets
|
398.8 |
382.3 |
387.3 |
|
145.1 |
151.0 |
153.8 |
Non-current assets |
1,152.8 |
1,157.7 |
1,142.3 |
|
600.6 |
558.0 |
557.6 |
- Trade and other receivables
|
569.6 |
403.5 |
564.1 |
|
38.5 |
40.6 |
48.2 |
- Other current financial assets and derivative instruments
|
26.7 |
19.8 |
3.6 |
- Cash and cash equivalents
|
327.2 |
467.7 |
385.4 |
Current assets |
1,562.7 |
1,489.6 |
1,558.9 |
Total Assets |
2,715.5 |
2,647.3 |
2,701.2 |
Liabilities & Shareholders' Equity |
Shareholders' equity |
1,821.5 |
1,846.6 |
1,806.0 |
|
42.0 |
46.8 |
42.9 |
- Other non-current liabilities
|
158.7 |
167.6 |
165.0 |
Non-current liabilities |
200.7 |
214.4 |
207.9 |
|
188.8 |
144.7 |
181.7 |
|
160.2 |
109.4 |
143.1 |
- Other current liabilities
|
344.2 |
332.2 |
362.5 |
Current liabilities |
693.2 |
586.3 |
687.3 |
Total Liabilities & Shareholders' Equity |
2,715.5 |
2,647.3 |
2,701.2 |
Working Capital and Cash Flow
Working Capital (in million euros) |
H1 2023 |
H1 2024 |
Total Working Capital |
706.9 |
662.9 |
Of which, inventories |
600.6 |
557.6 |
Of which, trade and other receivables |
569.6 |
564.1 |
Of which, Trade and other payables |
(188.8) |
(181.7) |
Cash
Flow Statement (in million euros) |
H1 2023 |
H1 2024 |
Group Net income |
121.6 |
111.4 |
- Amortization and provisions
|
59.2 |
59.0 |
- Other non cash transactions
|
59.8 |
57.6 |
Cash Flow from operations |
240.6 |
228.0 |
- (Increase)/decrease in net current working capital
|
(154.8) |
(105.2) |
|
(40.5) |
(54.3) |
Net cash from operating activities (A) |
45.3 |
68.5 |
|
(42.8) |
(31.6) |
- Proceed from Pimaco divestiture
|
(0.0) |
(0.0) |
|
(0.0) |
(0.0) |
|
(10.0) |
7.5 |
Net cash from investing activities (B) |
(52.8) |
(24.0) |
|
(110.2) |
(119.1) |
- Borrowings/(Repayments)/(Loans)
|
80.3 |
33.2 |
- Share buy-back program & Liquidity program
|
(61.2) |
(29.7) |
|
0.5 |
(6.1) |
Net cash from financing activities (C) |
(90.6) |
(121.7) |
Net increase/ (decrease) in cash and cash equivalents net
of bank overdrafts (A+B+C) |
(98.1) |
(77.2) |
Opening cash and cash equivalents net of bank
overdrafts |
415.2 |
467.7 |
- Net increase / decrease in cash and cash equivalents net of
bank overdrafts (A+B+C)
|
(98.1) |
(77.2) |
|
8.0 |
(5.1) |
Closing cash and cash equivalents net of bank
overdrafts |
325.1 |
385.4 |
Reconciliation with Alternative Performance
Measures
Adjusted EBIT Reconciliation (in million
euros) |
Q2 2023 |
Q2 2024 |
H1 2023 |
H1 2024 |
EBIT |
102.8 |
99.5 |
174.7 |
154.5 |
Lucky Stationary and Rocketbook earnout (2023) |
+1.3 |
- |
(0.5) |
- |
Special team member bonus* |
- |
- |
- |
+7.8 |
Other acquisition costs (2023) |
+0.9 |
- |
+0.9 |
- |
Restructuring expenses |
- |
+5.1 |
- |
+5.1 |
Power Purchase Agreement in France |
- |
+2.7 |
- |
+2.7 |
Adjusted EBIT |
105.0 |
107.4 |
175.1 |
170.2 |
* Special bonus that will be awarded to team members who have
not been granted shares under our regular long term incentive
plans
Adjusted EPS Reconciliation (in
euros) |
Q2 2023 |
Q2 2024 |
H1 2023 |
H1 2024 |
EPS |
1.64 |
1.85 |
2.81 |
2.67 |
Lucky Stationary and Rocketbook earnout (2023) |
+0.02 |
- |
(0.01) |
- |
Argentina hyperinflationary accounting (IAS29) |
+0.03 |
- |
+0.06 |
- |
Special team member bonus* |
- |
- |
- |
+0.13 |
Other acquisition costs (2023) |
+0.01 |
- |
+0.01 |
- |
Restructuring expenses |
- |
+0.09 |
- |
+0.09 |
Virtual Power Purchase Agreement in Greece and Power Purchase
Agreement in France |
+0.06 |
(0.02) |
+0.06 |
+0.06 |
Adjusted EPS |
1.76 |
1.92 |
2.93 |
2.95 |
* Special bonus that will be awarded to team members who have
not been granted shares under our regular long term incentive
plans
Net
cash reconciliation (in million euros) |
December 31, 2023 |
June 30, 2024 |
Cash and cash equivalents (1) |
+477.3 |
+387.2 |
Current borrowings (2) |
(91.9) |
(125.4) |
Non-current borrowings (3) |
- |
- |
Net Cash Position (1) - (2) – (3) |
385.4 |
261.8 |
Free
Cash Flow reconciliation (in million euros) |
December 31, 2023 |
June 30, 2024 |
Net cash from operating activities (1) |
+353.3 |
+68.5 |
Capital expenditure (2) |
(104.6) |
(31.6) |
Free Cash Flow before acquisition and disposals (1) -
(2) |
248.7 |
36.9 |
Share Buyback Program
Société BIC
|
Number of shares acquired
|
Average weighted price (in €)
|
Amount (in €m)
|
|
|
January 2024 |
- |
- |
- |
|
February 2024 |
- |
- |
- |
|
March 2024 |
216,251 |
65.50 |
14.2 |
|
April 2024 |
81,948 |
66.00 |
5.4 |
|
May 2024 |
11,353 |
65.37 |
0.7 |
|
June 2024 |
159,340 |
56.84 |
9.1 |
|
Total |
468,892 |
62.64 |
29.4 |
|
Capital and Voting Rights
As of June 30, 2024, the total number of issued shares of
Société BIC is 42,270,689 shares, representing:
- 60,460,965
voting rights
- 59,804,480
voting rights excluding shares without voting rights
Total number of treasury shares held at the end
of June 2024: 656,485.
Glossary
- Constant
currency basis: Constant currency figures are calculated
by translating the current year figures at prior year monthly
average exchange rates.
- Organic
change or Comparative basis: At constant currencies and
constant perimeter. Figures at constant perimeter exclude the
impact of acquisitions and/or disposals that occurred during the
current year and/or during the previous year, until their
anniversary date. All Net Sales category comments are made on a
comparative basis. Organic change excludes Argentina Net
Sales.
-
EBITDA: EBIT before Depreciation, Amortization
(excluding amortization of right of use under IFRS 16 standard) and
impairment.
- Adjusted
EBIT: Adjusted means excluding normalized items.
- Adjusted
EBIT margin: Adjusted EBIT as a percentage of Net
Sales.
- Net Cash
from operating activities: Cash generated from principal
activities of the entity and other activities that are not
investing or financing activities.
- Free
Cash Flow: Net cash flow from operating activities less
capital expenditures (capex). Free cash flow does not include
acquisitions and proceeds from the sale of businesses.
- Net cash
position: Cash and cash equivalents + Other current
financial assets - Current borrowings - Non-current borrowings
(except financial liabilities following IFRS 16 implementation)
Société BIC consolidated financial
statements as of June 30, 2024, were approved by the Board of
Directors on July 31, 2024. A presentation related to this
announcement is also available on the BIC website
(www.bic.com).
The Group statutory auditors’ limited review
procedures have been completed. Their review report is currently
being issued. This document contains forward-looking statements.
Although BIC believes its expectations are based on reasonable
assumptions, these statements are subject to many risks and
uncertainties. A description of the risks borne by BIC appears in
the section, "Risk Management" in BIC's 2023 Universal Registration
Document (URD) filed with the French financial markets authority
(AMF) on March 28, 2024. BIC's 2024 Half Year Financial Report will
be filed with the AMF by August 2, 2024, at the latest.
About BIC
A world leader in stationery, lighters and
shavers, BIC brings simplicity and joy to everyday Life. For more
than 75 years, the Company has honored the tradition of providing
high-quality, affordable, essential products to consumers
everywhere. Through this unwavering dedication, BIC has become one
of the most recognized brands and is a trademark registered
worldwide. Today, BIC products are sold in more than 160 countries
around the world and feature iconic brands such as BIC Kids™, BIC
FlexTM, BodyMark by BICTM, Cello®,
Djeep, Lucky Stationary, Rocketbook, Soleil®,
Tipp-Ex®, Us. TM, Wite-Out®,
Inkbox, and more. In 2023, BIC Net Sales were €2,263 million. The
Company is listed on Euronext Paris, is part of the SBF120 and CAC
Mid 60 indexes and is recognized for its commitment to sustainable
development and education. It has received an A- Leadership score
from CDP. For more, visit www.bic.com or follow us on LinkedIn,
Instagram, Twitter, or YouTube.
BIC's Q2 and H1 2024 earnings conference
call and webcast will be hosted by Gonzalve Bich, CEO, and
Chad Spooner, CFO on Wednesday, July 31, 2024 at 6:30 PM
CET:
- To participate to the webcast:
https://channel.royalcast.com/landingpage/bic/20240731_1/
- To participate to the conference
call:
From France: |
+33 (0) 1 70 37
71 66 |
From the UK: |
+44 (0) 33 0551
0200 |
From the USA: |
+1 786 697 3501 |
Vocal access
code: |
“BIC”
|
Contacts
Investor Relations
team
investors.info@bicworld.com
Brice Paris
VP Investor Relations
+33 1 45 19 55 28
brice.paris@bicworld.com |
Apolline
Celeyron
Senior Communications Manager
+33 1 45 19 56 09
Apolline.celeyron@bicworld.com
Isabelle de Segonzac
Image 7, Press Relations contact
+33 6 89 87 61 39
isegonzac@image7.fr |
2024 Agenda
All dates to be confirmed
3rd Quarter
and 9 Months 2024 Results |
October 23, 2024 (post market close) |
Full Year 2024 Results |
February 18, 2025 (post market close) |
1 Excluding the special bonus and the fair value adjustment on
the Power Purchase Agreement in France
2 See market assumptions page in Appendix
3 Excluding Argentina net sales due to hyperinflationary
context
4 In November 2023, BIC signed a physical Power Purchasing
Agreement as part of our sustainability strategy. This impact is
the change in fair value booked in cost of goods as of June 30,
2024.
5 Others include income tax paid and pensions contribution
6 Including -€1 million in 2024 and +€1 million in 2023 related to
capital expenditures payable change
7 Includes in 2024 €18.9 million of share buyback for cancellation
and €10.5 million of free shares to be granted (long term
incentives)
8 Year to Date June 2024: NPD
9 NielsenIQ (France, Spain, Italy, Poland, Romania, Greece,
Portugal, Sweden, Norway, Denmark, Switzerland), Circana (UK);
Value sales year-to-date as of April 2024
10 Year to Date June 2024: IRI disposable market
11 Year to Date May 2024: Nielsen (c. 62% market coverage)
12 Euromonitor and BIC estimates
13 IRI data: channels covered are Multi-Outlet + Convenience
stores
- BIC_Q2H12024_Results_PressRelease
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