This is
a correction of the announcement from 07:15 13.02.2017 CET. Reason
for the correction: Page 7 - Full-year 2016 net sales of
Lighters in Developing markets were stable at actual currency (in
the high-single digits on a constant currency basis).
BIC Group - Press
Release
Clichy - 13 February 2017
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@BicGroup
Full Year 2016 Results
Good and
Well-Balanced 2016 Results in all Consumer Categories
BIC Graphic
Strategic Review partially completed
Proposed Ordinary
Dividend[1] for 2016: 3.45 euros per share (+1.5%)
In million euros |
FY 2016 as
published[2] |
Discontinued
operations2 |
FY 2016 restated for
discontinued operations2 |
Net Sales |
2,025.8 |
246.6 |
2,272.4 |
Change |
+1.6% |
|
+1.4% |
Change on a constant currency basis |
+4.9% |
|
+4.2% |
Gross Profit |
1,065.3 |
79.4 |
1,144.7 |
Normalized2 Income From
Operations |
409.1 |
9.8 |
418.9 |
Normalized IFO margin
excluding the impact of the special employee bonus[3] |
20.6% |
|
18.9% |
Income from Operations |
403.4 |
-48.4 |
355.0 |
Net Income Group Share |
249.7 |
- |
249.7 |
Earnings Per Share Group Share (in euros) |
5.32 |
- |
5.32 |
Normalized Earnings Per Share Group Share (in euros) |
6.24 |
- |
6.24 |
Net cash position |
222.2 |
- |
222.2 |
Bruno Bich,
Chairman and Chief Executive Officer, said: "Our solid 2016 results are further testimony to the quality
and strength of our business model. In a fast-moving and
challenging market environment, such as in Shavers in the U.S., Net
Sales growth was robust and consistent across all consumer
categories. Despite the planned increase in operational investment,
Normalized Income from Operations remained healthy.
In 2017, the
volatility of currencies and the unpredictable global environment
will require increased levels of agility from our teams to ensure
continued success. We plan to deliver mid-single digit organic
growth in Net Sales. We will continue to launch new products and
strengthen our distribution, with a focus on e-commerce in
developed markets.
To enhance
long-term growth, we plan another year of selected investments in
R&D, CAPEX and Brand Support. The total impact of these
investments on Normalized Income From Operations margin will be
approximately -100 basis points compared to 2016, excluding
major currency fluctuations."
FY 2016 Net Sales
were 2,025.8 million euros, up 1.6% (+4.9% on a constant currency
basis).
As Restated for discontinued operations
FY 2016 Net Sales were 2,272.4
million euros, up 1.4% (+4.2% on a constant currency basis). The
negative impact of currency fluctuations (-2.8%) was mainly due to
the depreciation of Latin American currencies against the
euro.
- Consumer
business grew 5.3% on a constant currency basis (Europe +6.5%,
North America +2.7%, Developing Markets +7.5%).
- BIC Graphic
Net Sales decreased by 1.9% on a constant currency basis.
Income From Operations and Normalized Income From
Operations
FY 2016 Gross Profit margin came
in at 52.6%, compared to 51.7% for FY 2015. Excluding the impact of
the special employee bonus in 2016 and the negative impact of the
Argentinian ARS in 2015, Gross Profit margin would have grown by
0.7 points.
FY 2016 Normalized IFO was 409.1
million euros (i.e., a Normalized IFO margin of 20.2% or 20.6%
excluding the impact of the special employee bonus).
As Restated for discontinued operations
FY 2016 Gross
Profit margin came in at 50.4%, compared to 49.7% for FY 2015.
Excluding the impact of the special employee bonus in 2016 and the
negative impact of the Argentinian ARS in 2015, Gross Profit margin
would have grown by 0.9 points. Q4 2016 Gross
Profit margin was 51.6% compared to 48.3% in Q4 2015. Excluding
the negative impact of the Argentinian ARS in 2015, Q4 normalized
Gross Profit would have increased by 2.7%.
FY 2016
Normalized IFO was 418.9 million euros (i.e., a Normalized IFO
margin of 18.4% or 18.9% excluding the impact of the special
employee bonus). Q4 2016 Normalized IFO was
105.8 million euros.
- Consumer
business Normalized IFO margin stood at 21.0% for FY 2016, a
decline of 0.9 points on FY 2015 (down 0.5 points excluding the
impact of the special employee bonus), attributable to increased
investment in brand support and research and development. Q4 2016
Normalized IFO margin was 20.2% compared to 16.9% in Q4 2015.
- BIC Graphic
Normalized IFO margin decreased by 0.9 points for FY 2016 to 2.4%
(if the impact of the special employee bonus is excluded, it was
stable at 3.3%). Q4 2016 Normalized IFO margin was 8.2%, compared
to 11.3% in Q4 2015.
Key components of the change in
Normalized IFO margin
(in % points) |
Q4 2015
vs. Q4 2014 |
Q4 2016
vs. Q4 2015 |
FY 2015
vs. FY 2014 |
FY 2016
vs. FY 2015 |
|
-0.8 |
+2.5 |
+0.6 |
+1.0 |
|
-0.9 |
+0.5 |
-0.3 |
-0.7 |
|
+0.1 |
+0.2 |
-0.2 |
-0.1 |
|
-1.0 |
+0.3 |
-0.1 |
-0.6 |
|
-0.1 |
-0.5 |
+0.3 |
-0.7 |
Total change in Normalized IFO margin
excluding the special employee bonus |
-1.8 |
+2.5 |
+0.6 |
-0.4 |
Special employee bonus |
- |
- |
- |
-0.5 |
|
- |
- |
- |
-0.3 |
|
- |
- |
- |
-0.2 |
Total change in Normalized IFO
margin |
-1.8 |
+2.5 |
+0.6 |
-0.9 |
Non-recurring items |
9M |
Q4 |
FY |
(in million euros) |
2015 |
2016 |
2015 |
2016 |
2015 |
2016 |
Income From Operations |
345.7 |
307.7 |
94.2 |
47.4 |
439.9 |
355.0 |
IFO margin |
20.5% |
18.2% |
16.8% |
8.2% |
19.6% |
15.6% |
Restructuring costs (BIC Graphic, Lighters, Middle-East and
Africa) |
+4.5 |
+5.4 |
- |
+4.9 |
+4.5 |
+10.4 |
Impairment recognized for BIC Graphic North America and
Asia sourcing |
|
|
|
+54.6 |
|
+54.6 |
Divestment of Fuel Cell business (net of restructuring
costs) |
-2.2 |
- |
- |
- |
-2.2 |
- |
Gains
on real estate operations |
- |
- |
-9.2 |
- |
-9.2 |
- |
Retiree Medical Adjustment in the U.S. |
- |
- |
- |
-1.1 |
- |
-1.1 |
Impact of lump sum election for terminated vested pension
participants in the U.S. |
-4.6 |
- |
- |
- |
-4.6 |
|
Impact of the reevaluation of intercompany accounts payable
in Argentina (IAS 21) |
- |
- |
+3.6 |
- |
+3.6 |
- |
Normalized IFO |
343.4 |
313.1 |
88.6 |
105.8 |
432.0 |
418.9 |
Normalized IFO margin |
20.4% |
18.5% |
15.8% |
18.3% |
19.3% |
18.4% |
Special employee bonus |
- |
+11.4 |
- |
- |
- |
+11.4 |
Normalized IFO excluding the special employee
bonus |
343.4 |
324.5 |
88.6 |
105.8 |
432.0 |
430.3 |
Normalized IFO margin excluding the
special employee bonus |
20.4% |
19.2% |
15.8% |
18.3% |
19.3% |
18.9% |
Income before tax fell back to
408.2 million euros, compared to 457.0 million euros for FY 2015.
Net finance revenue was a positive 4.8 million euros compared to a
positive amount of 32.6 million euros for FY 2015.
As Restated for discontinued operations
Income before
tax fell back to 354.3 million euros, compared to 466.7 million
euros for FY 2015. Net finance revenue was a negative 0.8 million
euros compared to a positive amount of 26.8 million euros for FY
2015, due to favorable FY 2015 fair value adjustments to U.S.
dollar denominated financial assets when compared to December 2014.
In Q4 2016, net finance revenue decreased to a positive
1.5 million euros down from a positive 8.9 million euros in Q4
2015.
Net Income From Discontinued Operations
Net Income From Discontinued
Operations was a negative 35.8 million euros compared to a positive
5.8 million euros in 2015, due to the impact of the reassessment of
BIC Graphic North America and Asia Sourcing carrying value.
Net income Group Share was 249.7 million euros in FY 2016, a 23.2%
drop. The effective tax rate in FY 2016 was 29.5%.
As Restated for discontinued operations
Q4 2016 net income Group Share was
36.0 million euros, down by 50.1%.
EPS Group Share was 5.32 euros,
compared to 6.89 euros in FY 2015, down by 22.8%.
As Restated for discontinued operations
Normalized EPS Group Share
decreased by 7.8% period on period, from 6.77 euros in FY 2015 to
6.24 euros in FY 2016. EPS Group Share in Q4 2016 was 0.77 euros
compared to 1.53 euros in Q4 2015, i.e., a 49.7% decrease.
At the end of December 2016, the
Group's net cash position stood at 222.2 million euros.
Change in net cash position
(in million euros) |
2015 |
2016 |
Net Cash position (beginning of the period -
December) |
320.2 |
448.0 |
|
+367.1 |
+298.7 |
- Of which
operating cash flow
|
+435.6 |
+417.2 |
- Of which change
in working capital and others
|
-68.5 |
-118.5 |
|
-120.7 |
-180.8 |
|
-134.8 |
-277.0 |
|
-26.3 |
-81.6 |
|
+9.6 |
+2.5 |
|
+14.0 |
- |
|
+11.6 |
- |
|
+7.3 |
+12.4 |
Net Cash position (end of the period - December) |
448.0 |
222.2 |
Net cash from operating activities
was +298.7 million euros with +417.2 million euros generated in
operating cash flow. The negative 118.5 million euros change
in working capital and other items was mainly related to an
increase in trade receivables due to an increase in Q4 sales. Net
cash was also negatively impacted by increased investments in CAPEX
as well as by dividend payments (including the special dividend)
and share buybacks.
Shareholders' remuneration
In 2016, Shareholders'
Remuneration totaled 358.6 million euros:
-
277.0 million euros related to the payment of
dividends (for the 2015 fiscal year): ordinary dividend of 3.40
euros per share and special dividend of 2.50 euros per share paid
in June 2016.
-
81.6 million euros in share buy-backs at the end
of December 2016 (652,745 shares purchased at an average price of
124.96 euros per share).
2016 Operational Trends by Category (Operating
Segments)
|
Q4 2015 |
Q4 2016 |
Change in % |
Change on a constant currency basis |
FY 2015 |
FY 2016 |
Change
in % |
Change on a constant currency basis |
Stationery |
|
|
|
|
|
|
|
|
Net
Sales |
152.4 |
165.6 |
+8.6% |
+7.8% |
727.0 |
736.6 |
+1.3% |
+5.2% |
IFO |
4.0 |
9.1 |
+126.7% |
|
83.7 |
66.2 |
-20.9% |
|
IFO
margin |
2.6% |
5.5% |
|
|
11.5% |
9.0% |
|
|
Normalized IFO margin |
2.0% |
5.4% |
|
|
11.5% |
9.2% |
|
|
Normalized IFO margin excluding the
special employee bonus |
2.0% |
5.4% |
|
|
11.5% |
9.6% |
|
|
Lighters |
|
|
|
|
|
|
|
|
Net
Sales |
175.0 |
187.9 |
+7.4% |
+5.2% |
675.7 |
696.4 |
+3.1% |
+5.6% |
IFO |
61.1 |
73.7 |
+20.6% |
|
260.9 |
275.3 |
+5.5% |
|
IFO
margin |
34.9% |
39.2% |
|
|
38.6% |
39.5% |
|
|
Normalized IFO margin |
33.7% |
39.1% |
|
|
38.2% |
39.8% |
|
|
Normalized IFO margin excluding the
special employee bonus |
33.7% |
39.1% |
|
|
38.2% |
40.2% |
|
|
Shavers |
|
|
|
|
|
|
|
|
Net
Sales |
108.8 |
117.3 |
+7.8% |
+6.6% |
452.0 |
467.0 |
+3.3% |
+7.0% |
IFO |
19.4 |
18.4 |
-4.8% |
|
83.3 |
68.6 |
-17.6% |
|
IFO
margin |
17.8% |
15.7% |
|
|
18.4% |
14.7% |
|
|
Normalized IFO margin |
16.5% |
15.5% |
|
|
18.5% |
14.9% |
|
|
Normalized IFO margin excluding the
special employee bonus |
16.5% |
15.5% |
|
|
18.5% |
15.4% |
|
|
Other Products |
|
|
|
|
|
|
|
|
Net Sales |
14.6 |
14.2 |
-3.1% |
-3.2% |
67.6 |
61.0 |
-9.8% |
-9.0% |
Total Consumer business |
|
|
|
|
|
|
|
|
Net
Sales |
450.9 |
485.0 |
+7.6% |
+6.1% |
1,922.4 |
1,961.0 |
+2.0% |
+5.3% |
IFO |
80.7 |
98.7 |
+22.4% |
|
426.7 |
407.3 |
-4.6% |
|
IFO
margin |
17.9% |
20.4% |
|
|
22.2% |
20.8% |
|
|
Normalized IFO margin |
16.9% |
20.2% |
|
|
21.9% |
21.0% |
|
|
Normalized IFO margin excluding the
special employee bonus |
16.9% |
20.2% |
|
|
21.9% |
21.4% |
|
|
BIC Graphic |
|
|
|
|
|
|
|
|
Net
Sales |
108.5 |
94.6 |
-12.8% |
-13.6% |
319.3 |
311.5 |
-2.5% |
-1.9% |
IFO |
13.5 |
-51.4 |
NA |
|
13.1 |
-52.2 |
NA |
|
IFO
margin |
12.5% |
-54.3% |
|
|
4.1% |
-16.8% |
|
|
Normalized IFO margin |
11.3% |
8.2% |
|
|
3.3% |
2.4% |
|
|
Normalized IFO margin excluding the
special employee bonus |
11.3% |
8.2% |
|
|
3.3% |
3.3% |
|
|
Full Year 2016
Stationery
full-year 2016 Net Sales increased by 1.3% (+5.2% on a constant
currency basis). Full year 2016 volumes grew by 1.5%.
The Stationery market continued to
show positive momentum in 2016 with mid-single digit growth in
value terms well balanced between developed and developing markets.
In a relentlessly competitive environment, we held on to market
share or made gains in most geographies especially in developing
markets where we had a record year in Brazil and in certain regions
such as the Middle-East and Africa. In line with our strategy, we
have accelerated our R&D and Brand Support investment which
helped fuel our net sales growth and successful new product
launches.
Developed
Markets
- Net Sales registered high-single
digit growth in Europe with market share gains
in most countries thanks to good execution, especially during the
Back-to-School season and enhanced brand support. We actively
supported our products with communication programs such as the "4
colorsTM" TV
campaigns broadcast throughout the region and the coloring campaign
in France, the UK, Spain and Eastern countries.
- Despite a very competitive
environment in North America, Net Sales
registered low-single digit growth, as we continued to benefit from
the success of our "Champion Brand" products such Cristal®,
Atlantis® and Xtra-Fun Graphite pencils with market share gains in
all of their respective segments.
Developing
markets
Net Sales posted low-single digit
growth and most of the regions performed well.
- We continued our successful
expansion in Latin America, supported by
regional advertising campaigns, notably in the ball pen and
coloring segments. In Brazil, BIC reinforced its position with
strong market share gains, driven by higher brand support
investment and in-store visibility; we consolidated our leadership
in the Modern Mass market channel.
- In the Middle-East and Africa, BIC delivered strong growth
along with an outstanding performance in South Africa across the
whole range, particularly in the Ball Pen and Coloring
segments.
- In India,
Cello Pens Net Sales decreased mid-single digit. Domestic sales
were flat in a competitive environment. We continued to streamline
our product portfolio and to focus on higher value-added items such
as the ButterflowTM range.
Full Year 2016 Stationery
normalized IFO margin was 9.2% compared to 11.5% in 2015. Excluding
the impact of the special employee bonus, Normalized IFO margin for Stationery would have been
9.6%. The year-on-year drop is attributable to the impact of an
increase in operating expenses, as well as significant investment
in Brand Support.
Fourth Quarter 2016
Fourth quarter
2016 Net Sales were up 8.6% (+7.8% on a constant currency
basis), with mid-single digit growth in Europe and a solid
performance in North America (high-single digit growth). In
Developing countries, net sales growth was in the high-single
digits thanks to a very good back-to-school sell-in, notably in
Brazil and South Africa. In India, Cello Pens delivered an improved
performance in domestic sales.
Q4 2016
Normalized IFO margin was 5.4% compared to 2.0% in Q4 2015,
attributable to a strong increase in sales, a favorable FX impact
during the quarter and favorable phasing of Brand Support expenses
compared to Q4 2015.
Full Year 2016
Full-year 2016
Net Sales of Lighters grew by 3.1% (+5.6% on a constant currency
basis). Full year 2016 volumes were up 2.3%.
Developed
markets
- In Europe,
growth in Net Sales was in the mid-single digits, driven by Western
Europe and distribution gains in Eastern Europe. In all of these
countries, we benefited from the solid performance of our core
products and our utility lighters.
- North
America achieved mid-single digit growth, driven by the success
of added-value sleeves.
Developing
Markets
Full-year 2016 net sales were
stable at actual currency (in the high-single digits on a constant
currency basis).
- In Latin
America, high-single digit growth in Net Sales was underpinned
by distribution gains especially in Mexico, and despite a tough
business environment in Brazil.
- In the Middle-East and Africa, growth was driven by the North
African region on the back of strong visibility and distribution
gains.
Full-year 2016
Normalized IFO margin for Lighters was 39.8% compared to 38.2%
in 2015. Excluding the impact of the special employee bonus,
Normalized IFO margin for Lighters would have been
40.2%, reflecting a higher gross profit margin.
Fourth Quarter 2016
Fourth quarter
2016 Net Sales were up 7.4% (+5.2% on a constant currency
basis), with a solid performance in North America and a strong
growth in the Middle-East and Africa.
Q4 2016 Normalized IFO margin was 39.1%
compared to 33.7% in Q4 2015 benefiting from a higher gross profit
margin and more favorable absorption of operating expenses.
Full Year 2016
Full-year 2016
Net Sales of Shavers grew by 3.3% (+7.0% on a constant currency
basis). Full-year 2016 volumes were up by 0.6%.
In 2016, we continued to reinforce
our positions in most geographies, especially in Latin America and
Eastern Europe. Thanks to the "Great value" positioning of our
products, consumers continued to use BIC® shavers and our new
products helped us to win new consumers.
Developed Markets
- In Europe,
Full-year Net Sales achieved high-single digit growth with solid
performances in Eastern regions underpinned by distribution gains
and successful new products launches in the region, such as the
BIC® Flex 3 for men and BIC® Simply Soleil® for women.
- In North
America, the total US wet shave market declined by 5.0% at the
end of December 2016. The one-piece segment declined by 6.1%,
reflecting consumer attrition due to less promotional activity and
good performances by private labels. Despite this context, Net
Sales were stable and we gained market share (+1.4 points to
28.0%[6] in value
terms) thanks to our best value/quality positioning across our
entire product range and a very strong new product pipeline (the
BIC® Flex 5 and the BIC® Soleil® Shine shavers).
Developing
Markets
Net Sales posted double-digit
growth, with solid performance across all regions.
- In Latin
America, the increase in sales was driven by the success of all
product ranges (BIC® 3, BIC® Comfort 3 and BIC® Soleil). This
growth was also supported by distribution gains and brand support
investments in the region, such as TV campaigns in Brazil to
promote the BIC® Comfort 3 and BIC® Soleil shavers.
- The Middle-East
and Africa benefited from the good performance across all
regions and in all product ranges, especially in BIC® 1 and BIC® 3
shavers. We maintained our solid positions.
Full-year 2016
Normalized IFO margin for Shavers was 14.9% compared to 18.5%
in 2015. Excluding the impact of the special employee bonus,
Normalized IFO margin for Shavers would have been
15.4%. This year-on-year decrease was due to increased
investment in Research and Development and in brand support.
Fourth Quarter 2016
Fourth quarter
2016 Net Sales were up 7.8% (+6.6% on a constant currency
basis), driven by the good performance in Europe and developing
markets, notably in Latin America.
Q4 2016 Normalized IFO margin was 15.5%,
compared to 16.5% in Q4 2015 due to a negative FX impact on Gross
Profit margin and continued investment in research and
development.
Full-year 2016
Net Sales of Other Consumer Products decreased by 9.8% (-9.0% on a
constant currency basis). Fourth quarter 2016 Net Sales were down
3.1% (-3.2% on a constant currency basis).
BIC Sport registered a
double-digit decline in its full-year Net Sales on a constant
currency basis notably due to an increasingly competitive
environment in the U.S.
Full-year 2016
Normalized IFO for Other Consumer Products was a negative 2.7
million euros (negative 2.5 million euros excluding the impact
of the special employee bonus), compared to a negative 3.4 million
euros in 2015. Q4 2016 Normalized IFO for
Other Consumer Products was a negative 2.5 million euros, compared
to a negative 3.8 million euros in Q4 2015.
BIC Graphic
Full-year 2016 Net Sales decreased by 2.5% (-1.9% on a constant
currency basis). Fourth quarter 2016 Net Sales were down 12.8%
(-13.6% on a constant currency basis).
Customers continued to recognize
the vast expertise of BIC Graphic in the fields of quality, safety
compliance and trademarks. We continued to enhance our customer
service and we benefited from our "Good value" positioning and new
products launches.
Full-year 2016 Normalized IFO margin for BIC
Graphic was 2.4% compared to 3.3% in 2015. Excluding the impact
of the special employee bonus, Normalized IFO
margin would have been 3.3%. Q4 2016 Normalized IFO margin for
BIC Graphic was 8.2% compared to 11.3% in Q4 2015, due to timing
impact in Calendars' sales.
Following the BIC Graphic
strategic review initiated in February 2016 and after conducting a
careful review of the business, the following decisions have been
made:
- BIC Graphic Europe operations
will report to the European BIC Consumer Product business. The
European BIC Graphic team will focus on implementing a plan to
develop a sustainable business model while developing innovative
services and maintaining BIC Graphic's imprinting and decorating
expertise. In Developing Markets, BIC Graphic operations that have
a sustainable business model will report to the local consumer
business.
- Strategic alternative discussions
regarding BIC Graphic North America and the Asia Sourcing
operations are still on-going. We expect to be able to communicate
the outcome of these discussions in the coming weeks.
2017 OPERATIONAL OUTLOOK AND LONG-TERM STRATEGIC
PRIORITIES
2017 operational outlook[7]
In 2017, the volatility of
currencies and the unpredictable global environment will require
increased levels of agility from our teams to ensure continued
success. We plan to deliver mid-single digit organic growth in Net
Sales. We will continue to launch new products and strengthen our
distribution, with a focus on e-commerce in developed markets.
To enhance long-term growth, we
plan another year of selected investments in R&D, CAPEX and
Brand Support. The total impact of these investments on Normalized
Income From Operations margin will be approximately -100 basis
points compared to 2016, excluding major currency fluctuations.
Stationery
In 2017, our objective is to deliver organic sales growth and to
gain market shares through:
-
new product launches, resulting from increased
R&D investment;
-
our strong "champion brand" strategy buoyed by
higher brand support investment;
-
new emerging channels such as e-commerce, in
developed countries;
-
more qualified distribution channels in
developing countries.
Lighters
We will continue to leverage our proven safety and quality classic
and added-value products, to drive sales increases with new
added-value sleeve designs in developed markets. In Developing
countries, we will consolidate our footprint and enhance BIC® brand
awareness.
Shavers
We will continue to enhance product performance and sell at an
affordable price. We expect the U.S. market to continue to
slowdown: in this context, we will step up promotional activities
for our added-value products. We forecast continued growth in Latin
America and Eastern Europe.
Thanks to increased R&D
investment, our growth will be boosted by major new product
launches, including:
-
the BIC® Hybrid
5 shaver, in North America, which offers the best of our
technology (moveable blades, optimized pivot.) at a fair
price;
-
the BIC®
Soleil® Sensitive
shaver, in Latin America, a more advanced version of our BIC®
Soleil® shaver.
-
BIC Shave Club, a direct to
consumer online-only subscription service with a refillable shaver
will be tested in France in Spring 2017.
Group long-term strategic priorities
-
Continue to create long-term value by
outperforming our markets and achieving low to mid-single digit
organic growth in sales, thanks to:
-
expanded distribution networks in all
geographies;
-
increased focus on value-added segments in
developed markets;
-
enlarged consumer base in developing
markets.
-
Grow Normalized Income From Operations through
increased productivity as we invest in our people, in brand support
and in Research and Development with a focus on quality and
innovative new products.
-
Maintain strong cash generation to:
-
continue to grow the business organically,
-
finance strategic bolt-on acquisitions,
-
sustain total Shareholders' remuneration.
Appendix - FY 2016 Results as published
BIC Group Net Sales by
geography
(in million euros) |
|
|
|
FY 2015 |
FY 2016 |
|
Europe |
|
|
|
|
Net
Sales |
|
527.8 |
544.8 |
|
North America |
|
|
|
|
Net
Sales |
|
791.8 |
812.0 |
|
Developing Markets |
|
|
|
|
Net
Sales |
|
673.8 |
669.0 |
|
Condensed profit and loss account as
published
(in million euros) |
|
|
FY 2015 |
FY 2016 |
As published |
|
Net sales |
1,993.4 |
2,025.8 |
+1.6% |
|
Cost of
goods |
962.6 |
960.5 |
|
|
Gross Profit |
1,030.8 |
1,065.3 |
+3.4% |
|
Administrative & other operating expenses |
-606.4 |
-661.9 |
|
|
Income from operations |
424.4 |
403.4 |
-4.9% |
|
Finance
revenue/costs |
32.6 |
4.8 |
|
|
Income before tax |
457.0 |
408.2 |
-10.7% |
|
Income
tax expense |
-136.3 |
-122.7 |
|
|
Net
Income From Continuing Operations |
320.7 |
285.5 |
-11.0% |
|
Net Income From Discontinued Operations |
5.8 |
-35.8 |
NA |
|
Group net income |
326.5 |
249.7 |
-23.5% |
|
Non-controlling interests |
1.4 |
- |
|
|
NET INCOME GROUP SHARE |
325.1 |
249.7 |
-23.2% |
|
Earnings
Per Share From Continuing Operations (in euros) |
6.77 |
6.09 |
|
|
Earnings Per Share From Discontinued Operations (in
euros) |
0.12 |
-0.77 |
|
|
Earnings per share Group share (in
euros) |
6.89 |
5.32 |
-22.8% |
|
Average number of shares outstanding (net of treasury
shares) |
47,173,339 |
46,898,827 |
|
|
Condensed balance sheet as published
(in million euros) |
December 31,
2015 |
December 31,
2016 |
Assets |
|
|
Property, plant &
equipment |
508.5 |
564.4 |
Investment
properties |
2.2 |
2.1 |
Other non-current
assets |
192.9 |
204.2 |
Goodwill and
intangible assets |
421.7 |
372.7 |
Non-current assets |
1,125.3 |
1,143.4 |
Inventories |
478.4 |
468.1 |
Trade and other
receivables |
440.0 |
483.1 |
Other current
financial assets and derivative instruments |
76.3 |
31.1 |
Cash and cash
equivalents |
385.2 |
243.8 |
Other current
assets |
31.0 |
51.5 |
Current assets |
1,410.9 |
1,277.6 |
Assets Held For Sale |
- |
152.7 |
TOTAL ASSETS |
2,536.2 |
2,573.7 |
Liabilities & shareholders' equity |
|
|
Shareholders' equity |
1,849.5 |
1,792.6 |
Non-current
borrowings |
2.4 |
1.4 |
Other non-current
liabilities |
304.3 |
297.8 |
Non-current liabilities |
306.7 |
299.2 |
Trade and other
payables |
124.9 |
118.7 |
Current
borrowings |
7.8 |
49.6 |
Other current
liabilities |
247.2 |
261.3 |
Current liabilities |
379.9 |
429.6 |
Liabilities Held For Sale |
- |
52.3 |
TOTAL
LIABILITIES & SHAREHOLDERS' EQUITY |
2,536.2 |
2,573.7 |
Cash flow statement as
published
(in million euros) |
2015 |
2016 |
Group Net
income |
326.5 |
249.7 |
Net
income from discontinued operations |
5.8 |
-35.8 |
Net income from continuing operations |
320.7 |
285.5 |
Amortization and
provisions |
100.0 |
165.4 |
(Gain)/Loss from
disposal of fixed assets |
-13.0 |
-0.2 |
Others |
22.1 |
2.3 |
CASH FLOW FROM OPERATIONS |
435.6 |
417.2 |
(Increase) / decrease
in net current working capital |
-24.0 |
-62.8 |
Others |
-44.5 |
-55.7 |
Net
Cash from operating activities from continuing operations |
351.4 |
276.2 |
Net
Cash from operating activities from discontinued
operations |
15.7 |
22.5 |
NET CASH FROM OPERATING ACTIVITIES (A) |
367.1 |
298.7 |
Net capital
expenditure |
-105.8 |
-178.9 |
(Purchase)/Sale of
other current financial assets |
-23.8 |
46.1 |
Divestiture of
Sheaffer assets and Fuel Cell business |
14.0 |
0 |
Other
Investments |
1.8 |
0.3 |
Net
Cash from investing activities from continuing
operations |
-108.5 |
-127.2 |
Net
Cash from investing activities from
discontinued operations |
-5.4 |
-5.3 |
NET CASH FROM INVESTING ACTIVITIES (B) |
-113.8 |
-132.5 |
Dividends paid |
-134.8 |
-277.0 |
Repurchase of Cello
Pens minority interests |
-74.0 |
0.0 |
Borrowings/(Repayments) |
-0.1 |
19.8 |
Share buy-back program
net of stock-options exercised |
-16.7 |
-79.1 |
Others |
-2.2 |
-3.2 |
Net
Cash from financing activities from continuing
operations |
-224.2 |
-291,5 |
Net
Cash from financing activities from
discontinued operations |
-3.5 |
-48,0 |
NET CASH FROM FINANCING ACTIVITIES (C) |
-227.8 |
-339.5 |
NET INCREASE/ (DECREASE) IN CASH AND CASH EQUIVALENTS
NET OF BANK OVERDRAFTS (A+B+C) |
25.6 |
-173.2 |
OPENING CASH AND CASH EQUIVALENTS NET OF BANK
OVERDRAFT |
348.5 |
380.6 |
Net increase /
decrease in cash and cash equivalents net of bank overdraft
(A+B+C) |
25.6 |
-173.2 |
Exchange
difference |
6.5 |
10.0 |
CLOSING CASH AND CASH EQUIVALENTS NET OF BANK
OVERDRAFT |
380.6 |
217.4 |
Reconciliation with
Alternative Performance Measures
Normalized IFO reconciliation |
|
(in million euros) |
2015 |
2016 |
Income From Operations |
424.4 |
403.4 |
Restructuring costs |
+4.5 |
+6.6 |
Divestment of Fuel Cell business (net of restructuring
costs) |
-2.2 |
- |
Gains
on real estate operations |
-7.8 |
- |
Impact of lump sum election for terminated vested pension
participants in the U.S. |
-3.1 |
- |
Retiree Medical Adjustment in the U.S. |
- |
-0.9 |
Impact of the reevaluation of intercompany accounts payable
in Argentina (IAS 21) |
+3.6 |
- |
Normalized IFO |
419.4 |
409.1 |
Special employee bonus |
- |
8.8 |
Normalized IFO excluding the special employee
bonus |
419.4 |
417.9 |
Normalized EPS reconciliation |
|
(in euros) |
2015 |
2016 |
EPS |
6.89 |
5.32 |
Impairment recognized
for BIC Graphic North America and Asia sourcing |
|
+0.78 |
Normalized EPS excluding impairment recognized for BIC
Graphic North America and Asia sourcing |
|
6.10 |
Restructuring
costs |
+0.06 |
+0.15 |
Divestment of Fuel
Cell business (net of restructuring costs) |
-0.03 |
|
Gain on real estate
operations |
-0.13 |
|
Impact of lump sum
election for terminated vested pension participants in the
U.S. |
-0.07 |
|
Retiree Medical
Adjustment in the U.S. |
|
-0.01 |
Impact of the
reevaluation of intercompany accounts payable in Argentina (IAS
21) |
+0.05 |
|
Normalized EPS |
6.77 |
6.24 |
Net cash reconciliation
(in million euros - rounded figures) |
December 31,
2015 |
December 31,
2016 |
Cash and cash
equivalents (1) |
385.2 |
243.8 |
Other current
financial assets (2)[8] |
73.0 |
29.4 |
Current borrowings
(3) |
-7.8 |
-49.6 |
Non-current borrowings
(4) |
-2.4 |
-1.4 |
NET CASH POSITION (1) + (2) - (3) - (4) |
448.0 |
222.2 |
Appendix - FY 2016 results restated for
discontinued operations
BIC Group Net Sales by
geography
(in million euros) |
Q4 2016 vs. Q4 2015 |
|
|
FY 2016 vs. FY 2015 |
|
Q4 2015 |
Q4 2016 |
Change
in % |
Constant
currency
basis |
FY 2015 |
FY 2016 |
Change
in % |
Constant
currency
basis |
Group |
|
|
|
|
|
|
|
|
Net Sales |
559.4 |
579.5 |
+3.6% |
+2.3% |
2,241.7 |
2,272.4 |
+1.4% |
+4.2% |
Europe |
|
|
|
|
|
|
|
|
Net
Sales |
118.9 |
116.8 |
-1.7% |
-0.1% |
527.8 |
544.8 |
+3.2% |
+5.3% |
North America |
|
|
|
|
|
|
|
|
Net
Sales |
259.9 |
261.5 |
+0.6% |
-1.0% |
1,040.1 |
1,058.6 |
+1.8% |
+1.8% |
Developing Markets |
|
|
|
|
|
|
|
|
Net Sales |
180.6 |
201.2 |
+11.4% |
+8.5% |
673.8 |
669.0 |
-0.7% |
+7.1% |
|
|
|
|
|
|
|
|
|
Volume
(billions of units per year) |
2015 |
2016 |
Stationery (including Cello Pens) |
6.8 |
6.9 |
Lighters |
1.5 |
1.6 |
Shavers |
2.6 |
2.6 |
Impact of change in perimeter and
currency fluctuations on Net Sales
(in %) |
Q4 2015 |
Q4 2016 |
FY 2015 |
FY 2016 |
Perimeter |
-0.4 |
- |
-0.6 |
- |
Currencies |
+2.0 |
+1.3 |
+7.7 |
-2.8 |
Of which USD |
+6.4 |
+0.7 |
+8.7 |
+0.1 |
Of which BRL |
-3.6 |
+2.1 |
-1.7 |
-0.2 |
Of which ARS |
-0.1 |
-0.8 |
+0.1 |
-0.9 |
Of which INR |
+0.3 |
0.0 |
+0.5 |
-0.2 |
Of which MXN |
-0.4 |
-0.7 |
+0.1 |
-0.8 |
Of which RUB and UAH |
-0.3 |
0.0 |
-0.4 |
-0.2 |
Sensitivity of net sales to key currency
changes
(in % ) |
2015 |
2016 |
+/- 5% change in USD |
+/-2.2 |
+/-2.2 |
+/- 5% change in BRL |
+/-0.4 |
+/-0.4 |
+/- 5% change in MXN |
+/-0.2 |
+/-0.2 |
IFO and Normalized IFO by
category
(in million euros) |
Q4 2015 |
Q4 2016 |
FY 2015 |
FY 2016 |
Group |
|
|
|
|
Income From Operations |
94.2 |
47.4 |
439.9 |
355.0 |
Normalized Income From operations |
88.6 |
105.8 |
432.0 |
418.9 |
Stationery |
|
|
|
|
Income From Operations |
4.0 |
9.1 |
83.7 |
66.2 |
Normalized Income From operations |
3.1 |
8.9 |
83.4 |
67.5 |
Lighters |
|
|
|
|
Income From Operations |
61.1 |
73.7 |
260.9 |
275.3 |
Normalized Income From operations |
59.0 |
73.5 |
257.9 |
277.3 |
Shavers |
|
|
|
|
Income From Operations |
19.4 |
18.4 |
83.3 |
68.6 |
Normalized Income From operations |
18.0 |
18.2 |
83.6 |
69.6 |
Other Products |
|
|
|
|
Income From Operations |
-3.8 |
-2.5 |
-1.2 |
-2.9 |
Normalized Income From operations |
-3.8 |
-2.5 |
-3.4 |
-2.7 |
Total Consumer business |
|
|
|
|
Income From Operations |
80.7 |
98.7 |
426.7 |
407.3 |
Normalized Income From operations |
76.3 |
98.0 |
421.5 |
411.6 |
BIC Graphic |
|
|
|
|
Income From Operations |
13.5 |
-51.4 |
13.1 |
-52.2 |
Normalized Income From operations |
12.3 |
7.8 |
10.4 |
7.3 |
Condensed profit and loss
account
(in million euros) - unaudited |
|
Q4 2016 vs. Q4 2015 |
|
|
FY 2016 vs. FY 2015 |
|
Q4 2015 |
Q4 2016 |
Change
in % |
Constant
currency basis |
FY 2015 |
FY 2016 |
Change
in % |
Constant
currency basis |
Net sales |
559.4 |
579.5 |
+3.6% |
+2.3% |
2,241.7 |
2,272.4 |
+1.4% |
+4.2% |
Cost of
goods |
289.0 |
280.7 |
|
|
1,128.7 |
1,127.7 |
|
|
Gross Profit |
270.4 |
298.8 |
+10.5% |
|
1,113.0 |
1,144.7 |
+2.8% |
|
Administrative & other operating expenses |
176.2 |
251.4 |
|
|
673.1 |
789.7 |
|
|
Income from operations |
94.2 |
47.4 |
-49.7% |
|
439.9 |
355.0 |
-19.3% |
|
Finance
revenue/costs |
8.9 |
1.5 |
|
|
26.8 |
-0.8 |
|
|
Income before tax |
103.1 |
48.8 |
-52.6% |
|
466.7 |
354.3 |
-24.1% |
|
Income
tax expense |
31.0 |
12.8 |
|
|
140.2 |
104.6 |
|
|
Income
from associates |
- |
- |
|
|
- |
- |
|
|
Group net income |
72.1 |
36.0 |
-50.1% |
|
326.5 |
249.7 |
-23.5% |
|
Non-controlling interests |
- |
- |
|
|
-1.4 |
- |
|
|
NET INCOME GROUP SHARE |
72.1 |
36.0 |
-50.1% |
|
325.1 |
249.7 |
-23.2% |
|
Earnings per share Group share (in
euros) |
1.53 |
0.77 |
-49.7% |
|
6.89 |
5.32 |
-22.8% |
|
Average number of shares outstanding (net of treasury
shares) |
47,173,339 |
46,898,827 |
|
|
47,173,339 |
46,898,827 |
|
|
Condensed balance sheet
(in million euros) - unaudited |
December 31,
2015 |
December 31,
2016 |
Assets |
|
|
Property, plant &
equipment |
508.5 |
589.3 |
Investment
properties |
2.2 |
2.1 |
Other non-current
assets |
192.9 |
223.1 |
Goodwill and
intangible assets |
421.7 |
388.0 |
Non-current assets |
1,125.3 |
1,202.5 |
Inventories |
478.4 |
518.9 |
Trade and other
receivables |
440.0 |
522.9 |
Other current
financial assets and derivative instruments |
76.3 |
31.1 |
Cash and cash
equivalents |
385.2 |
243.8 |
Other current
assets |
31.0 |
54.5 |
Current assets |
1,410.9 |
1,371.2 |
TOTAL ASSETS |
2,536.2 |
2,573.7 |
Liabilities & shareholders' equity |
|
|
Shareholders' equity |
1,849.6 |
1,792.6 |
Non-current
borrowings |
2.4 |
1.4 |
Other non-current
liabilities |
304.3 |
300.9 |
Non-current liabilities |
306.7 |
302.3 |
Current
borrowings |
7.8 |
49.6 |
Trade and other
payables |
124.9 |
148.8 |
Other current
liabilities |
247.2 |
280.3 |
Current liabilities |
379.9 |
478.7 |
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY |
2,536.2 |
2,573.7 |
Working capital
(in million euros) - unaudited |
|
December
31,
2015 |
December
31,
2016 |
Total Working Capital |
|
605.2 |
686.1 |
Of
which, inventories |
|
478.4 |
518.9 |
Of
which, Trade and other receivables |
|
440.0 |
522.9 |
Of which, Trade and other payables |
|
-124.9 |
-148.8 |
Cash flow statement
(in million euros) - unaudited |
2015 |
2016 |
Group Net income |
326.5 |
249.7 |
Amortization and
provisions |
100.0 |
165.4 |
(Gain)/Loss from
disposal of fixed assets |
-13.0 |
-0.2 |
Others |
22.1 |
2.3 |
CASH FLOW FROM OPERATIONS |
435.6 |
417.2 |
(Increase) / decrease
in net current working capital |
-24.0 |
-62.8 |
Others |
-44.5 |
-55.7 |
NET CASH FROM OPERATING ACTIVITIES (A) |
367.1 |
298.7 |
Net capital
expenditure |
-105.8 |
-178.9 |
(Purchase)/Sale of
other current financial assets |
-23.8 |
46.1 |
Divestiture of
Sheaffer assets and Fuel Cell business |
14.0 |
- |
Other Investments |
1.8 |
0.3 |
NET CASH FROM INVESTING ACTIVITIES (B) |
-113.8 |
-132.5 |
Dividends paid |
-134.8 |
-277.0 |
Repurchase of Cello
Pens minority interests |
-74.0 |
- |
Borrowings/(Repayments) |
-0.1 |
19.8 |
Share buy-back program
net of stock-options exercised |
-16.7 |
-79.1 |
Others |
-2.2 |
-3.2 |
NET CASH FROM FINANCING ACTIVITIES (C) |
-227.8 |
-339.5 |
NET INCREASE/ (DECREASE) IN CASH AND
CASH EQUIVALENTS NET OF BANK OVERDRAFTS
(A+B+C) |
25.6 |
-173.2 |
OPENING CASH AND CASH EQUIVALENTS NET OF BANK
OVERDRAFTS |
348.5 |
380.6 |
Net increase /
decrease in cash and cash equivalents net of bank overdrafts
(A+B+C) |
25.6 |
-173.2 |
Exchange
difference |
6.5 |
10.0 |
CLOSING CASH AND CASH EQUIVALENTS NET OF BANK
OVERDRAFTS |
380.6 |
217.4 |
|
Number of shares
acquired |
Weighted average price in € |
Amount
in M€ |
February
2016 |
117,908 |
126.78 |
14.9 |
March
2016 |
115,379 |
130.22 |
15.0 |
April
2016 |
8,400 |
122.42 |
1.0 |
May
2016 |
91,678 |
124.14 |
11.4 |
June
2016 |
153,660 |
119.11 |
18.3 |
July
2016 |
- |
- |
- |
August
2016 |
- |
- |
- |
September
2016 |
12,021 |
130.98 |
1.6 |
October
2016 |
52,848 |
127.40 |
6.7 |
November
2016 |
63,851 |
124.39 |
7.9 |
December
2016 |
37,000 |
125.30 |
4.6 |
Total |
652,745 |
124.96 |
81.6 |
Capital and voting rights, December 31, 2016
As of December 31, 2016, the total
number of issued shares of SOCIÉTÉ BIC was 47,552,202 shares,
representing:
-
69,098,170 voting rights,
-
68,230,150 voting rights excluding shares
without voting rights.
Total number of treasury shares
held at the end of December 2016: 868,020.
-
Constant currency basis:
constant currency figures are calculated by translating the current
year figures at prior year monthly average exchange rates.
-
Comparative basis: at
constant currencies and constant perimeter. Figures at constant
perimeter exclude the impacts 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.
-
Normalized IFO: normalized
means excluding non-recurring items as detailed on page 3.
-
Normalized IFO margin:
Normalized IFO as percentage of net sales.
-
Net cash from operating
activities: principal revenue-generating activities of the
entity and other activities that are not investing or financing
activities.
-
Net cash position: Cash and
cash equivalents + Other current financial assets - Current
borrowings - Non-current borrowings.
-
FY 2016 as published:
Figures presented within the "as published" caption are taken
directly from the consolidated financial statements as of and for
the 12 month-periods ended December 31, 2015 and 2016 and present
BIC Graphic NAM & Asian Sourcing as discontinued operations in
accordance with IFRS.
-
FY 2016 restated for
discontinued operations: Figures presented within the "restated
for discontinued operations" caption are based on the restatement
of the discontinued activities classification and aim at presenting
information that is consistent with the historical
presentation.
*
*
*
SOCIETE BIC
consolidated and statutory financial statements as of December 31,
2016, were approved by the Board of Directors on February 10, 2017.
The Group's Auditors have performed their audit procedures on the
consolidated financial statements and the audit reports relating to
the certification of the consolidated and statutory financial
statements are in the process of being issued. A presentation
related to this announcement is also available on the BIC website
(www.bicworld.com).
This document contains forward-looking statements.
Although BIC believes its estimates are based on reasonable
assumptions, these statements are subject to numerous risks and
uncertainties. A description of the risks borne by BIC appears in
the "Risk factors" section of BIC's 2015 Registration Document
filed with the French financial markets authority (AMF) on March
23, 2016.
Investor Relations: +33 1 45 19 52 26 |
Press Contacts |
Sophie
Palliez-Capian
sophie.palliez@bicworld.com |
Albane de
La Tour d'Artaise albane.delatourdartaise@bicworld.com |
Katy
Bettach
katy.bettach@bicworld.com |
Priscille
Reneaume: +33 1 53 70 74 70
preneaume@image7.fr |
For more information, please consult the corporate
website: www.bicworld.com
2017
Agenda (all dates to be confirmed)
First
quarter 2017 results |
26 April
2017 |
Conference
call |
2017
AGM |
10 May
2017 |
Meeting -
BIC Headquarters |
Second
quarter 2017 results |
03 August
2017 |
Conference
call |
Third
quarter 2017 results |
25 October
2017 |
Conference
call |
BIC is a world
leader in stationery, lighters, shavers and promotional products.
For more than 60 years, BIC has honored the tradition of providing
high-quality, affordable products to consumers everywhere. Through
this unwavering dedication, BIC has become one of the most
recognized brands in the world. BIC products are sold in more than
160 countries around the world. In 2016, BIC recorded Net Sales of
2,025.8 million euros. The Company is listed on "Euronext Paris"
and is part of the SBF120 and CAC Mid 60 indexes. BIC is also part
of the following Socially Responsible Investment indexes:
CDP's Climate A List, CDP's Supplier Climate A List, CDP Supplier
Engagement Leader Board, FTSE4Good indexes, Ethibel Sustainability
Index (ESI) Excellence Europe, Euronext Vigeo - Eurozone 120,
Euronext Vigeo - Europe 120, Stoxx Global ESG Leaders
Index.
[1] Payable from May 24, 2017 subject to approval at the AGM of
May 10, 2017.
[3] Excluding the special bonus awarded to employees who were
not granted shares under our performance share plan.
[4] Gross Profit margin excluding promotions and investments
related to consumer and business development support.
[5] Total Brand Support: consumer
and business development support + advertising, consumer and trade
support.
[6] Source: IRI total market YTD through 25-DECEMBER-2016
(one-piece shavers) - in value terms.
[7] The 2017 perimeter includes
Stationery, Lighters, Shavers, Other Consumer Products as well as
BIC Graphic operations outside North America and Asia
Sourcing.
[8] In the balance sheet at December 31, 2016, the line "Other
current financial assets and derivative instruments" also includes
1.7M€ worth of derivative instruments.
BIC_FY 2016 Results_Press
Release_13FEB17
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: BIC via Globenewswire
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