BIC: Fourth Quarter & Full Year 2023 Results
Clichy, France – February 19, 2024
BIC FOURTH QUARTER & FULL YEAR 2023
RESULTS
A solid year, delivering results in line
with our 2025 strategic goals
FY23 Net Sales growth of +9.2% at
constant currencies (CC) driven by all three
divisions:
-
Human Expression: +10.2% net sales growth at CC
driven by distribution gains across European countries, strong
commercial execution in Latin America and double-digit growth in
Middle East and Africa.
-
Flame for Life: +3.3% net sales growth at CC
driven by distribution expansion and the strong performance of
added-value products in Europe, Latin America, the Middle East, and
Africa.
-
Blade Excellence: +17.8% net sales growth at CC
fueled by double-digit growth in Europe, Latin America, the Middle
East and Africa, along with market share gains in all key regions
and strong performance of both added-value and new products.
Adjusted EBIT growth of +6.9%, with
aEBIT margin at 14.7% (+70bps), driven by gross profit
margin improvement through favorable price, mix and operational
efficiencies, partially offset by continued investments in
operations and brand support.
Strong Free Cash Flow generation of
€248.7 million driven by solid Operating Cash Flow
of €469.2 million.
Strong adjusted EPS growth up +11.3%
versus prior year, at €5.70.
Sustained Shareholder
Remuneration:
-
€120 million proposed Ordinary Dividend for 2023
fiscal year, to be paid on June 12, 2024: €2.85 per
share1, up 11.3% versus
prior year;
-
Extraordinary Dividend of €1.42 per share1, to be
paid on September 18, 2024;
-
Up to €40 million of Share Buyback program to be
executed in 2024
2024 Outlook (based on current market
assumptions2)
Full Year 2024 Net Sales are
expected to grow between +5% and +7% at constant
currency3, driven by volumes, price, and mix. We expect
to see a slight improvement in 2024 adjusted EBIT
margin driven by operating leverage. 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.
Gonzalve Bich, BIC’s Chief Executive
Officer commented:
“In 2023, we maintained our solid execution for
the third consecutive year, driven by our Horizon initiatives,
which continue to support our growth trajectory and margins in line
with mid-term guidance through 2025 thanks to the commitment of our
global team members.Although facing significant global
macroeconomic challenges, we delivered a robust performance that
was fueled by disciplined execution, innovation, and successful new
launches. We boosted our marketing capabilities with consumer
centric campaigns that drove growth across multiple sales channels
and geographies.Our focus on operational excellence contributed to
a gross profit improvement of 240 basis points over the prior year,
through procurement efficiencies and a reliable and more
sustainable supply chain. An integral element is the supply of
electricity from renewable sources, which increased to 91%, up from
76% the prior year. In line with BIC’s capital allocation policy,
the Board of Directors has decided to recommend a total dividend of
€4.27 per share comprised of an ordinary dividend of €2.85 per
share and an extraordinary dividend of €1.42 per share. We enter
2024 with momentum and confidence. We will prioritize disciplined
commercial execution and ongoing innovation. In line with our
strategic goals, we will continue to leverage our successful
product launches, and capture geographic expansion opportunities
while driving sustainable margins through operational efficiencies
to maximize Free Cash Flow.”
Key Group financial figures
in million euros |
Q4 2022 |
Q4 2023 |
FY 2022 |
FY 2023 |
Group Net Sales |
526.7 |
526.1 |
2,233.9 |
2,263.3 |
Change as reported |
+20.6% |
(0.1)% |
+21.9% |
+1.3% |
Change on a comparative basis |
+9.1% |
+2.4% |
+11.0% |
+3.5% |
Change on a constant currency basis |
+13.7% |
+15.9% |
+13.8% |
+9.2% |
|
|
|
|
|
EBIT Margin |
7.9% |
12.2% |
13.6% |
14.2% |
Adjusted EBIT Margin |
8.2% |
13.8% |
14.0% |
14.7% |
|
|
|
|
|
EPS (in euros)* |
0.28 |
1.05 |
4.52 |
5.30 |
Adjusted EPS (in euros) |
0.57 |
1.23 |
5.12 |
5.70 |
|
|
|
|
|
Free Cash Flow before acquisitions and
disposals |
53.0 |
106.5 |
203.7 |
248.7 |
Net Cash Position |
359.9 |
385.4 |
359.9 |
385.4 |
* Corrected to take into account the Virtual Power Purchase
Agreement accounting in 2022
Update on our 2025 Strategic Plan
(Horizon)
At our Investor Update on September 11, 2023, we
outlined how our Horizon Plan has shaped the future of our business
and accelerated sustainable, profitable growth since its launch in
November 2020.
Confirming the following Horizon
objectives by year-end 2025:
- Annual net sales: growth of 5-7% at
constant currencies
- Adjusted EBIT margin: approx.
150bps improvement from the 2022 level of 14.0%
- Free cash flow: above €220 million
in 2024, above €240 million in 20254
During 2023, we made great progress on
our 2025 strategic goals:
Deliver more Sustainable
Growth
- We reinforced our marketing
capabilities and innovative campaigns to drive category
growth. In the US, EZ Reach utility pocket lighters reached 5.8% of
market share in value, up +0.4 points fueled by strong distribution
and in-store visibility in the Modern Mass market. In the Blade
Excellence division, our latest shaver innovations Easy Rinse and
Soleil Escape both outpaced the market and gained a combined total
of 1.8 pts in value share.
- Innovation
continued to flourish, with 9.5% of sales coming from new products
introduced in the last three years, up 0.5 pts versus last year.
The number of patents granted, one of our input indicators which
reflects our innovation pipeline, remains strong and in line with
our Horizon aspirations.
- We continued to focus on expanding
our presence both offline and online. eCommerce
online sales represented 12.7% of the Group’s net sales in 2023,
growing 13% at constant currency driven by the B2B channel in key
countries notably US, France and Brazil.
- In line with our Revenue
Growth Management discipline, our
strategic emphasis on crafting a consumer-focused product lineup
led to a Net Sales per SKU growth of 21.4% and a 9% reduction of
total SKU count, outpacing our objectives. The resulting price and
mix benefit successfully outpaced volume and inflation
headwinds.
- Our B2B business BIC Blade
Tech was impacted by clients’ revised business plans.
However, in the fourth quarter it secured agreements with three new
clients. These partnerships are promising and are expected to bear
fruit in 2024. Additionally, we have reached an agreement with our
largest customer to test additional product launches in 2024.
Execute Operating
Efficiencies
- We continued to drive excellence in
procurement in 2023. We delivered additional direct and indirect
savings mainly driven by plastics and packaging value engineering,
as well as electricity hedging in France. This contributed, in
part, to our strong gross profit margin improvement of 240 basis
points in 2023.
- After a strong start in 2022, we
intensified our efforts in value engineering, identifying close to
€10 million of savings validated to date.
Capture Cash Every Day
- Free cash flow in 2023 was strong
at €248.7 million driven by strong operational performance coupled
with an improved working capital control.
- Faster cash collection improved our
accounts receivables in days (DSO), in addition to better inventory
optimization that ensured strong customer services.
Fourth quarter and FY 2023 key
highlights
in million euros |
Q4 2022 |
Q4 2023 |
FY 2022 |
FY 2023 |
Net Sales |
526.7 |
526.1 |
2,233.9 |
2,263.3 |
Gross Profit |
243.2 |
271.6 |
1,078.0 |
1,148.1 |
Gross Profit margin |
46.2% |
51.6% |
48.3% |
50.7% |
EBITDA |
72.4 |
102.3 |
404.5 |
422.8 |
EBIT |
41.6 |
64.2 |
303.5 |
320.5 |
EBIT margin |
7.9% |
12.2% |
13.6% |
14.2% |
Non-recurring items |
1.6 |
8.5 |
8.2 |
12.6 |
Adjusted EBIT |
43.2 |
72.7 |
311.7 |
333.1 |
Adjusted EBIT margin |
8.2% |
13.8% |
14.0% |
14.7% |
FY 2023 net sales increased
9.2% at constant currency (including +5.5 points from Argentina).
Q4 2023 net sales increased 15.9% at constant
currency (including +13.5 points impact from Argentina) overall
driven by double digit growth in Latin America and robust
performance in Europe notably in the Blade Excellence division.
FY 2023 gross profit margin increased
2.4 points to 50.7%, favorably impacted by strong
price/mix and manufacturing and procurement efficiencies. This was
partially offset by input cost inflation (raw material and
electricity costs), unfavorable fixed cost absorption and forex
(mainly due to USD/MXN, USD/ARS, and EUR/TRY, while EUR/USD hedging
was favorable), as well as negative mix from less contribution from
US Lighter sales.
Q4 2023 gross profit margin increased
5.4 points to 51.6%, driven by strong price and mix, lower
raw material costs and manufacturing efficiencies. This was
partially offset by unfavorable fixed cost absorption and
unfavorable forex (mainly due to USD/MXN, USD/ARS and EUR/TRY,
while EUR/USD hedging is favorable).
FY 2023 adjusted EBIT margin reached
14.7%, versus 14.0% in FY 2022. This was a result of gross
profit improvements which were partially offset by increased
operating expenses and brand support investments.
Q4 2023 adjusted EBIT margin increased
5.6 points to 13.8% versus 8.2% in Q4 2022, mainly driven
by strong gross profit improvements and lower operating expenses
and brand support investments as percentage of net sales.
Key components of the change in adjusted EBIT
margin
Key components of the change in Adjusted EBIT
margin |
Q1 2023 vs. Q1 2022 |
Q2 2023 vs. Q2 2022 |
Q3 2023 vs. Q3 2022 |
Q4 2023 vs. Q4 2022 |
FY 2023 vs. FY 2022 |
(in points) |
· Change in Gross
Profit |
(2.0) |
+1.1 |
+5.4 |
+5.4 |
+2.4 |
· Brand Support |
(1.2) |
+0.3 |
(0.7) |
- |
(0.5) |
· Operating expenses and
other expenses |
(3.6) |
(1.4) |
(0.8) |
+0.2 |
(1.2) |
Total change in Adjusted EBIT margin |
(6.8) |
- |
+3.9 |
+5.6 |
+0.7 |
Net income and earnings per share (EPS)
in million euros |
Q4 2022 |
Q4 2023 |
FY 2022 |
FY 2023 |
EBIT |
41.6 |
64.2 |
303.5 |
320.5 |
Finance revenue/costs* |
(22.7) |
(3.5) |
(26.1) |
(7.5) |
Income before Tax* |
18.9 |
60.6 |
277.4 |
313.0 |
Net Income Group share* |
12.4 |
45.1 |
198.6 |
226.5 |
Adjusted Net Income Group Share |
25.1 |
52.7 |
225.2 |
243.4 |
Adjusted EPS Group Share (in euros) |
0.57 |
1.23 |
5.12 |
5.70 |
EPS Group Share (in euros)* |
0.28 |
1.05 |
4.52 |
5.30 |
* Corrected to take into account the Virtual Power Purchase
Agreement accounting in 2022
FY 2023 finance revenues/costs
increase versus last year was mainly due to the 2022 fair value
adjustment related to the Virtual Power Purchase Agreement in
Greece. 2023 income from cash and cash equivalents also increased
versus the previous period due to higher interest rates, especially
on euro, on US dollar and on Argentinean peso. Net Income
Group share stood at €226.5 million versus €198.6 million
last year. FY 2023 effective tax rate was 27.6%
vs. 28.4% for FY 2022.
Change in net cash position
Change in net cash position |
FY 2022 |
FY 2023 |
in million euros |
Net Cash position (beginning of period –
December) |
400.1 |
359.9 |
Net cash from operating activities |
+300.0 |
+353.3 |
· Of which operating cash
flow |
+428.0 |
+469.2 |
· Of which change in
working capital |
(29.2) |
(27.4) |
· Others5 |
(98.8) |
(88.5) |
Capital expenditures6 |
(96.3) |
(104.6) |
Dividend payment |
(94.7) |
(110.2) |
Share buyback program7 |
(54.5) |
(116.2) |
Net cash from the liquidity contract |
+0.7 |
+0.3 |
Proceed from Pimaco divestiture |
1.1 |
- |
Acquisitions8 |
(73.8) |
- |
Other items |
(22.7) |
+2.9 |
Net Cash position (end of period – December) |
359.9 |
385.4 |
FY 2023 Operating Cash flow was €469.2
million, fueled by solid business performance. The €27.4
million negative change in Working Capital was driven by a decrease
in Inventory levels, more than offset by higher Trade Receivables
and a decrease in Trade Payables. FY 2023 Free Cash Flow
before acquisitions and disposals was €248.7 million. The
Net Cash position at the end of December was
€385.4 million, after dividend payments and €116.2 million in share
buybacks.
Shareholders’ remuneration
- An ordinary
dividend of €2.56 per share was paid on May 31, 2023.
- €116.2 million
in share buybacks were completed by Société BIC at the end of 2023.
This includes €100 million of share buyback for cancellation and
€16.2 million of free shares to be granted (long term incentives).
1,951,722 shares were purchased at an average price of €59.52 per
share.
Operational Trends by
Division
Human Expression
in million euros |
Q4 2022 |
Q4 2023 |
FY 2022 |
FY 2023 |
Volumes in million units |
- |
- |
6,523.9 |
6,073.3 |
% Change |
- |
- |
+11.7% |
(6.9)% |
Net Sales |
175.6 |
170.9 |
838.8 |
845.9 |
Change as reported |
+14.7% |
(2.7)% |
+22.7% |
+0.8% |
Change on a comparative basis |
+2.5% |
(1.6)% |
+11.8% |
+2.5% |
Change at constant currency |
+11.4% |
+20.2% |
+16.9% |
+10.2% |
|
|
|
|
|
Adjusted EBIT |
(8.9) |
(0.0) |
25.4 |
60.5 |
Adjusted EBIT Margin |
(5.1)% |
(0.0)% |
3.0% |
7.2% |
The Human Expression
division’s FY 2023 Net Sales grew by 10.2% at
constant currency driven by growth in Latin America, Europe and
Middle East and Africa. Positive price and mix contribution through
further innovation and trade-up, was partially offset by lower
volumes in Developed Markets.
In Europe, the geographical
expansion in the Eastern countries, combined with BIC’s focus on
its iconic products, such as 4-Colors, drove a mid-single-digit
growth at constant currency. Net Sales were boosted by a new range
of 4-Colors, Media Clic, and Super Clip. BIC gained market share in
key countries such as France and the UK9, both online and offline,
thanks to its value-for-money positioning which is increasingly
relevant to consumers.
In the US, net sales were
driven by both core products (Correction Tape and Mechanical
Pencil) as well as our Skin Creative segment (Inkbox semi-permanent
tattoos and Bodymark tattoo marker), in line with the Horizon
strategy to grow in innovative segments.
Despite a declining market, BIC remains a great
value-for-money brand appealing to consumers and therefore
maintained its market share notably boosted by Mechanical Pencil,
Correction Tape, Highlighters, and Gel segments. Also strengthening
its digital capabilities, BIC continued to grow in e-commerce,
growing net sales by double digits and gaining 1.0 pts of market
value share10.
In Latin America, net sales
grew by double digits in Brazil, driven by favorable price and mix.
Key products such as 4-Colors and Coloring Felt Pen grew double
digit, boosted by strong commercial execution with major
clients.
In the Middle East and Africa,
net sales grew by double digits, fueled by both volume and price.
Several key regions contributed to growth, such as West Africa and
South Africa, which was driven by a strong Back to School
sell-in.
FY 2023 Human
Expression division adjusted EBIT margin was 7.2%
versus 3.0% in FY 2022. The increase was driven by a favorable
price/mix, lower raw material costs, brand support investments, and
manufacturing efficiencies. This was partially offset by
unfavorable currency fluctuations, mainly the US dollar/Mexican
peso, unfavorable fixed cost absorption, and higher operating
expenses.
Q4 2023 Human Expression division
adjusted EBIT margin improved from -5.1% to 0%
versus prior year. This was driven by gross profit increase
(favorable pricing and mix and lower cost of production including
raw material and electricity) as well as lower brand support and
operating expenses. This was partially offset by unfavorable forex
(mainly due to USD/MXN, USD/ARS and EUR/TRY).
Flame for Life
in million euros |
Q4 2022 |
Q4 2023 |
FY 2022 |
FY 2023 |
Volumes in million units |
- |
- |
1,647.4 |
1,603.2 |
% Change |
- |
- |
+4.9% |
(2.7)% |
Net Sales |
219.6 |
217.1 |
871.6 |
851.5 |
Change as reported |
+21.7% |
(1.1)% |
+21.3% |
(2.3)% |
Change on a comparative basis |
+10.9% |
+1.7% |
+10.1% |
(0.3)% |
Change at constant currency |
+12.3% |
+7.8% |
+11.2% |
+3.3% |
|
|
|
|
|
Adjusted EBIT |
63.8 |
69.0 |
305.5 |
290.4 |
Adjusted EBIT Margin |
29.1% |
31.8% |
35.0% |
34.1% |
The Flame for Life division’s FY 2023
Net Sales grew by 3.3% at constant currency, positively
driven by distribution gains in Latin America, Europe and the
Middle East and Africa. Volumes were negatively impacted by
performance in the US but grew mid single digit versus pre-covid
levels.
In Europe, net sales grew high
single digit driven by core lighter products and further
distribution gains in Eastern Europe, as well as premium products
such as Djeep and the EZ Reach launch, in line with our strategy to
capture more flame occasions. The EZ Reach pocket utility lighter
was launched into most major markets in Europe and accounted for
almost 20% of total division’s growth versus last year.
In the US, the total lighter
market declined by 6.3% in volume and 2.8% in value11. However, BIC
maintained its leadership position, gaining share in volume, +0.7
pts, and value, +1.3 pts boosted by the utility segment. Our EZ
Reach lighter reached 5.8% of market share in value12, up +0.4
points thanks to strong distribution and in-store visibility in the
Modern Mass market. In 2023, the US lighters business performance
was negatively impacted by an unfavorable comparative basis in Q1
2023 as a result of negative phasing versus Q1 2022 (which
benefited from delayed shipments following supply issues in Q4
2021) as well as competitive imports coming from Asia.
In Latin America, Brazil net
sales grew double digit driven by favorable price and mix, as well
as increased distribution of decorated and utility lighters. The
launch of the BIC EZ Reach utility pocket lighter in the fourth
quarter was successful and contributed to net sales
performance.
In Middle East and Africa, net
sale performance was driven by distribution expansion across the
regions, notably Morrocco, Egypt and South Africa.
FY 2023 Flame for Life division adjusted
EBIT margin reached 34.1% versus 35.0% in FY 2022
driven by higher raw material costs, unfavorable fixed cost
absorption, negative mix from less contribution from US
Lighter sales, as well as increase in brand support investment
(EZ Reach launch in Europe) and operating expenses. This was partly
offset by strong price and favorable EUR/USD hedging.
Q4 2023 Flame for Life division adjusted
EBIT margin improved to 31.8%, versus 29.1% in Q4
2022. This improvement is mainly driven by favorable pricing,
lower raw material costs, favorable EUR/USD hedging as well as
manufacturing efficiencies. This was partially offset by higher
brand support investments.
Blade Excellence
in million euros |
Q4 2022 |
Q4 2023 |
FY 2022 |
FY 2023 |
Volumes in million units |
- |
- |
2,350.9 |
2,428.3 |
% Change |
- |
- |
+1.3% |
+3.3% |
Net Sales |
124.0 |
129.4 |
497.0 |
536.8 |
Change as reported |
+28.9% |
+4.4% |
+23.9% |
+8.0% |
Change on a comparative basis |
+16.4% |
+8.6% |
+12.7% |
+11.6% |
Change at constant currency |
+20.6% |
+24.3% |
+14.6% |
+17.8% |
|
|
|
|
|
Adjusted EBIT |
10.1 |
21.9 |
66.6 |
68.4 |
Adjusted EBIT Margin |
8.1% |
16.9% |
13.4% |
12.7% |
FY 2023 Blade Excellence
division net sales grew 17.8% at constant currency, fueled
by higher volumes and market share gains across all key regions13.
This was a result of added value and new products’ robust Net Sales
performance in the 3 to 5 blade and Hybrid ranges, notably in
Europe and Latin America.
In Europe, BIC successfully
grew market share both in Western (France, Italy) and Eastern
Europe (Poland, Romania) thanks to its value for money proposition
in an inflationary environment. Net sales grew double digits,
fueled by distribution gains. The 3 blade (Bic Flex 3) and Hybrid
(Soleil Click and Hybrid Flex 5) segments were the largest
contributors to net sales growth.
In the US, performance was
driven by our innovations including Easy Rinse, Soleil Escape,
Sensitive 5 and Flex 5 Hybrid as consumers shifted to premium
items, supporting BIC’s strategy to grow in these added-value
segments. E-commerce performance added to Net sales growth, growing
double digit thanks to strong execution and the success of new
products. In a declining market, BIC gained market share in both
Male and Female disposable segments and ended the year at +0.3 pts
of total disposables14.
Our trade-up strategy towards a value-added 3
blade-offering, along with volume increases, yielded solid results
in Latin America. Net sales grew double digit in
both Brazil and Mexico driven by the Soleil and Flex ranges as well
as Comfort 3. In Brazil, we continued to develop
our product portfolio manufactured locally. BIC solidified its #2
position, gaining market share in both volume, +0.8 pts, and value,
+0.6 pts15, with further distribution gains and strong commercial
execution through key marketing campaigns on premium products.
In Mexico, innovations like Flex 5 and Soleil
Escape, as well as distribution gains in traditional trade and
Modern Mass Market brought incremental market share growth.
FY 2023 Blade Excellence division
adjusted EBIT margin was 12.7% versus 13.4% in FY
2022 impacted negatively by electricity costs inflation in the
first half of the year, unfavorable forex (mainly the US
dollar/Mexican peso) and unfavorable fixed cost absorption
partially offset by favorable price and mix and manufacturing
efficiencies. The margin was also impacted by higher brand support
investments, mostly related to the launch of BIC® EasyRinse and its
major advertising campaign in the US.
Q4 2023 Blade Excellence division
adjusted EBIT margin reached 16.9% versus 8.1% in Q4
2022, with a strong gross profit improvement driven by
favorable price and mix, lower raw material costs, favorable fixed
cost absorption as well as manufacturing efficiencies. The gross
profit margin improvement was also positively impacted by
favorable EUR/USD hedging.
BIC's sustainable development journey -
update on the writing the future, together 2025
commitments
|
2025 targets |
2023 achievements |
Fostering sustainable innovation in
BIC® products |
100% reusable, recyclable or compostable plastic packaging |
81% Reusable, Recyclable, or Compostable plastics in BIC's products
packaging |
Acting against climate change |
100% renewable electricity |
91% renewable electricity |
Committing to a safe work environment |
Zero accidents across all operations |
+37% improvement in the number of lost time incidents (Employees
and external temporary), 80% of total BIC sites reached a
zero-accident level, |
Proactively involving suppliers |
Work responsibly with its strategic suppliers to ensure the most
secure, innovative, and efficient sourcing |
83% of strategic suppliers have integrated the responsible
purchasing program |
Improving lives through education |
Improve learning conditions for an estimated 250 million
children globally |
Estimated number of children with improved learning conditions: 199
million (cumulative since 2018) |
In line with our Sustainable Development
journey, we progressed on our goals during 2023 and moved a step
forward towards reducing our overall carbon footprint:
- We achieved the
following extra financial ratings: CDP A-, Moody’s 58/100 - Robust,
MSCI AAA, ISS C+.
- BIC was ranked
12 out of 120 companies for the French award called “Top ranking
for the number of women in companies” management bodies (SBF 120)
organized by convictionRH and recognized by the French Ministry of
Gender Equality.
- In 2023, BIC
carried out several initiatives with sustainable benefits in Blade
Excellence:
- The BIC
EasyRinse shaver was launched in Q1, a long-lasting shaver that
saves water with up to 60% less time rinsing. It offers refillable
options and is made out of recycled content. The Women’s refillable
version is made with 34% recycled plastic and 58% recycled
rubber;
- The Flex 5
Disposable shaver, a key added-value product in our portfolio, was
enhanced with 80% recycled blister shell and a 100% recycled insert
card.
Appendix
2024 Market
Assumptions
Our 2024 outlook is based on the
following market
assumptions216:
Market trends (in value):
-
Europe:
- Low to
mid-single digit decrease in Stationery market;
- Low-single digit
decrease in Lighters market;
- Low to
mid-single digit increase in Shavers market;
- US:
- 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 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 in Lighters market;
- Mid to
high-single digit increase in Shavers market;
-
India: Mid to high-single-digit increase in
Stationery market.
Adjusted EBIT margin
drivers:
- Gross Profit:
- Higher input costs inflation
- Unfavorable fixed costs
absorption
- Unfavorable country mix due to
growth in emerging markets
- Slightly favorable pricing
- Manufacturing and procurement
efficiencies
- Adjusted EBIT:
- Favorable operating leverage
- Slight increase in Brand Support
and R&D in line with Net Sales growth
Free Cash Flow before Acquisitions and
Disposals drivers:
- Reducing cash conversion cycle
through Working capital improvements
- EBIT margin expansion
- Approximately €110 million in
capital expenditures
Currency: 2024 EUR/USD hedging
rate: 1.08
2023 miscellaneous
events and Governance
March 31: Héla Madiouni was
appointed as Director representing the employees for the Board of
Directors of Société BIC. She replaced Inna Kostuk who resigned on
October 14, 2022. May 16: Véronique Laury and
Carole Callebaut Piwnica were appointed as Directors. Candace
Matthews, Jacob (Jake) Schwartz and Timothée Bich were renewed as
Directors. September 11: During its 2023 Investor
Update, BIC delivered an interim update on its five-year Horizon
Strategic Plan (for 2025).October 26: Pascal
Chevallier was appointed as Director representing the employees to
the Board of Directors of Société BIC. He replaced Vincent Bedhome,
whose term has expired.
Net sales by geography
Q4 net sales by geography |
Q4 2022 |
Q4 2023 |
% As reported |
% at constant currencies |
% On a comparative basis |
in million euros |
Group |
526.7 |
526.1 |
(0.1)% |
+15.9% |
+2.4% |
Europe |
139.1 |
141.3 |
+1.6% |
+6.8% |
+6.8% |
North America |
219.1 |
198.7 |
(9.3)% |
(4.5)% |
(4.5)% |
Latin America |
102.4 |
128.4 |
+25.4% |
+82.9% |
+15.5% |
Middle East and Africa |
34.4 |
29.2 |
(14.9)% |
+3.0% |
+3.0% |
Asia and Oceania (including India) |
31.8 |
28.4 |
(10.5)% |
(4.8)% |
(4.8)% |
FY net sales by geography |
FY 2022 |
FY 2023 |
% As reported |
% at constant currencies |
% On a comparative basis |
in million euros |
Group |
2,233.9 |
2,263.3 |
+1.3% |
+9.2% |
+3.5% |
Europe |
636.7 |
665.9 |
+4.6% |
+9.0% |
+8.9% |
North America |
954.9 |
882.9 |
(7.5)% |
(4.8)% |
(5.1)% |
Latin America |
390.6 |
461.7 |
+18.2% |
+42.6% |
+12.0% |
Middle East and Africa |
136.4 |
154.2 |
+13.1% |
+26.6% |
+26.6% |
Asia and Oceania (including India) |
115.3 |
98.6 |
(14.6)% |
(7.9)% |
(7.9)% |
Net sales by division
Q4 net sales by division |
Q4 2022 |
Q4 2023 |
Change as reported |
FX impact |
Change in Perimeter] |
Argentina impact |
Change on a Comparative basis |
in million euros |
(in points) |
(in points) |
(in points) |
Group |
526.7 |
526.1 |
(0.1)% |
(4.5) |
- |
+2.017 |
+2.4% |
Stationery- Human Expression |
175.6 |
170.9 |
(2.7)% |
(4.4) |
- |
+3.3 |
(1.6)% |
Lighters- Flame for Life |
219.6 |
217.1 |
(1.1)% |
(3.9) |
- |
+1.1 |
+1.7% |
Shavers- Blade Excellence |
124.0 |
129.4 |
+4.4% |
(5.9) |
- |
+1.7 |
+8.6% |
Other Products |
7.5 |
8.6 |
+14.6% |
(0.9) |
- |
- |
+15.5% |
FY net sales by division |
FY 2022 |
FY 2023 |
Change as reported |
FX impact |
Change in Perimeter |
Argentina impact |
Change on a Comparative basis |
in million euros |
(in points) |
(in points) |
(in points) |
Group |
2,233.9 |
2,263.3 |
+1.3% |
(3.1) |
+0.2 |
+0.718 |
+3.5% |
Stationery- Human Expression |
838.8 |
845.9 |
+0.8% |
(3.2) |
+0.3 |
+1.2 |
+2.5% |
Lighters- Flame for Life |
871.6 |
851.5 |
(2.3)% |
(2.5) |
- |
+0.5 |
(0.3)% |
Shavers- Blade Excellence |
497.0 |
536.8 |
+8.0% |
(4.1) |
- |
+0.5 |
+11.6% |
Other Products |
26.6 |
29.1 |
+9.3% |
(1.1) |
- |
- |
+10.4% |
Change in Perimeter and Currency Fluctuations Impact on
Net Sales
Impact of Change in Perimeter and Currency Fluctuations on
Net Sales (excludes ARS) in % |
Q4 2022 |
Q4 2023 |
FY 2022 |
FY 2023 |
Perimeter |
+1.5 |
- |
+1.4 |
+0.2 |
Currencies |
+8.9 |
(4.5) |
+8.8 |
(3.1) |
of which USD |
+5.5 |
(2.0) |
+5.7 |
(1.1) |
of which BRL |
+1.6 |
+0.1 |
+1.3 |
+0.1 |
of which MXN |
+1.0 |
+0.5 |
+0.7 |
+0.5 |
of which CAD |
+0.1 |
(0.1) |
+0.3 |
(0.2) |
of which ZAR |
- |
(0.3) |
+0.0 |
(0.2) |
of which NGN |
+0.1 |
(0.6) |
+0.1 |
(0.4) |
of which TRY |
(0.2) |
(0.4) |
(0.5) |
(0.4) |
of which INR |
- |
(0.1) |
+0.2 |
(0.1) |
of which RUB and UAH |
+0.7 |
(1.0) |
+0.6 |
(0.8) |
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 % |
FY 2022 |
FY 2023 |
+/- 5% change in USD impact on Net Sales |
2.1 |
1.9 |
+/- 5% change in USD impact on IBT* |
1.3 |
0.8 |
* Corrected to take into account the Virtual Power Purchase
Agreement accounting in 2022
EBIT by division
EBIT by division |
Q4 2022 |
Q4 2023 |
FY 2022 |
FY 2023 |
in million euros |
Group |
41.6 |
64.2 |
303.5 |
320.5 |
Margin |
7.9% |
12.2% |
13.6% |
14.2% |
Stationery- Human Expression |
(9.7) |
(6.1) |
21.3 |
51.1 |
Margin |
(5.5) % |
(3.6)% |
2.5% |
6.0% |
Lighters- Flame for Life |
63.3 |
67.6 |
304.0 |
288.6 |
Margin |
28.8% |
31.1% |
34.9% |
33.9% |
Shavers- Blade Excellence |
9.8 |
21.1 |
64.1 |
67.3 |
Margin |
7.9% |
16.3% |
12.9% |
12.5% |
Other Products |
1.0 |
0.7 |
(2.8) |
(1.0) |
Unallocated costs |
(22.8) |
(19.1) |
(83.0) |
(85.5) |
Adjusted EBIT by division
Adjusted EBIT by division |
Q4 2022 |
Q4 2023 |
FY 2022 |
FY 2023 |
in million euros |
Group |
43.2 |
72.7 |
311.7 |
333.1 |
Margin |
8.2% |
13.8% |
14.0% |
14.7% |
Stationery- Human Expression |
(8.9) |
- |
25.4 |
60.5 |
Margin |
(5.1)% |
(0.0)% |
3.0% |
7.2% |
Lighters- Flame for Life |
63.8 |
69.0 |
305.5 |
290.4 |
Margin |
29.1% |
31.8% |
35.0% |
34.1% |
Shavers- Blade Excellence |
10.1 |
21.9 |
66.6 |
68.4 |
Margin |
8.1% |
16.9% |
13.4% |
12.7% |
Other Products |
1.0 |
0.9 |
(2.8) |
(0.8) |
Unallocated costs |
(22.8) |
(19.1) |
(83.0) |
(85.5) |
Condensed Profit & Loss
Condensed Profit and Loss |
Q4 2022 |
Q4 2023 |
FY 2022 |
FY 2023 |
in million euros |
Net Sales |
526.7 |
526.1 |
2,233.9 |
2,263.3 |
Cost of goods |
283.5 |
254.5 |
1,155.9 |
1,115.2 |
Gross profit |
243.2 |
271.6 |
1,078.0 |
1,148.1 |
Administrative & net other operating expenses/ (gain) |
201.6 |
207.4 |
774.5 |
827.6 |
EBIT |
41.6 |
64.2 |
303.5 |
320.5 |
Finance revenue/costs* |
(22.7) |
(3.5) |
(26.1) |
(7.5) |
Income before tax* |
18.9 |
60.6 |
277.4 |
313.0 |
Income tax expense* |
(6.4) |
(15.6) |
(78.8) |
(86.5) |
Net Income Group Share* |
12.4 |
45.1 |
198.6 |
226.5 |
Earnings per Share Group Share (in euros)* |
0.28 |
1.05 |
4.52 |
5.30 |
Average number of shares outstanding (net of treasury shares) |
43,974,525 |
42,740,269 |
43,974,525 |
42,740,269 |
* Corrected to take into account the Virtual Power Purchase
Agreement accounting in 2022
Balance Sheet
Balance Sheet in million euros |
December 31, 202219 |
December 31, 2023 |
Assets |
· Property, plant &
equipment |
612.6 |
623.4 |
· Investment
properties |
1.6 |
1.0 |
· Goodwill and intangible
assets |
407.4 |
382.3 |
· Other non-current
assets |
166.3 |
151.0 |
Non-current assets |
1,187.9 |
1,157.7 |
· Inventories |
588.3 |
558.0 |
· Trade and other
receivables |
414.7 |
403.5 |
· Other current
assets |
62.4 |
40.6 |
· Other current financial
assets and derivative instruments |
17.3 |
19.8 |
· Cash and cash
equivalents |
416.3 |
467.7 |
Current assets |
1,499.0 |
1,489.6 |
Total Assets |
2,686.9 |
2,647.3 |
Liabilities & Shareholders’ Equity |
Shareholders' equity |
1,866.0 |
1,846.6 |
· Non-current
borrowings |
42.8 |
46.8 |
· Other non-current
liabilities |
173.0 |
167.6 |
Non-current liabilities |
215.8 |
214.4 |
· Trade and other
payables |
181.1 |
144.7 |
· Current borrowings |
76.5 |
109.4 |
· Other current
liabilities |
347.4 |
332.2 |
Current liabilities |
605.1 |
586.3 |
Total Liabilities & Shareholders' Equity |
2,686.9 |
2,647.3 |
Working Capital and Cash Flow
Working Capital in million euros |
FY 2022 |
FY 2023 |
Total Working Capital |
557.0 |
560.0 |
Of which, inventories |
588.3 |
558.0 |
Of which, trade and other receivables |
414.7 |
403.5 |
Of which, Trade and other payables |
(181.1) |
(144.7) |
Cash Flow Statement |
FY 2022 |
FY 2023 |
in million euros |
Group Net income |
198.6 |
226.5 |
- Amortization and
provisions |
128.2 |
138.2 |
- Other non cash
transactions |
101.2 |
104.5 |
Cash Flow from operations |
428.0 |
469.2 |
- (Increase)/decrease in
net current working capital |
(29.2) |
(27.4) |
- Others |
(98.0) |
(88.5) |
Net cash from operating activities (A) |
300.0 |
353.3 |
- Capital
expenditures20 |
(96.3) |
(104.6) |
- Proceed from Pimaco
divestiture |
1.1 |
- |
- Acquisition |
(73.8) |
- |
- Others |
(3.5) |
(9.5) |
Net cash from investing activities (B) |
(172.5) |
(114.1) |
- Dividends paid |
(94.7) |
(110.2) |
-
Borrowings/(Repayments)/(Loans) |
(5.0) |
32.5 |
- Share buy-back program
& Liquidity program |
(53.8) |
(115.9) |
- Others |
(21.6) |
1.5 |
Net cash from financing activities (C) |
(175.2) |
(192.1) |
Net increase/ (decrease) in cash and cash equivalents net
of bank overdrafts (A+B+C) |
(47.6) |
47.2 |
Opening cash and cash equivalents net of bank
overdrafts |
468.4 |
415.2 |
- Net increase / decrease
in cash and cash equivalents net of bank overdrafts (A+B+C) |
(47.6) |
47.2 |
- Exchange
difference |
(5.6) |
5.3 |
Closing cash and cash equivalents net of bank
overdrafts |
415.2 |
467.7 |
Reconciliation with Alternative Performance
Measures
Adjusted EBIT Reconciliation |
Q4 2022 |
Q4 2023 |
FY 2022 |
FY 2023 |
in million euros |
EBIT |
41.6 |
64.2 |
303.5 |
320.5 |
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) |
+1.6 |
+0.8 |
+4.4 |
+1.9 |
Restructuring costs including US Supply chain relocation plan &
Inkbox reorganization |
- |
+3.3 |
- |
+6.8 |
Ukraine operations impairment |
- |
|
+3.0 |
|
Unfavorable French pensions |
|
+4.4 |
|
+4.4 |
Adjusted EBIT |
43.2 |
72.7 |
311.7 |
333.1 |
Adjusted EPS Reconciliation |
Q4 2022 |
Q4 2023 |
FY 2022 |
FY 2023 |
in euros |
EPS |
0.28 |
1.05 |
4.52 |
5.30 |
Rocketbook earnout and Djeep price adjustment (2022), Lucky
Stationery and Rocketbook earnout (2023) |
- |
- |
+0.06 |
(0.01) |
Argentina hyperinflationary accounting (IAS29) |
+0.03 |
+0.03 |
+0.18 |
+0.12 |
Acquisition costs related to Inkbox (January 2022) and other
acquisition costs (2023) |
+0.03 |
+0.01 |
+0.07 |
+0.03 |
Ukraine operations impairment |
- |
- |
+0.06 |
- |
Restructuring costs including US Supply chain relocation plan &
Inkbox reorganization |
- |
+0.06 |
- |
+0.12 |
Unfavorable French pensions |
- |
+0.08 |
- |
+0.08 |
Virtual Power Purchase Agreement Greece |
+0.23 |
- |
+0.23 |
+0.06 |
Adjusted EPS |
0.57 |
1.23 |
5.12 |
5.70 |
Net Cash Reconciliation |
December 31, 2022 |
December 31, 2023 |
in million euros: rounded figures |
Cash and cash equivalents (1) |
+422.9 |
+477.3 |
Current borrowings (2)21 |
(63.0) |
(91.9) |
Non-current borrowings (3) |
- |
- |
Net Cash Position (1) - (2) – (3) |
359.9 |
385.4 |
Free Cash Flow Reconciliation |
December 31, 2022 |
December 31, 2023 |
in million euros: rounded figures |
Net cash from operating activities (1) |
+300.0 |
+353.3 |
Capital expenditure (2) |
(96.3) |
(104.6) |
Free Cash Flow Before Acquisition and Disposals (1) - (2) |
203.7 |
248.7 |
Share Buyback Program
Société BIC |
Number of shares acquired |
Average weighted price (in €) |
Amount (in €m) |
|
|
January 2023 |
- |
- |
- |
|
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 |
- |
- |
- |
|
August 2023 |
150,048 |
57.35 |
8.6 |
|
September 2023 |
454,535 |
62.43 |
28.4 |
|
October 2023 |
77,100 |
60.08 |
4.6 |
|
November 2023 |
191,600 |
61.88 |
11.9 |
|
December 2023 |
36,990 |
62.66 |
2.3 |
|
Total |
1,951,722 |
59.52 |
116.222 |
|
Capital and Voting Rights
As of December 31, 2023, the total number of issued shares of
Société BIC is 42,270,689 shares, representing:
- 62,516,167
voting rights,
- 62,064,440
voting rights excluding shares without voting rights.
Total number of treasury shares held at the end
of December 2023: 451,727.
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 December 31, 2023, were approved by the Board of Directors on
February 19, 2024. A presentation related to this announcement is
also available on the BIC website (www.bic.com). The Group's
Statutory Auditors have substantially completed their audit
procedures on these consolidated financial statements and the audit
report relating to the certification of these financial statements
will be issued upon completion of the procedures required for the
filing of the universal registration document. 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, "Risks Management" in
BIC's 2022 Universal Registration Document filed with the French
financial markets authority (AMF) on March 30, 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 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 Q4 and FY2023 earnings conference
call and webcast will be hosted by Gonzalve Bich, CEO, and
Chad Spooner, CFO on Tuesday, February 20, 2024 at 8:30 AM
CET time:
- To participate to the webcast:
https://channel.royalcast.com/landingpage/bic/20240220_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
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 |
2024 Agenda
All dates to be confirmed
1st Quarter 2024
Results |
April 23, 2024 (post market close) |
2024
Annual General Meeting |
May 29, 2024 |
2nd Quarter and
1st Half 2024
Results |
July 31, 2024 (post market close) |
3rd Quarter and 9 Months
2024 Results |
October 23, 2024 (post market close) |
1 Subject to the May 29, 2024, AGM approval – Based on
42,270,689 shares excluding treasury shares as of the record date2
See market assumptions page in Appendix3 Excluding Argentina net
sales due to hyperinflationary context4 Above the initial >€200
million objective5 Others include income tax paid and pensions
contribution6 Including +€2.6 million in 2023 and -€2.1 million in
2022 related to capital expenditures payable change7 Includes in
2023 €100 million of share buyback for cancellation and €16.2
million of free shares to be granted (long term incentives)8
Inkbox, Rocketbook & Djeep en 20229 Year to date December 2023:
IRI10 Year to date December 2023: NPD11 Year to date December 2023:
IRI, estimated 70% market coverage12 Year to date December 2023:
Circanan (IRI)13 Year to Date December 2023: IRI, Nielsen14 Year to
Date December 2023: IRI15 Year to Date December 2023: Nielsen16
Euromonitor and BIC estimates 17 includes +13.5 pts from Argentina
at constant currency and -11.5 pts from ARS devaluation18 includes
+5.5 pts from Argentina at constant currency and -4.8 pts from ARS
devaluation19 Corrected to take into account the Virtual Power
Purchase Agreement accounting in 202220 Including +€2.6 million in
2023 and -€2.1 million in 2022 related to capital expenditures
payable change21 Excluding financial liabilities following IFRS16
implementation22 Includes in 2023 €100 million of share buyback for
cancellation and €16.2 million of free shares to be granted (long
term incentives)
- BIC_Q4-FY2023_Results_PressRelease
Societe BIC (EU:BB)
Gráfica de Acción Histórica
De Abr 2024 a May 2024
Societe BIC (EU:BB)
Gráfica de Acción Histórica
De May 2023 a May 2024