BIC Group - Press
Release
Clichy - 26 April 2017
First Quarter 2017 Results
(Accounted for and presented in accordance with IFRS 5,
with BIC Graphic no longer considered as
a separate category or reporting segment [1])
Weakness of U.S. Stationery and Shavers markets impacting
quarterly Net Sales
Full Year 2017 outlook
maintained
· Net Sales: 469.2 million euros, stable as reported and down
4.1% on a constant currency basis[2]
· Normalized2 IFO: 81.3
million euros
o Normalized2 IFO margin:
17.3%
· Net Income Group Share: 49.7 million euros, down
2.7%
o EPS Group Share: 1.06 euros, down
1.9%
· Net cash position: 206.2 million euros
Q1 2017 Key operational figures |
|
Change in Net Sales on a constant currency
basis2 |
Normalized2 IFO margin |
Group |
-4.1% |
17.3% |
Stationery |
-5.1% |
3.6% |
Lighters |
-0.5% |
37.4% |
Shavers |
-7.7% |
12.6% |
Commenting on the
Q1 2017 results, Bruno Bich, Chairman and Chief Executive Officer,
said: "Q1 2017 Net Sales declined by 4.1% on a
constant currency basis, weakened by both Stationery and Shavers in
North America.
With the launch
of BIC® Gel-ocity Quick Dry Gel Pen in the U.S., additional
distribution gains in Developing Markets and the continued solid
performance of our shaver business in Eastern Europe and Latin
America, Full Year 2017 organic Net Sales should grow mid-single
digit, in line with our objectives.
As planned, we
will continue to invest in R&D, CAPEX and Brand Support to fuel
medium and long term profitable growth. The total impact of these
investments on Normalized Income From Operations margin will be
approximately -100 basis points."
Unaudited figures
Key figures (in million
euros) |
Q1 2016 |
Q1 2017 |
Change as reported |
Change on a constant currency basis |
Group |
|
|
|
|
Net Sales |
469.3 |
469.2 |
+0.0% |
-4.1% |
Gross Profit |
236.8 |
245.7 |
|
|
Normalized Income From operations |
81.4 |
81.3 |
-0.1% |
|
Normalized IFO margin |
17.3% |
17.3% |
|
|
Income From Operations |
81.4 |
74.3 |
-8.8% |
|
IFO margin |
17.3% |
15.8% |
|
|
Net Income Group Share |
51.0 |
49.7 |
-2.7% |
|
Earnings Per Share Group Share (in
euros) |
1.08 |
1.06 |
-1.9% |
|
Stationery |
|
|
|
|
Net
Sales |
167.1 |
163.4 |
-2.2% |
-5.1% |
IFO |
8.6 |
0.4 |
|
|
IFO
margin |
5.2% |
0.3% |
|
|
Normalized IFO margin |
5.2% |
3.6% |
|
|
Lighters |
|
|
|
|
Net
Sales |
163.6 |
171.3 |
4.7% |
-0.5% |
IFO |
62.1 |
63.9 |
|
|
IFO
margin |
38.0% |
37.3% |
|
|
Normalized IFO margin |
38.0% |
37.4% |
|
|
Shavers |
|
|
|
|
Net
Sales |
117.8 |
114.4 |
-2.9% |
-7.7% |
IFO |
12.6 |
14.3 |
|
|
IFO
margin |
10.7% |
12.5% |
|
|
Normalized IFO margin |
10.7% |
12.6% |
|
|
Other Products |
|
|
|
|
Net
Sales |
20.8 |
20.1 |
-3.2% |
-4.2% |
IFO |
-1.9 |
-4.3 |
|
|
Normalized IFO |
-1.9 |
-3.0 |
|
|
Q1 2017 Net Sales were 469.2
million euros, stable as reported and down 4.1% on a constant
currency basis. The favorable impact of currency fluctuations
(+4.1%) was mainly due to the appreciation of the U.S. dollar and
Brazilian real against the euro. Europe grew by 2.4% while North
America and Developing markets declined by 9.2% and 3.4%,
respectively, on a constant currency basis.
Income From Operations and Normalized Income From
Operations
Q1 2017 Gross
Profit margin was 52.4%, compared to 50.5% in Q1 2016.
Q1 2017
Normalized IFO was 81.3 million euros.
Key components of the change in
Normalized IFO margin
(in points) |
Q1 2016
vs. Q1 2015 |
Q1 2017
vs. Q1 2016 |
|
-1.4 |
+0.8 |
|
-0.9 |
-0.8 |
|
-0.4 |
-0.1 |
|
-0.5 |
-0.7 |
|
-1.4 |
-1.9 |
Total change in Normalized IFO
margin |
-3.7 |
-1.9 |
Special employee bonus |
-1.9 |
+1.9 |
|
-1.2 |
+1.2 |
|
-0.7 |
+0.7 |
Total change in Normalized IFO
margin |
-5.6 |
0.0 |
Non-recurring items
(in million euros) |
Q1 2016 |
Q1 2017 |
Income From Operations |
81.4 |
74.3 |
As % of Net Sales |
17.3% |
15.8% |
Restructuring costs related primarily to BIC
Graphic |
- |
7.0 |
Normalized IFO |
81.4 |
81.3 |
As % of Net Sales |
17.3% |
17.3% |
Special employee bonus |
8.8 |
- |
Normalized IFO excluding the special employee
bonus |
90.2 |
81.3 |
As % of net sales |
19.2 % |
17.3% |
Income before
tax fell back to 75.0 million euros, compared to 79.4 million
euros in Q1 2016. Net finance revenue increased to a positive 0.7
million euros compared to a negative 2.0 million euros in Q1 2016.
Q1 2016 was negatively impacted by fair value adjustments to
financial assets denominated in USD when compared to December
2015.
Net income
Group Share was 49.7 million euros, a
2.7% drop as reported. The effective tax rate was 30.0%.
EPS Group
share were 1.06 euros compared to 1.08 euros in Q1 2016, i.e.,
down by 1.9%. Normalized EPS Group share increased 9.3% to 1.18
euros, compared to 1.08 euros in Q1 2016.
At the end of March 2017, the
Group's net cash position stood at 206.2 million euros.
Change in net cash position
(in million euros) |
2016 |
2017 |
Net Cash position (beginning of December) |
448.0 |
222.2 |
|
+16.1 |
+25.9 |
- Of which
operating cash flow
|
+79.9 |
+81.1 |
- Of which change
in working capital and others
|
-63.8 |
-55.2 |
|
-33.3 |
-31.5 |
|
-30.0 |
-9.4 |
|
-0.3 |
+0.2 |
|
-13.4 |
-1.2 |
Net Cash position (end of march) |
387.1 |
206.2 |
Net cash from operating activities
was +25.9 million euros, with +81.1 million euros in operating cash
flow. The negative change in working capital of 55.2 million
euros was mainly driven by the increase in inventories compared to
December 2016 to meet forecast sales activity for the rest of the
year. Net cash was also impacted by investments in CAPEX as well as
share buybacks.
Shareholders' remuneration
-
An ordinary dividend of 3.45 euros per share
will be proposed at the Annual Shareholders' Meeting on May 10,
2017.
-
9.4 million euros in share buy-backs at the end
of March 2017 (80,577 shares purchased at an average price of
116.21 euros).
Operational trends by category
Stationery Q1
2017 Net Sales decreased by 2.2% as reported and by -5.1% on a
constant currency basis.
Developed
markets
- In Europe,
the increase in Net Sales was in the low single digits, continuing
the strong momentum of 2016, with good performances in France and
in Eastern European countries.
- In North
America, where prior-period Q1 2016 comparables were very high,
Net Sales registered a double-digit decrease in a challenging U.S.
Stationery market, especially in the Mass Market channel.
Developing
Markets
In Q1 2017 the decline in Net Sales was in the high
single-digits.
- In Latin
America, we recorded a high-single digit decline after a strong
Q4 2016. However, in Brazil, the Back-To-School sell-out has been
strong with further market share gains.
- In the Middle-East and Africa, sales decreased mainly due to a
timing impact. South Africa enjoyed a very good back-to-school
season with market share gains.
- Cello Pens
Domestic Sales increased mid-single digit, thanks to our Champions
brands strategy, notably in Ball Pen with Cello
ButterflowTM.
Q1 2017
Normalized IFO margin for Stationery was
3.6% compared to 5.2% in Q1 2016 (7.3% excluding the impact of
the special employee bonus), due to higher Research and Development
and Brand Support investments.
Q1 2017
Net Sales of Lighters increased by 4.7% as
reported but decreased by 0.5% on a constant currency
basis.
Developed
markets
- Europe
delivered mid-single-digit growth in Net Sales driven notably by a
good performance in Eastern Europe, thanks to distribution
gains.
- North America registered a
low-single-digit decline when compared to a strong Q4 2016. We
gained market share in the U.S.
Developing
Markets
In Q1 2017, growth in Net Sales
was in the low single-digits.
- In Latin
America, we delivered low-single-digit growth with a strong
performance in Mexico and distribution gains in Brazil.
- In the Middle-East and Africa, Net Sales benefited from double
digit growth mainly driven by distribution gains.
Q1 2017
Normalized IFO margin for Lighters was 37.4% compared to 38.0%
in Q1 2016 (39.5% excluding the impact of the special employee
bonus), due to lower Gross Profit and higher operating
expenses.
Q1 2017 Net Sales
of Shavers decreased by 2.9% as reported and by -7.7% on a constant currency basis.
Developed
markets
- In Europe,
Net Sales growth was in the low-single-digits, driven by the
continued good performance in Eastern Europe. We benefited from the
success of products such as the BIC® 3 and BIC® Miss Soleil®
shavers as well as the Hybrid range.
- In North
America, we registered a double-digit decline in Net Sales. At
the end of March 2017, the total U.S wet shave market[5] declined by
9.2% (-7.4% for the one-piece segment), reflecting a phasing impact
on promotional activity, price adjustments from some competitors
and good performances by Private Labels. BIC market share in
one-piece was 27.6%, a 1.5-point drop compared to a 29.1% record
market share in Q1 2016. The launch of the BIC® Hybrid 5 shaver
strengthened our no. 1 position in the 5-blades disposable shaver
segment (32.8% market share in value terms, up 5.7 points compared
to Q1 2016), confirming the relevance of our "great value for
money" positioning strategy.
Developing
Markets
Net Sales were stable.
- In Latin
America, high-single growth in Net Sales was driven by a good
performance in Brazil, underpinned by the launch of the BIC® Flex 3
shaver and the BIC® Soleil® range.
- In the Middle-East and Africa, we registered a double-digit
decrease mainly due to a timing impact (i.e., orders shifted from
Q1 to Q2 2017).
Q1 2017
Normalized IFO margin for Shavers was 12.6%
compared to 10.7% in Q1 2016 (12.9% excluding the impact of the
special employee bonus). The margin change is mainly impacted by
the decline in North America Net Sales, higher operating expenses
(which includes the continued investments in R&D) which was
partially offset by lower Brand Support compared to Q1 2016.
Q1 2017 Net Sales
of Other Products decreased by 3.2% as reported and by -4.2%
on a constant currency basis.
BIC Sport registered a
mid-single-digit decrease in its Net Sales on a constant currency
basis.
Q1 2017
Normalized IFO for Other Products was
negative 3.0 million euros, compared to
negative 1.9 million euros in Q1 2016.
Full Year 2017 organic Net Sales
should grow mid-single digit. 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.
BIC Group change in net sales by
geography
(in million euros) |
Q1 2017 vs Q1 2016 |
|
Q1 2016 |
Q1 2017 |
As reported |
Constant currency basis |
Group |
|
|
|
|
Net Sales |
469.3 |
469.2 |
+0.0% |
-4.1% |
Europe |
|
|
|
|
Net
Sales |
126.6 |
129.5 |
+2.3% |
+2.4% |
North America |
|
|
|
|
Net
Sales |
188.0 |
177.5 |
-5.6% |
-9.2% |
Developing Markets |
|
|
|
|
Net Sales |
154.8 |
162.1 |
+4.7% |
-3.4% |
|
|
|
|
|
Impact of change in perimeter and
currency fluctuations on net sales
(in %) |
Q1 2016 |
Q1 2017 |
Perimeter |
- |
- |
Currencies |
-5.6 |
+4.1 |
Of which USD |
+0.9 |
+1.3 |
Of which BRL |
-2.4 |
+2.1 |
Of which ARS |
-1.6 |
-0.1 |
Of which INR |
-0.3 |
+0.2 |
Of which MXN |
-0.9 |
-0.4 |
Of which ZAR |
-0.4 |
+0.4 |
Of which Russia and Ukraine |
-0.2 |
+0.3 |
IFO and Normalized IFO by
category
(in million euros) |
Q1 2016 |
Q1 2017 |
Group |
|
|
Income From Operations |
81.4 |
74.3 |
Normalized Income From operations |
81.4 |
81.3 |
Stationery |
|
|
Income From Operations |
8.6 |
0.4 |
Normalized Income From operations |
8.6 |
5.9 |
Lighters |
|
|
Income From Operations |
62.1 |
63.9 |
Normalized Income From operations |
62.1 |
64.1 |
Shavers |
|
|
Income From Operations |
12.6 |
14.3 |
Normalized Income From operations |
12.6 |
14.4 |
Other Products |
|
|
Income From Operations |
-1.9 |
-4.3 |
Normalized Income From operations |
-1.9 |
-3.0 |
Condensed profit and loss
account
(in million euros) |
Q1 2016 |
Q1 2017 |
Change as reported |
Change on a constant currency basis |
Net sales |
469.3 |
469.2 |
+0.0% |
-4.1% |
Cost of
goods |
232.5 |
223.5 |
|
|
Gross Profit |
236.8 |
245.7 |
+3.8% |
|
Administrative & other operating expenses |
155.4 |
171.4 |
|
|
Income from operations |
81.4 |
74.3 |
-8.8% |
|
Finance
revenue/costs |
-2.0 |
0.7 |
|
|
Income before tax |
79.4 |
75.0 |
-5.5% |
|
Income
tax expense |
-23.9 |
-22.5 |
|
|
Net
Income From Continuing Operations |
55.5 |
52.5 |
|
|
Net
Income From Discontinued Operations |
-4.5 |
-2.8 |
|
|
Net Income Group Share |
51.0 |
49.7 |
-2.7% |
|
Earnings
Per Share From Continuing Operations (in euros) |
1.18 |
1.12 |
|
|
Earnings Per Share From Discontinued Operations (in
euros) |
-0.10 |
-0.06 |
|
|
Earnings per share Group share (in
euros) |
1.08 |
1.06 |
-1.9% |
|
Average number of shares outstanding net of treasury
shares |
47,107,818 |
46,685,992 |
|
|
Condensed balance sheet
(in million euros) |
Mar. 31, 2016 |
Mar. 31, 2017 |
Assets |
|
|
Non-current assets |
1,120.1 |
1,169.0 |
Current
assets |
1,416.1 |
1,314.8 |
|
312.1 |
251.8 |
Assets
Held For Sale |
|
125.8 |
TOTAL ASSETS |
2,536.2 |
2,609.6 |
Liabilities & shareholders' equity |
|
|
Shareholders'
equity |
1,847.2 |
1,857.5 |
Non-current
liabilities |
304.2 |
301.6 |
Current
liabilities |
384.8 |
415.7 |
Liabilities Held For
Sale |
|
34.8 |
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY |
2,536.2 |
2,609.6 |
Share buy-back program |
Number of shares
acquired |
Average weighted price in € |
Amount
in M€ |
February
2017 |
38,433 |
117.49 |
4.5 |
March
2017 |
42,144 |
115.05 |
4.9 |
Total |
80,577 |
116.21 |
9.4 |
Capital and voting rights, March 31, 2017
As of March 31, 2017, the total
number of issued shares of SOCIÉTÉ BIC was 47,570,106 shares,
representing:
-
69,181,960 voting rights,
-
68,319,562 voting rights excluding shares
without voting rights.
Total number of treasury shares
held at the end of March 2017: 862,398.
-
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.
*
*
*
SOCIETE BIC consolidated and statutory financial
statements as of March 31, 2017, were approved by the Board of
Directors on April 25, 2017. 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 expectations 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 section, "Risk factors" in BIC's 2016 Registration Document
filed with the French financial markets authority (AMF) on March
22, 2017.
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)
2017
AGM |
10 May
2017 |
Meeting -
BIC Headquarters |
2nd Quarter and
1st Half 2017
results |
3 August
2017 |
Conference
call |
3rd 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, CAC Mid 60 and Family Business 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] On February 7, 2017, BIC Group announced the status of the
strategic alternatives review initiated in February 2016 for BIC
Graphic. The Group mentioned that discussions regarding BIC Graphic
North America and the Asia sourcing operations were still ongoing.
Consequently, as from December 31, 2016 these activities are
accounted for and presented in accordance with IFRS 5. BIC Graphic
is thus no longer considered as a separate category or reporting
segment. The activities of BIC Graphic Europe and Developing
Markets are now accounted for and presented in Stationery and Other
products categories.
[3] Gross Profit margin excluding promotions and investments
related to consumer and business development support.
[4] Total Brand Support: consumer
and business development Support + advertising, consumer and trade
support.
[5] Source: IRI total market YTD 13 weeks ending 02-APRIL-2017
- in value terms
BIC_Q12017Results_PressRelease_26APR2017
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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