BIC: Third Quarter & Nine Months 2023 Results
Clichy, France, October 25, 2023
THIRD QUARTER & NINE MONTHS 2023
RESULTSContinued strong sales growth1 in
Q3 of +7.2% and an adjusted EBIT margin of 15.2%.
9M net sales growth, +7.1% at constant currency, driven
by market share gains in key regions across all
categories:
- 9M Human Expression: +7.6% net sales growth at
constant currency (CC), driven by Europe and double-digit growth in
developing markets.
- 9M Flame for Life: +1.7% net sales growth at
CC, as a result of stronger performance in Europe and developing
markets partially offset by a decline in the US.
- 9M Blade Excellence: +15.6% net sales growth
at CC, fueled by added-value products across Europe and Latin
America, and double-digit growth in the Middle East and
Africa.
9M adjusted EBIT margin was 15.0%: impacted by
high input cost inflation in the first half (raw materials and
electricity), fixed cost absorption and forex, partially offset by
favorable price and mix.
Sustained operating cash flow amounted to €359.3
million: free cash flow amounted to €142.2 million, as a
result of strong Q3 cash collection and improved inventory
management.
Key Group financial figures
in million euros |
Q3 2022 |
Q3 2023 |
9M 2022 |
9M 2023 |
Group net sales |
580.1 |
560.3 |
1,707.2 |
1,737.3 |
Change as reported |
+21.3% |
(3.4) % |
+22.4% |
+1.8% |
Change on a comparative basis |
+7.6% |
+3.2% |
+11.6% |
+3.8% |
Change on a constant currency basis |
+10.5% |
+7.2% |
+13.8% |
+7.1% |
|
|
|
|
|
EBIT margin |
11.1% |
14.6% |
15.3% |
14.8% |
Adjusted EBIT margin |
11.3% |
15.2% |
15.7% |
15.0% |
|
|
|
|
|
EPS (in euros) |
1.06 |
1.39 |
4.22 |
4.22 |
Adjusted EPS (in euros) |
1.14 |
1.49 |
4.53 |
4.43 |
|
|
|
|
|
Free cash flow before acquisitions and
disposals |
128.3 |
139.7 |
150.7 |
142.2 |
Net cash position |
347.0 |
308.3 |
347.0 |
308.3 |
“Our third quarter demonstrates how the commercial and
operational capabilities developed under our Horizon plan are
delivering sustainable profitable growth.” said CEO
Gonzalve Bich. “Horizon’s broad range of interconnected
strategic initiatives achieved net sales growth equal to the upper
level of our annualized medium-term range, as well as adjusted EBIT
margin improvement and strong cash generation once again. Building
a more consumer-centric portfolio is at the heart of our growth
strategy. New product innovation in higher value products, coupled
with deep data insights to reduce SKU count by more than 7%
year-to-date, ahead of our 2023 ambition, enabled us to maximize
the value of our assortment and focus on the highest yielding SKUs.
This provides BIC with a competitive edge at key points of sale to
deliver growth above market rates while improving
profitability.Looking ahead, while it is important to be mindful of
the economic pressures facing consumers, we are excited about our
prospects coming into 2024. We are confident that as our Horizon
initiatives continue to mature, we will remain on track to meeting
our mid-term objectives.”
2023 Outlook Confirmed 2
Full year 2023 net sales are
expected to grow between 5% and 7% at constant currencies, driven
by price and mix. We expect to improve 2023
adjusted EBIT and adjusted EBIT margin, as well as
gross profit margin, though this will be partially
offset by continued investments in operations and brand support
aimed at driving Horizon ambition of delivering profitable
long-term growth.
Free cash flow is expected to be above €200
million in 2023, for the fifth year in a row.
Third quarter and nine months 2023 key
highlights
Net sales, earnings before interest and taxes (EBIT),
and adjusted EBIT
in million euros |
Q3 2022 |
Q3 2023 |
9M 2022 |
9M 2023 |
Net sales |
580.1 |
560.3 |
1,707.2 |
1,737.3 |
Gross profit |
275.0 |
295.6 |
834.8 |
876.4 |
Gross profit margin |
47.4% |
52.8% |
48.9% |
50.4% |
EBITDA |
84.6 |
96.4 |
332.1 |
320.5 |
EBIT |
64.3 |
81.6 |
261.9 |
256.3 |
EBIT margin |
11.1% |
14.6% |
15.3% |
14.8% |
Non-recurring items |
1.3 |
3.7 |
6.6 |
4.1 |
Adjusted EBIT |
65.6 |
85.3 |
268.5 |
260.4 |
Adjusted EBIT margin |
11.3% |
15.2% |
15.7% |
15.0% |
Q3 2023 net sales grew 7.2% at constant
currencies and 3.2% on a comparable basis with solid performance in
Europe, Middle East and Africa, and Brazil. Blade Excellence posted
the strongest performance (+17.3% CC) followed by Human Expression
(+4.5% CC) and Flame for Life (+3.9% CC).
Q3 2023 gross profit margin increased 5.4 pts
to 52.8%, driven by strong price and mix, lower raw material costs,
manufacturing efficiencies and favorable forex as a result of
EUR/USD hedging. This was partially offset by unfavorable fixed
cost absorption and negative mix from less contribution from US
Lighter sales.
Q3 2023 adjusted EBIT margin increased 3.9 pts
to 15.2%, driven by gross profit improvements. This was partially
offset by increased opex and brand support investments.
Revenue Growth Management continued to drive
momentum through Q3 2023 fueled by positive pricing and mix across
all three divisions, led by Human Expression and consumers
trading-up to the 4-Color Décor Pen in Europe. Additionally, our
focus on building a consumer-centric portfolio is driving further
improvement of our Net Sales per SKU Growth of 15.4% and a net SKU
reduction of more than 7%, ahead of our 2023 ambition.
9M 2023 net sales increased
7.1% at constant currencies, 3.8% on a comparable basis and 9.8% on
a rolling 12-month basis. Net sales growth was driven by Europe,
the Middle East and Africa, as well as Latin America. The three
divisions contributed to growth led by Blade Excellence and Human
Expression. Net sales growth was driven by price
and mix benefiting from RGM and innovation. Net sales from
e-commerce continued to grow, up 13.0% CC, bringing the total share
of online sales to 12.6% compared with 11.7% for 9M 2022.
9M 2023 gross profit margin
increased 1.5 pts to 50.4%, favorably impacted by price and mix,
manufacturing efficiencies and EUR/USD hedging. This was partially
offset by input cost inflation (raw material and electricity
costs), fixed cost absorption, and forex (mainly due to USD/MXN and
EUR/TRY).
9M 2023 adjusted EBIT margin
was 15.0%, compared to 15.7% in 9M 2022, this was a result of
increased opex and brand support investments (investments to
support the net sales growth), which were partially offset by gross
profit improvements.
Key components of the change in adjusted EBIT
margin
Key components of the change in Adjusted EBIT margin
(in points) |
Q1 2023 vs. Q1 2022 |
Q2 2023 vs. Q2 2022 |
Q3 2023 vs. Q3 2022 |
9M 2023 vs. 9M 2022 |
· Change in gross profit |
(2.0) |
+1.1 |
+5.4 |
+1.5 |
· Brand Support |
(1.2) |
+0.3 |
(0.7) |
(0.5) |
· Opex and other expenses3 |
(3.6) |
(1.4) |
(0.8) |
(1.7) |
Total change in adjusted EBIT margin |
(6.8) |
0.0 |
+3.9 |
(0.7) |
Net income and earnings per share (EPS)
in million euros |
Q3 2022 |
Q3 2023 |
9M 2022 |
9M 2023 |
EBIT |
64.3 |
81.6 |
261.9 |
256.3 |
Finance revenue/costs |
0.7 |
1.5 |
(3.4) |
(4.0) |
Income before tax |
65.0 |
83.1 |
258.6 |
252.3 |
Net income Group share |
46.8 |
59.8 |
186.2 |
181.4 |
Adjusted net income Group
share4 |
50.3 |
64.0 |
200.1 |
190.7 |
Adjusted EPS Group share (in euros) |
1.14 |
1.49 |
4.53 |
4.43 |
EPS Group share (in euros) |
1.06 |
1.39 |
4.22 |
4.22 |
Nine months 2023 effective tax rate was 28.1%
vs. 28.0% for nine months 2022.
Change in net cash position
Change in net cash positionin million euros |
9M 2022 |
9M 2023 |
Net cash position (beginning of period –
December) |
400.1 |
359.9 |
Net cash from operating activities |
+208.1 |
+211.5 |
· Of which operating cash flow |
+357.8 |
+359.3 |
· Of which change in working capital |
(88.1) |
(90.6) |
· Others |
(61.6) |
(57.2) |
Capex5 |
(57.4) |
(69.3) |
Dividend payment |
(94.7) |
(110.2) |
Share buyback program |
(43.7) |
(97.3) |
Net cash from the liquidity contract |
+1.9 |
- |
Proceed from Pimaco divestiture |
+1.1 |
- |
Acquisitions6 |
(73.3) |
- |
Other items |
+4.9 |
+13.7 |
Net cash position (end of period – September) |
347.0 |
308.3 |
Operating cash flow was €359.3 million,
resulting from strong business performance. The €147.8 million
negative change in working capital and others were mainly driven by
higher trade and other receivables of €93.2 million linked to
increased net sales. As a result, nine months 2023 free
cash flow before acquisitions and disposals was €142.2
million.
At the end of September 2023, net cash position
was €308.3 million, with €97.3 million in share buybacks.
Shareholders’ remuneration
- An ordinary dividend of
€2.56 per share was paid on May 31, 2023.
€97.3 million in share buybacks were completed
by Société BIC at the end of September 2023. 1,646,032 shares were
purchased at an average price of €59.14 per share.
Operational Trends by
Division
Human Expression
in million euros |
Q3 2022 |
Q3 2023 |
9M 2022 |
9M 2023 |
Net sales |
225.2 |
214.7 |
663.2 |
675.0 |
Change as reported |
+14.1% |
(4.7)% |
+25.0% |
+1.8% |
Change on a comparative basis |
+2.1% |
+1.2% |
+14.4% |
+3.5% |
Change at constant currency |
+6.6% |
+4.5% |
+18.4% |
+7.6% |
|
|
|
|
|
Adjusted EBIT |
(1.2) |
16.0 |
34.3 |
60.6 |
Adjusted EBIT margin |
(0.6)% |
7.5% |
5.2% |
9.0% |
The Human Expression division’s Q3 2023
net sales performance (+4.5% CC) was driven by growth in
Latin America, the Middle East and Africa and Europe.
In Europe, growth was driven by positive price
and mix (results of our strong RGM efforts) which contributed to a
strong back-to-school season. Although overall market conditions in
France and the UK were challenging, strong execution secured market
share growth, in value, for both countries by 1.1
points7.In the US, net sales were negatively
impacted by promotion and coupons, but BIC maintained its market
share8 with positive contributions particularly from core
stationary products (ball point pens, correction and gel) and new
products (Break Resistant mechanical pens).
In Brazil net sales performance was driven by
favorable price and mix, as well as back-to-school sell-in.
In the Middle East and Africa, net sales grew by
double digits fueled by both volume and price and mix. This was
driven by strong back-to-school in West and Central Africa and good
performance in South Africa.
9M 2023 Net Sales grew by 7.6% at constant
currencies, and by 3.5% on a comparable basis, with a positive
price mix in all categories as the main driver.
Q3 2023 Human Expression division
adjusted EBIT margin was 7.5% compared to
(-0.6)% in Q3 2022. This significant increase was driven by
favorable pricing and mix, favorable FX (mainly due EUR/USD
hedging), lower raw materials costs, lower freight &
distribution costs, and favorable net sales leverage. This was
partially offset by higher brand support.
9M 2023 Human Expression division adjusted EBIT
margin was 9.0% compared to 5.2% in 9 months
2022. The increase was driven by favorable pricing and mix and
lower brand support. This was partially offset by unfavorable
forex, mainly the USD/MXN as well as higher opex.
Flame for Life
in million euros |
Q3 2022 |
Q3 2023 |
9M 2022 |
9M 2023 |
Net sales |
216.0 |
200.1 |
652.0 |
634.4 |
Change as reported |
+26.5% |
(7.3)% |
+21.2% |
(2.7)% |
Change on a comparative basis |
+11.0% |
(1.3)% |
+9.9% |
(1.0)% |
Change at constant currency |
+12.4% |
+3.9% |
+10.8% |
+1.7% |
|
|
|
|
|
Adjusted EBIT |
74.8 |
68.3 |
241.6 |
221.4 |
Adjusted EBIT margin |
34.6% |
34.1% |
37.1% |
34.9% |
Q3 2023 Flame for Life division net sales grew
by 3.9% at constant currencies, against a demanding comparison.
In the US, the total lighter market declined
year to date by 6.3% in volume and 2.1%9 in value. However, BIC
maintained its leadership position, gaining share in volume, +0.7
pts, and value, +0.9 pts, topping its competitors thanks to
positive price and mix.
In Europe, sales accelerated in Q3 with a low
double-digit growth at constant currency boosted by the roll-out of
EZ Reach, which achieved promising growth in France.
In Latin America, net sales accelerated in Q3
and grew at a double-digit pace at constant currency. Brazil growth
was fueled by pocket lighter in both volume and value as well as
increased distribution.
9M 2023 Net Sales was driven by double-digit
growth in Latin America and the Middle East, and Africa and high
single-digit growth in Europe. Those regions benefited as well from
increased distribution.
Q3 2023 Flame for Life division adjusted EBIT
margin was 34.1% compared to 34.6% in Q3 2022. This
was the result of unfavorable fixed cost absorption, higher raw
material costs, and negative net sales operating leverage in the
US. Brand support investments were also higher, with the launch of
the BIC® EZ Reach advertising campaign in Europe. This was partly
offset by favorable pricing, forex (EUR/USD hedging), and
manufacturing efficiencies.
9M2023 Flame for Life division adjusted EBIT
margin reached 34.9% compared to 37.1% in 9M 2022 and had
similar drivers for the change as seen in Q3.
Blade Excellence
in million euros |
Q3 2022 |
Q3 2023 |
9M 2022 |
9M 2023 |
Net sales |
132.6 |
139.1 |
372.9 |
407.4 |
Change as reported |
+26.8% |
+4.9% |
+22.3% |
+9.2% |
Change on a comparative basis |
+12.3% |
+13.9% |
+11.5% |
+12.6% |
Change at constant currency |
+14.7% |
+17.3% |
+12.8% |
+15.6% |
|
|
|
|
|
Adjusted EBIT |
13.3 |
26.0 |
56.6 |
46.5 |
Adjusted EBIT margin |
10.0% |
18.7% |
15.2% |
11.4% |
Q3 2023 Blade Excellence net
sales was the second consecutive quarter of double-digit
growth (+17.3% CC).
In the Blade Excellence division, BIC gained market share across
all key regions. Added value and new products drove solid
performance in the 3 to 5 blade and Hybrid ranges, notably in
Europe and Latin America.
In Europe, BIC gained market share by value in
all its major countries, including in France (+3.3 pts), Italy
(+1.8 pts), and Poland (+2.9 pts)10, fueled by the success of 3 to
5 blade products in the female and male segments. Net sales grew at
a double-digit pace on higher volumes in Eastern Europe, favorable
price and mix, and further distribution gains. Added-value products
in the Single Metal and Miss Soleil ranges and new sustainable
ranges contributed to growth, in line with the Horizon goals to
increase premium offerings.
Communiqué de pressewith the successful performance of the
Soleil range. Q3 2023 net sales performance grew at a high single
digit pace, benefiting from innovative products in the EasyRinse
and Escape range. BIC Soleil Escape (4 and 5 blades) was a
significant contributor to growth.
Our trade-up strategy towards a value-added 3 blade-offering,
along with volume increases, is yielding positive results in
Latin America. Q3 net sales grew by double digits.
This is notably true in Brazil, where we continued to gain market
share, up 1.0 pt11 in value as a result of our Comfort 3, Soleil,
and Hybrid ranges. In Mexico, we gained +0.6 pts12
in value. Net sales grew at a high single-digit pace, driven by
added-value products in the modern trade channel and traditional
trade distribution improvements.
9M 2023 Blade Excellence division net sales
grew 15.6% at constant currency with stronger growth in Q3 2023 in
almost all regions.
Q3 2023 Blade Excellence division adjusted EBIT
margin reached 18.7% compared to 10.0% in Q3
2022. This significant increase is mainly driven
by favorable net sales leverage combined with price and mix, lower
raw material costs, advantageous forex (mainly EUR/USD hedging),
manufacturing efficiencies and lower freight and distribution
costs.
9M 2023 Blade Excellence division adjusted EBIT
margin was 11.4% compared to 15.2% in 9M 2022 due to
significant input cost inflation in the first half of the year (raw
materials and electricity) and unfavorable forex (mainly the
USD/MXN), partially offset by manufacturing efficiencies. The
margin was also impacted by higher opex and brand support
investments, mostly related to the launch of BIC EasyRinse and a
major advertising campaign in the US. This was partially offset by
favorable price and mix.
Update on
Horizon Plan Execution
At our Investor Update on September 11, 2023, we presented
progress on how our Horizon Plan has shaped the future of our
business and accelerated sustainable, profitable growth since its
launch in November 2020.
Horizon objectives by year-end
2025:
- Annual net sales: growth of
5-7%.1
- Adjusted EBIT margin: approx.
150bps improvement from 2022 level of 14.0%.
- Free cash flow: an additional €20
million annually from 2024 above its current >€200 million
objective.
We confirmed and updated our 5-year objectives (2025) due to
strong execution of the following growth initiatives:
Deliver Sustainable GrowthStronger commercial
execution and go-to-market expertise are helping to secure growth
above market rates:
- Reinforced marketing capabilities
and innovative marketing campaigns are driving category
growth.
- A renewed focus on eCommerce has
boosted online sales to 10.5% of net sales.
- Revenue Growth Management
discipline is simplifying our portfolio and maximizing the value of
our assortment by reducing SKUs by 30%, contributing to a 70%
increase in net sales per SKU between 2019 and 2023 (estimate). The
resulting price and mix benefit will outpace volume and inflation
headwinds.
BIC is also strengthening growth through innovation and
M&A:
- Innovation is flourishing, with 10%
of sales coming from new products introduced in the last three
years. The number of patents granted remains high: 311 in 2022 and
21 patents filed for EasyRinse alone.
- New consumer-centric, data-backed
product innovations continue to address specific consumer
challenges and offer solutions not previously available, providing
opportunities to trade up while enhancing brand perception.
- The BIC Blade-Tech B2B business
model enables BIC to tap into a growing disruptor space in
refillable systems.
- Increased M&A activity has
strengthened how we anticipate changing consumer behavior, deliver
compelling on-trend products, and expand category growth. BIC’s
value add as an accelerator drives additional upside, with M&A
activity contributing €75 million to net sales in 2022. The
acquisition of AMI, enables BIC to rethink writing through an
exciting digital lens, using magnetic components.
Execute Operating EfficienciesNew capabilities
have been introduced to deliver operating efficiencies:
- BIC’s centralized value-added
procurement capitalizes on its global operations to deliver cost
savings, ensure reliability of supply, and advance sustainability
goals.
- Direct and indirect procurement
drives incremental cost savings and efficiency gains, while
countering inflation and supply risks.
- Value engineering helps focus on
consumer value through product optimization, while reducing raw
material use, lowering costs, and enhancing sustainability
benefits.
- Manufacturing and supply chain
efficiencies are lowering end-to-end costs by optimizing our global
footprint and sourcing. This increases BIC’s flexibility and
agility, while reducing lead time to shelf and CO2 emissions.
Capture Cash Every DayFocus on maximizing free
cash flow:
- In 2023, the Company will deliver
over €200 million in free cash flow for the fifth successive
year.
- Stringent capex controls keep the
Company’s average annual capex at approx. €100 million.
- Faster collections improve accounts
receivable, allowing working capital management efforts that
shorten the cash conversion cycle. The Company has already achieved
its Horizon goal for DSO improvement by reducing its DSO by 10 days
since the start of the Horizon strategic plan. We focus on
inventory optimization whilst maintaining strong customer service,
targeting DIO reduction by at least 10 days per year through the
rest of the Horizon strategic plan.
Appendix
2023 Market Assumptions
Our 2023 outlook is based on the following market
assumptions26F6F13 versus 2022:
Market trends (in value):
- Europe:
- Low to mid single decrease in Stationery
- Low to mid single digit decrease in Lighters
- Flat to low single digit decrease in Shavers
- US:
- Low single digit decrease in Stationery market
- Low single digit decrease for total pocket Lighter market
- Low to mid single digit decrease in the total one-piece Shaver
market
- Latin America:
- Low to mid single digit increase in Stationery
- Low to mid single digit increase in Lighters
- Mid to high single digit increase in Shavers
- India:
Mid to high single
digit increase in Stationery
EBIT drivers:
- Gross Profit:
- Increase in prices and mix
- Manufacturing efficiencies
- Slightly favorable Forex impact (excluding Argentina)
- Raw materials and energy inflation
- Labor/overhead inflation
- Adjusted EBIT:
- Gross Profit expansion
- Increase in brand support to drive net sales growth
- Increase in R&D and opex to support Horizon’s long-term
growth and innovation
Free cash flow before acquisitions and disposals
drivers:
- Approximately €110-120 million in capex
Currency: 2023 EUR/USD hedging rate: 1.08
Net sales by geography
Q3 Net sales by geographyin million
euros |
Q3 2022 |
Q3 2023 |
% As reported |
% at constant currencies |
% On a comparative basis |
Group |
580.1 |
560.3 |
(3.4)% |
+7.2% |
+3.2% |
Europe |
169.6 |
170.7 |
+0.6% |
+8.6% |
+8.6% |
North America |
236.9 |
207.6 |
(12.3)% |
(5.0)% |
(5.2)% |
Latin America |
108.5 |
116.4 |
+7.3% |
+26.5% |
+5.8% |
Middle East and Africa |
36.0 |
42.0 |
+16.7% |
+36.5% |
+36.5% |
Asia and Oceania (including India) |
29.1 |
23.6 |
(19.0)% |
(9.1)% |
(9.1)% |
9M Net sales by geographyin million
euros |
9M 2022 |
9M 2023 |
% As reported |
% at constant currencies |
% On a comparative basis |
Group |
1,707.2 |
1,737.3 |
+1.8% |
+7.1% |
+3.8% |
Europe |
497.6 |
524.6 |
+5.4% |
+9.6% |
+9.5% |
North America |
735.8 |
684.2 |
(7.0)% |
(4.8)% |
(5.2)% |
Latin America |
288.2 |
333.3 |
+15.6% |
+28.2% |
+10.8% |
Middle East and Africa |
102.0 |
125.0 |
+22.5% |
+34.5% |
+34.5% |
Asia and Oceania (including India) |
83.6 |
70.1 |
(16.1)% |
(9.1)% |
(9.1)% |
Net sales by division
Q3 Net sales by divisionin million
euros |
Q3 2022 |
Q3 2023 |
Change as reported |
FX impact14(in points) |
Change in Perimeter15(in points) |
Argentina impact16(in points) |
Change on a Comparative basis |
Group |
580.1 |
560.3 |
(3.4)% |
(6.9) |
(0.0) |
+0.3 |
+3.2% |
StationeryHuman Expression |
225.2 |
214.7 |
(4.7)% |
(6.1) |
+0.1 |
+0.1 |
+1.2% |
LightersFlame for Life |
216.0 |
200.1 |
(7.3)% |
(6.9) |
(0.0) |
+0.9 |
(1.3)% |
ShaversBlade Excellence |
132.6 |
139.1 |
+4.9% |
(8.6) |
(0.0) |
(0.4) |
+13.9% |
Other Products |
6.3 |
6.5 |
+2.9% |
(1.5) |
(0.0) |
(0.0) |
+4.4% |
|
|
|
|
|
|
|
|
Net sales by division
9M Net sales by divisionin million
euros |
9M 2022 |
9M 2023 |
Change as reported |
FX impact(in points) |
Change in Perimeter(in points) |
Argentina impact(in points) |
Change on a Comparative basis |
Group |
1,707.2 |
1,737.3 |
+1.8% |
(2.6) |
+0.1 |
+0.5 |
+3.8% |
StationeryHuman Expression |
663.2 |
675.0 |
+1.8% |
(3.0) |
+0.5 |
+0.8 |
+3.5% |
LightersFlame for Life |
652.0 |
634.4 |
(2.7)% |
(2.0) |
(0.0) |
+0.3 |
(1.0)% |
ShaversBlade Excellence |
372.9 |
407.4 |
+9.2% |
(3.5) |
(0.0) |
+0.1 |
+12.6% |
Other Products |
19.1 |
20.5 |
+7.3% |
(1.0) |
(0.0) |
(0.0) |
+8.3% |
Change in Perimeter and Currency Fluctuations Impact on
Net Sales
Impact of change in perimeter and currency fluctuations on
net sales (excludes ARS) (in %) |
Q3 2022 |
Q3 2023 |
9M 2022 |
9M 2023 |
Perimeter |
1.3 |
(0.0) |
1.1 |
+0.1 |
Currencies |
+11.3 |
(6.9) |
+9.0 |
(2.6) |
Of which USD |
+7.2 |
(2.9) |
+5.8 |
(0.8) |
Of which BRL |
+1.4 |
(0.1) |
+1.3 |
+0.1 |
Of which MXN |
+0.9 |
+0.5 |
+0.7 |
+0.6 |
Of which CAD |
0.4 |
(0.2) |
+0.3 |
(0.2) |
Of which ZAR |
+0.0 |
(0.3) |
+0.0 |
(0.2) |
Of which NGN |
+0.2 |
(0.7) |
+0.1 |
(0.3) |
Of which TRY |
(0.7) |
(0.7) |
(0.5) |
(0.5) |
Of which INR |
+0.2 |
(0.2) |
+0.2 |
(0.2) |
Of which RUB and UAH |
+1.1 |
(1.6) |
+0.6 |
(0.7) |
Sensitivity to Net Sales and Income Before Tax (IBT) of
USD-EUR fluctuation
Sensitivity to Net Sales and Income Before Tax (IBT) of
USD-EUR fluctuationin % |
9M 2022 |
9M 2023 |
+/- 5% change in USD impact on Net Sales |
2.1 |
2.0 |
+/- 5% change in USD impact on IBT |
1.2 |
1.0 |
EBIT by division
EBIT by divisionin million euros |
Q3 2022 |
Q3 2023 |
9M 2022 |
9M 2023 |
Group |
64.3 |
81.6 |
261.9 |
256.3 |
Margin |
11.1% |
14.6% |
15.3% |
14.8% |
Stationery- Human Expression |
(2.6) |
12.4 |
30.9 |
57.2 |
Margin |
(1.1) % |
5.8% |
4.7% |
8.5% |
Lighters- Flame for Life |
74.8 |
68.2 |
240.7 |
221.0 |
Margin |
34.6% |
34.1% |
36.9% |
34.8% |
Shavers- Blade Excellence |
13.3 |
26.0 |
54.4 |
46.2 |
Margin |
10.0% |
18.7% |
14.6% |
11.3% |
Other Products |
(0.1) |
(0.9) |
(3.9) |
(1.7) |
Unallocated costs |
(21.1) |
(24.1) |
(60.2) |
(66.4) |
Adjusted EBIT by division
Adjusted EBIT by divisionin million euros |
Q3 2022 |
Q3 2023 |
9M 2022 |
9M 2023 |
Group |
65.6 |
85.3 |
268.5 |
260.4 |
Margin |
11.3% |
15.2% |
15.7% |
15.0% |
Stationery- Human Expression |
(1.2) |
16.0 |
34.3 |
60.6 |
Margin |
(0.6) % |
7.5% |
5.2% |
9.0% |
Lighters- Flame for Life |
74.8 |
68.3 |
241.6 |
221.4 |
Margin |
34.6% |
34.1% |
37.1% |
34.9% |
Shavers- Blade Excellence |
13.3 |
26.0 |
56.6 |
46.5 |
Margin |
10.0% |
18.7% |
15.2% |
11.4% |
Other Products |
(0.1) |
(0.9) |
(3.9) |
(1.7) |
Unallocated costs |
(21.1) |
(24.1) |
(60.2) |
(66.4) |
Condensed Profit & Loss
Condensed Profit & Lossin million
euros |
Q3 2022 |
Q3 2023 |
9M 2022 |
9M 2023 |
Net Sales |
580.1 |
560.3 |
1,707.2 |
1,737.3 |
Cost of goods |
305.1 |
264.7 |
872.4 |
860.9 |
Gross profit |
275.0 |
295.6 |
834.8 |
876.4 |
Administrative & net other operating expenses/ (gain) |
210.7 |
214.0 |
572.9 |
620.1 |
EBIT |
64.3 |
81.6 |
261.9 |
256.3 |
Finance revenue/costs |
0.7 |
1.5 |
(3.4) |
(4.0) |
Income before tax |
65.0 |
83.1 |
258.6 |
252.3 |
Income tax expense |
(18.2) |
(23.4) |
(72.4) |
(70.9) |
Net Income Group Share |
46.8 |
59.8 |
186.2 |
181.4 |
Earnings per Share Group Share(in euros) |
1.06 |
1.39 |
4.22 |
4.22 |
Average number of shares outstanding (net of treasury shares) |
44,130,016 |
43,006,898 |
44,130,016 |
43,006,898 |
Balance Sheet
Balance sheetin million euros |
September 30, 2022 |
September 30, 2023 |
ASSETS |
Non-current assets |
1,239.2 |
1,154.6 |
Current assets |
1,202.1 |
1,138.3 |
TOTAL ASSETS |
2,864.3 |
2,701.5 |
LIABILITIES & SHAREHOLDERS' EQUITY |
Shareholders' equity |
1,921.1 |
1,852.1 |
Non-current liabilities |
181.2 |
206.0 |
Current liabilities |
762.0 |
643.4 |
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY |
2,864.3 |
2,701.5 |
Reconciliation adjusted EBIT & EPS
Adjusted EBIT reconciliationin million euros |
Q3 2022 |
Q3 2023 |
9M 2022 |
9M 2023 |
EBIT |
64.3 |
81.6 |
261.9 |
256.3 |
Rocketbook earnout and Djeep price adjustment (2022), Lucky
Stationery and Rocketbook earnout (2023) |
|
|
0.7 |
(0.5) |
Acquisition costs related to Inkbox (January 2022) and other
acquisition costs (2023) |
1.3 |
0.2 |
2.9 |
1.1 |
US supply chain relocation plan |
|
3.5 |
|
3.5 |
Ukraine operations impairment |
|
|
3.0 |
|
Adjusted EBIT |
65.6 |
85.3 |
268.5 |
260.4 |
Adjusted EPS reconciliationin euros |
Q3 2022 |
Q3 2023 |
9M 2022 |
9M 2023 |
EPS |
1.06 |
1.39 |
4.22 |
4.22 |
Rocketbook earnout and Djeep price adjustment (2022), Lucky
Stationery and Rocketbook earnout (2023) |
|
|
0.05 |
(0.01) |
Argentina hyperinflationary accounting (IAS29) |
0.06 |
0.03 |
0.15 |
0.09 |
Acquisition costs related to Inkbox (January 2022) and other
acquisition costs (2023) |
0.02 |
0.01 |
0.05 |
0.01 |
Ukraine operations impairment |
|
|
0.06 |
|
US supply chain relocation plan |
|
0.06 |
|
0.06 |
Virtual Power Purchase Agreement Greece |
|
|
|
0.06 |
Adjusted EPS |
1.14 |
1.49 |
4.53 |
4.43 |
Free Cash Flow reconciliation |
September 30, 2022 |
September 30, 2023 |
in million euros - rounded figures |
Net cash from operating activities (1) |
208.1 |
211.5 |
Capital expenditure (2) |
(57.4) |
(69.3) |
Free Cash Flow before acquisition and disposals (1) -
(2) |
150.7 |
142.2 |
Share Buyback Program
Société BIC |
Number of shares acquired |
Average weighted price(in €) |
Amount(in M€) |
January 2023 |
0 |
0 |
0 |
February 2023 |
185,526 |
61.57 |
11.4 |
March 2023 |
267,468 |
60.41 |
16.2 |
April 2023 |
70,480 |
58.16 |
4.1 |
May 2023 |
161,317 |
57.43 |
9.3 |
June 2023 |
356,658 |
54.47 |
19.4 |
July 2023 |
0 |
0 |
0 |
August 2023 |
150,048 |
57.35 |
8.6 |
September 2023 |
454,535 |
62.43 |
28.4 |
Total |
1,646,032 |
59.14 |
97.3 |
Capital and Voting Rights
As of September 30, 2023, the total number of
issued shares of Société BIC is 43,952,226 shares,
representing:
64,236,103 voting rights62,364,526 voting rights
excluding shares without voting rights
Total number of treasury shares held at the end
of September 2023: 1,871,577
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 comparable
basis: at constant currencies and constant scope. Figures
at constant scope 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 comparable basis. Organic change excludes
Argentina net sales.
- EBITDA: EBIT before
depreciation and Amortization (excluding amortization of
right-of-use assets under the IFRS 16 standard), and
impairment.
- Adjusted EBITDA or adjusted
EBIT or adjusted net profit: 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 or 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).
SOCIETE BIC consolidated financial statements as of September
30, 2023, were approved by the Board of Directors on October 25,
2023. A presentation related to this announcement is also available
on the BIC website (www.bic.com). 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 2022
Universal Registration Document (URD) filed with the French
financial markets authority (AMF) on March 30, 2023. BIC's 2023
Half Year Financial Report was filed with the AMF on July 28,
2023.
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 2022, BIC Net
Sales were €2,233.9 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 Q3 and 9 months 2023 earnings conference call and
webcast will be hosted by Gonzalve Bich, CEO, and Chad
Spooner, CFO, on Thursday, October 26, 2023, at 8:30 a.m.
(Paris) CET time:
- Webcast:
https://channel.royalcast.com/landingpage/bic/20231026_1/
- Conference call:
From France: |
+33 (0) 1 70 37
71 66 |
From the U.K: |
+44 (0) 33 0551
0200 |
From the
U.S.A: |
+1 786 697
3501 |
Vocal access
code: |
“BIC” |
Connect to the webcast via the
website:https://investors.bic.com/en-us/agenda/2023
Contacts
Investor Relations
teaminvestors.info@bicworld.com Kimberly StewartHead of
Investor Relations +33 6 37 01 42
68kimberly.stewart@bicworld.com |
Isabelle
de Segonzac Image 7, Press Relations contact+33 6 89 87 61
39isegonzac@image7.fr |
Agenda
All dates are subject to change
Full Year
2023 Results |
February 19, 2024, post market close |
First
Quarter 2024 Results |
April 23, 2024, post market close |
2023
AGM |
May 29, 2024 |
1 At Constant Currency (CC)
2 Based on current market assumptions in Appendix
3 Other expenses notably include Freight & Distribution and
R&D4 See Glossary5 Including -€6.1 million in 2022 and -€3.7
million in 2023 related to a change in assets payable6 Inkbox,
Rocketbook and Djeep in 20227 Year to date August 2023: IRI8 Year
to date August 2023: NPD data9 YTD ending September 2023: IRI,
estimated 70% market coverage10 July-August 2023: CIRCANA11 Year to
date August 2023: Nielsen data12 Year to date August 2023: Nielsen
data13 Euromonitor and BIC estimates 14 Forex impact excluding
Argentina Peso (ARS)15 Mainly acquisition of Inkbox16 See
Glossary
- BIC_Q3 & 9M 2023_Results_PressRelease_25_October_EN
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