BIC: Second Quarter and First Half 2019 Results
BIC – Press ReleaseClichy
– 31 July
2019
Second Quarter and First Half 2019
Results
2019 Outlook unchanged – Transformation
Plan on Track
- H1 Net Sales at 960.2 million euros, down 1.6% on a
comparative basis1
- Back-to-School phasing had a negative impact in Europe and the
U.S.
- Maintaining or growing market share in most geographies in a
challenging trading environment
- H1 Normalized IFO margin at 15.9%, down 3.7
points
- As expected, headwinds primarily from unfavorable forex and Raw
Material costs
- Targeted Brand Support investments notably in Lighters
- BIC 2022-Invent the Future progress
- Total annualized savings now expected at 45 million euros
- Continued e-commerce Net Sales growth, up 21% year-on-year
- H1 Net Income Group Share up 26.6% at 89.6 million
euros
- H1 EPS Group Share up 28.4% at 1.99 euros
- H1 Normalized EPS Group Share down 20.3% at 2.43 euros
- Net Cash Position at the end of June 2019: -11.0
million euros
“We continued to face market headwinds in
our three categories, additionally First Half 2019 results were
impacted by negative Back-to-School phasing in Stationery and a
challenging environment in U.S. Lighters. However, we successfully
regained momentum in Shavers fueled by added-value products and
were able to maintain or grow market share in most of our
geographies. Our 2019 outlook remains unchanged.
Our transformation towards a more agile and
innovative company, initiated earlier this year, is on track. In
June, we announced the next step in our journey, focused on
creating the right structure to unlock the potential of our
businesses through a more efficient organization. While still at
the early stages, tangible results of “BIC-2022 Invent The Future”
can already be seen. In June we launched our new brand “Made for
YOU” in the U.S., an innovative range of gender-neutral refillable
shavers available on-line. Moving forward, we will continue to
seize growth opportunities and expand our geographical footprint,
as we did last week with the acquisition of Lucky Stationery
Nigeria Ltd, Nigeria’s number 1 Writing Instrument
brand.”Gonzalve Bich, Chief Executive Officer
2019 OUTLOOK
UNCHANGED
- We expect 2019 Group Net Sales to grow slightly
on a comparative
basis2:
- In a continued challenging trading environment, overall sales
performance will continue to be subject to macro-economic
uncertainties and continued competitive pressure.
- H2 performance will be driven by favorable Back-to-School
phasing, continuous growth in e-commerce, further distribution
gains, and the success of our added-value products in Stationery
and Shavers. While the U.S. market will continue to be
challenging, Lighters Net Sales should benefit from the positive
impact of the price increase in Brazil.
- Full Year 2019 Normalized Income from
Operations margin is expected to
be between 16.5% and
18%:
- While Full Year Gross Margin will continue to be impacted by
unfavorable foreign exchange trends, H2 should benefit from more
favorable Raw Material costs and positive fixed costs
absorption.
- Brand Support should be lower in H2 vs. H1, notably in
Lighters.
Key figures (in million euros) |
|
|
|
|
Q2 2019 vs. Q2 2018 |
|
Q2 2018 |
Q2 2019 |
As reported |
FX impact3(in pts) |
Change in Perimeter4(in pts) |
Argentina impact5(in pts) |
Comparativebasis |
GROUP |
|
|
|
|
|
|
|
Net Sales |
543.9 |
544.8 |
+0.2% |
+2.4 |
(1.0) |
+0.1 |
(1.3)% |
Gross Profit |
283.9 |
267.3 |
|
|
|
|
|
Normalized Income From Operations (NIFO) |
118.7 |
98.5 |
(17.1)% |
|
|
|
|
Normalized IFO margin |
21.8% |
18.1% |
|
|
|
|
|
Income From Operations (IFO) |
50.0 |
71.4 |
+42.9% |
|
|
|
|
IFO margin |
9.2% |
13.1% |
|
|
|
|
|
Net Income Group Share |
22.2 |
50.3 |
+126.3% |
|
|
|
|
Net Income Group Share excluding Cello Goodwill Impairment &
restructuring costs |
90.9 |
69.1 |
(24.0)% |
|
|
|
|
Normalized Earnings Per Share Group Share
(in euros) |
1.99 |
1.55 |
(22.1)% |
|
|
|
|
Earnings Per Share Group Share (in euros) |
0.49 |
1.11 |
+126.5% |
|
|
|
|
Stationery |
|
|
|
|
|
|
|
Net
Sales |
249.5 |
252.5 |
+1.2% |
+2.2 |
+1.2 |
+0.1 |
(2.3)% |
Normalized IFO |
37.4 |
32.3 |
|
|
|
|
|
Normalized IFO
margin |
15.0% |
12.8% |
|
|
|
|
|
IFO |
(31.3) |
21.9 |
|
|
|
|
|
IFO margin |
(12.6%) |
8.7% |
|
|
|
|
|
Lighters |
|
|
|
|
|
|
|
Net
Sales |
165.0 |
169.9 |
+3.0% |
+3.1 |
- |
- |
(0.1)% |
Normalized IFO |
63.3 |
58.7 |
|
|
|
|
|
Normalized IFO
margin |
38.4% |
34.5% |
|
|
|
|
|
IFO |
63.3 |
49.3 |
|
|
|
|
|
IFO margin |
38.4% |
29.0% |
|
|
|
|
|
Shavers |
|
|
|
|
|
|
|
Net
Sales |
113.5 |
115.5 |
+1.8% |
+2.1 |
+0.3 |
+0.1 |
(0.7)% |
Normalized IFO |
16.9 |
8.4 |
|
|
|
|
|
Normalized IFO
margin |
14.9% |
7.3% |
|
|
|
|
|
IFO |
16.9 |
1.6 |
|
|
|
|
|
IFO margin |
14.9% |
1.4% |
|
|
|
|
|
Other products |
|
|
|
|
|
|
|
Net
Sales |
15.9 |
6.9 |
(56.3)% |
(0.2) |
(51.8) |
- |
(4.3)% |
Normalized
IFO |
1.2 |
(0.9) |
|
|
|
|
|
IFO |
1.2 |
(1.3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Key figures (in million euros) |
|
|
|
|
H1 2019 vs. H1 2018 |
|
H1 2018 |
H1 2019 |
As reported |
FX impact6(in pts) |
Change in Perimeter7(in pts) |
Argentina impact8(in pts) |
Comparativebasis |
GROUP |
|
|
|
|
|
|
|
Net Sales |
959.3 |
960.2 |
+0.1% |
+2.4 |
(0.7) |
- |
(1.6)% |
Gross Profit |
507.4 |
478.5 |
|
|
|
|
|
Normalized Income From Operations (NIFO) |
188.2 |
153.1 |
-18.7% |
|
|
|
|
Normalized IFO margin |
19.6% |
15.9% |
|
|
|
|
|
Income From Operations (IFO) |
119.5 |
126.1 |
+5.4% |
|
|
|
|
IFO margin |
12.5% |
13.1% |
|
|
|
|
|
Net Income Group Share |
70.8 |
89.6 |
+26.6% |
|
|
|
|
Net Income Group Share excluding Cello Goodwill Impairment &
restructuring costs |
139.5 |
108.4 |
(22.3)% |
|
|
|
|
Normalized Earnings Per Share Group
Share(in euros) |
3.05 |
2.43 |
(20.3)% |
|
|
|
|
Earnings Per Share Group Share (in euros) |
1.55 |
1.99 |
+28.4% |
|
|
|
|
Stationery |
|
|
|
|
|
|
|
Net Sales |
401.3 |
400.8 |
(0.1)% |
+2.1 |
+1.5 |
(0.1) |
(3.6)% |
Normalized IFO |
47.0 |
34.2 |
|
|
|
|
|
Normalized IFO
margin |
11.7% |
8.5% |
|
|
|
|
|
IFO |
(21.8) |
23.7 |
|
|
|
|
|
IFO margin |
(5.4%) |
5.9% |
|
|
|
|
|
Lighters |
|
|
|
|
|
|
|
Net Sales |
317.7 |
319.7 |
+0.6% |
+3.3 |
- |
- |
(2.7)% |
Normalized IFO |
117.7 |
105.3 |
|
|
|
|
|
Normalized IFO
margin |
37.1% |
32.9% |
|
|
|
|
|
IFO |
117.7 |
95.9 |
|
|
|
|
|
IFO margin |
37.1% |
30.0% |
|
|
|
|
|
Shavers |
|
|
|
|
|
|
|
Net Sales |
210.5 |
224.5 |
+6.7% |
+2.3 |
+0.2 |
(0.1) |
+4.2% |
Normalized IFO |
24.6 |
16.1 |
|
|
|
|
|
Normalized IFO
margin |
11.7% |
7.2% |
|
|
|
|
|
IFO |
24.6 |
9.3 |
|
|
|
|
|
IFO margin |
11.7% |
4.2% |
|
|
|
|
|
Other products |
|
|
|
|
|
|
|
Net Sales |
29.8 |
15.2 |
(48.7)% |
(0.2) |
(43.6) |
- |
(4.9)% |
Normalized IFO |
(1.0) |
(2.5) |
|
|
|
|
|
IFO |
(1.0) |
(2.9) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Group operational
trends
Net
Sales
H1 2019 Net Sales totaled 960.2
million euros, up 0.1% as reported and down 1.6% on a comparative
basis9. The favorable impact of currency fluctuations (+2.4%) was
due to the strong U.S. dollar against the euro10. Europe grew
slightly by 0.2% on a comparative basis, while North America and
Developing Markets declined by 2.3% and by 2.6%, respectively.
Income From
Operations and Normalized Income From Operations
H1 2019 Gross Profit margin was
49.8%, compared to 52.9% in H1 2018, due to negative foreign
exchange impact versus last year and an increase in Raw Material
costs.
H1 2019 Normalized IFO was
153.1 million euros compared to 188.2 million euros in H1 2018,
with Normalized IFO margin of 15.9% vs. 19.6% in H1 2018. The
decline in Normalized IFO margin was driven by lower Gross Profit
margin and increase in Brand Support, mainly in Lighters, partially
offset by a decrease in OPEX.
Key components of the change in Normalized
IFO margin (in points) |
|
Q1 2019 vs. Q1 2018 |
|
Q2 2019 vs. Q2 2018 |
H1 2019 vs H1 2018 |
- Change in Gross Profit (Cost of Production)
|
|
(2.9) |
|
(3.1) |
(3.1) |
|
|
(1.4) |
|
(1.0) |
(1.2) |
|
|
+0.7 |
|
+0.4 |
+0.6 |
Total change in Normalized IFO margin |
|
(3.6) |
|
(3.7) |
(3.7) |
Non-recurring items |
Q1 |
Q2 |
H1 |
(in million euros) |
2018 |
2019 |
2018 |
2019 |
2018 |
2019 |
Income From
Operations |
69.6 |
54.6 |
50.0 |
71.4 |
119.5 |
126.1 |
As % of Net Sales |
16.7% |
13.1% |
9.2% |
13.1% |
12.5% |
13.1% |
Restructuring costs (transformation
plan) |
- |
- |
- |
27.0 |
- |
27.0 |
Cello goodwill impairment in 2018 |
- |
- |
68.7 |
- |
68.7 |
- |
Normalized IFO |
69.6 |
54.6 |
118.7 |
98.5 |
188.2 |
153.1 |
As % of Net Sales |
16.7% |
13.1% |
21.8% |
18.1% |
19.6% |
15.9% |
2018 Cello goodwill
impairment is explained by lower growth perspectives in both
domestic and export sales.
2019 Restructuring
costs amounted to 27.0 million euros and are related to the
transformation plan “BIC-2022 Invent The Future”.
Net Income and
EPS
H1 2019 Income before tax was at 124.4 million
euros, compared to 125.3 million euros in H1 2018. Net finance
revenue was negative 1.7 million euros compared to a positive 5.8
million euros in H1 2018. H1 2018 benefited from a favorable impact
of the fair value adjustments to financial assets denominated in
USD (BRL and €), while H1 2019 is negatively impacted by
hyperinflation accounting related to Argentina (IAS 29).
H1 2019 Net Income Group
Share was 89.6 million euros as reported,
compared to 70.8 million euros in H1 2018. H1 Net Income
Group share, excluding restructuring costs and Cello goodwill
impairment, was 108.4 million euros compared to 139.5
million euros last year. The effective tax rate was 28.0%.
Q2 2019 Net Income Group Share
was 50.3 million euros compared to 22.2 million euros in Q2 2018.
Q2 2019 Net Income Group Share, excluding restructuring costs and
Cello goodwill impairment, was 69.1 million euros compared to 90.9
million euros last year.
H1 2019 EPS Group share was
1.99 euros, up 28.4%, compared to 1.55 euros in H1 2018.
Normalized H1 2019 EPS Group share decreased by
20.3% to 2.43 euros, compared to 3.05 euros last year. Q2
2019 EPS Group Share was 1.11 euros up 126.5%, compared to
0.49 euros in Q2 2018. Normalized Q2 2019 EPS Group
share decreased by 22.1% to 1.55 euros, compared to 1.99
euros last year.
Net cash
position
At the end of June 2019, the Group’s net cash
position stood at (11.0) million euros.
Change in net cash position (in million
euros) |
2018 |
2019 |
Net Cash position (beginning of period -
December) |
204.9 |
161.5 |
- Net cash from operating activities
|
+83.1 |
+79.6 |
-
- Of which operating cash flow
|
+197.7 |
+164.7 |
-
- Of which change in working capital
and others
|
(114.6) |
(85.1) |
|
(51.6) |
(47.5) |
|
(157.8) |
(155.2) |
|
(23.9) |
(39.2) |
- Net cash from the exercise of stock options and the liquidity
contract
|
+1.4 |
(0.8) |
- Haco Industries Ltd acquisition
|
- |
(1.8) |
- Proceeds from the sale of BIC Graphic North America and Asian
Sourcing
|
+9.2 |
- |
|
(10.2) |
(7.6) |
Net Cash position (end of period - June) |
55.1 |
(11.0) |
Net cash from operating
activities was +79.6 million euros, including +164.7
million euros in operating cash flow. The negative 85.1 million
euros change in working capital, and others was
notably driven by accounts receivables, and inventory increased
when compared to December 2018 mainly due to preparation for
Back-to-School season reinforced by a negative phasing impact from
June to July. Net cash was also negatively impacted by investments
in CAPEX as well as the dividend payments and share buybacks.
Shareholders’
remuneration
- Ordinary dividend of 3.45 euros per share paid in June
2019.
- 39.2 million euros in share buy-backs by Société BIC at the end
of June 2019 (478,667 shares purchased at an average price of
81,83 euros).
Operational trends by
category
Stationery
Stationery H1 2019 Net Sales were flat
as reported, down 1.1% at constant currency and down 3.6% on a
comparative basis. Q2 2019 Net Sales were up 1.2%
as reported, down 0.6% at constant currency and 2.3% on a
comparative basis.
- In Europe, in a
slightly growing market (up 1.8% in value11 ), BIC gained 0.1
points in value share. H1 Net Sales were down low-single digit
impacted by a negative Back-to-School phasing in France during Q2,
with shipments to customers postponed from June to July. This more
than offset the good performance of our added-value products such
as BIC® Gelocity Quick Dry and recently launched BIC® Intensity
Medium felt pen.
- In North America, we performed in line with a
flattish U.S. Stationery market, and we were able to gain shares in
added-value segments such as Gel and Permanent Marker and
e-commerce (+0.7 points in value12). H1 Net Sales were flat,
impacted by a negative phasing of Back-to-School shipments from
June to July. We continued to see new products such as BIC®
Gelocity Ultra and BIC® BodyMark tattoo marker performing
successfully.
- H1 Net Sales in Latin
America were down mid-single-digit impacted overall by
Pimaco (our manufacturer and distributor of adhesive labels) in Q1
as well as by weak performance in Ecuador during H1. In Mexico,
despite a highly competitive environment, BIC is outperforming the
market13 notably in Ball Pen and Marking. In Brazil, our
performance was fueled by distribution gains in Ball Pen and
Graphite segments as we gained 0.8 pts in value14 in a
declining market.
- In the Middle-East and
Africa region, we continued to see the benefits from the
transfer of Haco Industries Ltd’ manufacturing facilities and
distribution activities during H1. Our change in route-to-market in
East Africa drove a double-digit increase in Net Sales in the
region.
- Cello Pens H1
Domestic Sales were down low-double-digit as we were negatively
impacted by our initiative to reduce shipments to superstockists in
India to support our change in route-to-market strategy. However,
as expected, we started to recover in Q2, with Domestic Net Sales
growing mid-single digit, fueled by the performance of our Champion
Brands such as Butterflow.
H1 2019 Normalized IFO margin for
Stationery was 8.5%, compared to 11.7% in H1 2018 mainly
driven by higher Raw Material costs, unfavorable forex trends, and
higher Brand Support investments. Q2 2019 Normalized
IFO margin was 12.8%, compared to 15.0% in Q2 2018.
Lighters
Lighters H1 2019 Net
Sales increased by 0.6% as reported, down 1.9% at constant
currency, and down by 2.7% on a comparative basis.
Second Quarter 2019 Net Sales were up by 3.0% as reported,
by 0.7% at constant currency, and flat on a
comparative basis.
- H1 Net Sales were up low-single
digit in Europe, as we progressively implemented
price adjustments across countries and distribution channels. Our
first major advertising campaign launched in France, Belgium, and
Germany to address directly our consumers showed encouraging
results and reinforced BIC’s brand image of quality and
safety.
- The U.S.
Non-Refillable Pocket lighter market declined by 5.0% in value15
year-to-date, in which BIC gained 0.2 points in market share. In
this challenging environment, following a weak Q1, North America H1
Net Sales decreased mid-single digit.
- In Latin America,
H1 Net Sales were up low-single digit fuelled by Brazil. Both
customers’ pre-buys ahead of the April price increase and further
distribution gains drove overall performance in the region.
H1 2019 Normalized IFO margin for
Lighters was 32.9%, compared to 37.1% in H1 2018, the
decrease was mainly driven by unfavorable forex trend and higher
Brand Support investments in particular with the lighter campaign
in Europe. Q2 2019 Normalized IFO margin was
34.5%, compared to 38.4% in Q2 2018.
Shavers
Shavers H1 2019 Net Sales increased by
6.7% as reported, by 5.6% at constant currency, and by
4.2% on a comparative basis. Q2
2019 Net Sales increased by 1.8% as reported, by 0.8% at constant
currency and decreased by 0.7% on a comparative
basis.
- In Europe, BIC
outperformed a flat market, gaining 0.5 points in value16, while H1
Net Sales were up a mid-single-digit. In Western Europe, the
performance was driven by both added-value products such as BIC®
Flex 3, BIC® Miss Soleil and BIC® Flex 5 and by recent
launches with BIC® Miss Soleil Sensitive. In Russia, the
continued momentum of BIC® Flex 3 Hybrid and successful launch of
BIC® Flex 5 Hybrid, coupled with further distribution gains drove
growth during H1.
- North America H1 Net Sales were up low-single
digit, propelled by both value and high-end products. In a
declining U.S. one-piece market (down by 5% in value17), BIC gained
1.9 points in value thanks to Women one-piece segment with the
introduction of commercial innovations on BIC® Silky Touch, solid
performance of our BIC® Soleil franchise (BIC® Soleil Sensitive,
BIC® Soleil Bella, BIC® Soleil Balance), in addition to the
successful launch of BIC® Soleil Click 5.
- Latin America H1
Net Sales were up mid-single digit. BIC outperformed in a
relatively flat market in Mexico, gaining 1.1 points in value18
driven by further product premiumization towards the three-blade
offering with BIC® Miss Soleil Sensitive and BIC® Flex 3.
Brazil performance was also key as BIC gained 0.3 points in value
in a declining market (down by 1.1% in value), with continued
distribution gains, in line with our product trade-up
strategy.
- H1 Net Sales were up low
double-digit in Middle-East and Africa, fueled by
the Flex range in Morocco and South Africa, and by strong
promotional activities with BIC®1 during the African Cup of Nations
in West African countries and South Africa.
H1 2019 Normalized IFO
margin for Shavers was 7.2% compared to 11.7% in H1 2018.
The sales volume increase was offset by unfavorable forex trends as
well as by higher Raw Material costs and increase in Brand Support.
Q2 2019 Normalized IFO margin was 7.3%, compared
to 14.9% in Q2 2018.
Other
Products
H1 2019 Net Sales of Other Products
decreased by 48.7% as reported and by 4.9% on
a comparative
basis. Q2 2019 Net Sales decreased by
56.3% as reported and by 4.3% on a
comparative
basis.
H1 2019 Normalized IFO
for Other Products was negative 2.5 million euros,
compared to a negative 1.0 million euros in H1 2018 including BIC
Sport for a positive 1.0 million euros. Q2 2019
Normalized IFO for Other Products was negative 0.9 million
euros, compared to a positive 1.2 million euros last year
including BIC Sport for a positive 1.1 million euros.
Update on “BIC
2022- invent the future” plan progress
On June 6th, 2019, we took the next step in our
“BIC 2022-Invent The Future” transformation plan with additional
annualized savings of 25 million euros by 2022, to be reinvested in
growth and help protect margin sustainability during the plan. A
total of 45 million euros of annualized savings by 2022 is now
expected.
During the First Half, we progressed on our
transformation plan as we rolled out several initiatives for each
of our four strategic pillars:
- Effectiveness - increase efficiency throughout
our global manufacturing operations, while maintaining product
Safety, Quality, and Affordability:
- Global Strategic Procurement Organization up and running
(Stationery, Lighters, and Shavers)
- Creation of a Global “end-to-end” Supply Chain to improve our
Stationery and Shavers Production Models
- Project for consolidation of the transactional and
administrative tasks of our Finance, Human Resources, and Customer
Services functions worldwide and creation of a dedicated Service
center called Group BIC Services in Bulgaria.
- Innovation -
enhance consumer insights capabilities and increase the pace of
innovative New Product launches.
- Key product launches such as BIC® BodyMark temporary tattoo
marker, BIC® Intensity Medium: Writing Felt Pen segment, and BIC®
Soleil® Click 5
- The new brand “Made For YOU” launched in the U.S. offering a
5-blade refillable shaver for Men and Women, in exclusive
partnership with Amazon.
- Consumer-centric
Brands - connect and engage more effectively with all
consumers:
- Various innovative marketing campaigns were performed across
all categories and geographies to drive engagement and consumer
preference
- Centralization of BIC’s Brand and Product Portfolio strategies,
Market Insights, and R&D capabilities.
- Omnichannel
Distribution - sharpen our commercial operations to become
a genuine omnichannel specialist:
- Roll-out of our new commercial organization, introducing two
global centers of expertise: “E-Retail and Digital” and “Commercial
Strategy & Analytics”
- Solid e-commerce Net Sales growth, up 21% year-on-year
primarily driven by pure players such as Amazon. In the U.S, online
sales were fueled by most of our product lines in both core and
added-value products.
- BIC.com Direct-to-Consumers website now introduced in
France.
Appendix
BIC Group Net Sales by geography(in million
euros) |
Q2 2019 vs. Q2 2018 |
|
|
H1 2019 vs. H1 2018 |
|
Q2 2018 |
Q2 2019 |
As reported |
Comparative basis |
H1 2018 |
H1 2019 |
As reported |
Comparative basis |
GROUP |
|
|
|
|
|
|
|
|
Net Sales |
543.9 |
544.8 |
+0.2 |
(1.3) |
959.3 |
960.2 |
+0.1 |
(1.6) |
Europe |
|
|
|
|
|
|
|
|
Net
Sales |
176.1 |
167.9 |
(4.6) |
(1.3) |
300.3 |
290.7 |
(3.2) |
+0.2 |
North America |
|
|
|
|
|
|
|
|
Net
Sales |
224.9 |
227.5 |
+1.1 |
(2.4) |
379.8 |
389.3 |
+2.5 |
(2.3) |
Developing Markets |
|
|
|
|
|
|
|
|
Net
Sales |
142.9 |
149.4 |
+4.6 |
+0.3 |
279.1 |
280.2 |
+0.4 |
(2.6) |
Impact of change in perimeter and currency fluctuations on
Net Sales(Excludes
argentina)(in %) |
Q2 2018 |
Q2 2019 |
H1 2018 |
H1 2019 |
Perimeter |
(0.8) |
(1.0) |
(1.2) |
(0.7) |
Currencies |
(6.1) |
+2.4 |
(7.4) |
+2.4 |
Of which USD |
(2.6) |
+2.0 |
(3.6) |
+2.4 |
Of which BRL |
(1.2) |
(0.1) |
(1.3) |
(0.3) |
Of which INR |
(0.3) |
+0.1 |
(0.4) |
- |
Of which MXN |
(0.7) |
+0.5 |
(0.5) |
+0.4 |
Of which RUB and UAH |
(0.3) |
+0.1 |
(0.3) |
- |
Condensed profit and loss account(in million
euros) |
|
Q2 2019 vs. Q2 2018 |
|
|
H1 2019 vs. H1 2018 |
|
Q2 2018 |
Q2 2019 |
As reported |
Comparative basis |
H1 2018 |
H1 2019 |
As reported |
Comparative basis |
Net
Sales |
543.9 |
544.8 |
+0.2 |
(1.3) |
959.3 |
960.2 |
+0.1 |
(1.6) |
Cost of goods |
(260.0) |
(277.5) |
|
|
(451.9) |
(481.7) |
|
|
Gross Profit |
283.9 |
267.3 |
|
|
507.4 |
478.5 |
|
|
Administrative
& other operating expenses (incl. Cello goodwill impairment in
2018) |
(233.9) |
(195.9) |
|
|
(387.9) |
(352.4) |
|
|
Income from operations |
50.0 |
71.4 |
|
|
119.5 |
126.1 |
|
|
Finance
revenue/costs |
7.8 |
(2.4) |
|
|
5.8 |
(1.7) |
|
|
Income before tax |
57.8 |
69.0 |
|
|
125.3 |
124.4 |
|
|
Income tax
expense |
(35.5) |
(18.8) |
|
|
(54.5) |
(34.8) |
|
|
NET INCOME GROUP SHARE |
22.2 |
50.3 |
|
|
70.8 |
89.6 |
|
|
Earnings per share Group share (in euros) |
0.49 |
1.11 |
|
|
1.55 |
1.99 |
|
|
Average number of shares outstanding (net of treasury shares) |
45,755,483 |
45,120,558 |
|
|
45,755,483 |
45,120,558 |
|
|
Condensed balance sheet (in million euros) |
June 30, 2018 |
January 1, 201919 |
June 30, 2019 |
Assets |
|
|
|
Property, plant & equipment |
676.9 |
699.8 |
698.9 |
Investment properties |
1.8 |
1.7 |
1.7 |
Goodwill and intangible assets |
278.6 |
286.6 |
288.6 |
Other non-current assets |
150.7 |
169.9 |
170.8 |
Non-current assets |
1,108.0 |
1,158.0 |
1,160.0 |
Inventories |
470.2 |
449.2 |
494.8 |
Trade and other receivables |
574.0 |
534.7 |
639.6 |
Other current assets |
30.4 |
49.5 |
51.2 |
Other current financial assets and
derivative instruments |
34.4 |
18.1 |
12.4 |
Cash and cash equivalents |
170.5 |
157.5 |
182.3 |
Current assets |
1,279.5 |
1,209.0 |
1,380.3 |
TOTAL ASSETS |
2,387.5 |
2,367.0 |
2,540.3 |
Liabilities & shareholders’
equity |
|
|
|
Shareholders’
equity |
1.569.6 |
1,624.7 |
1,528.4 |
Non-current borrowings |
35.3 |
32.0 |
32.3 |
Other non-current liabilities |
216.3 |
263.5 |
282.9 |
Non-current
liabilities |
251.6 |
295.5 |
315.2 |
Trade and other payables |
130.7 |
137.7 |
151.0 |
Current borrowings |
154.0 |
22.6 |
213.7 |
Other current liabilities |
281.6 |
286.4 |
331.9 |
Current liabilities |
566.3 |
446.7 |
696.7 |
TOTAL LIABILITIES & SHAREHOLDERS’ EQUITY |
2,387.5 |
2,367.0 |
2,540.3 |
Cash flow statement (in million euros) |
H1 2018 |
H1 2019 |
Group
Net income |
70.8 |
89.6 |
Argentina hyperinflationary accounting
(IAS29) |
- |
1.5 |
Amortization and provisions |
131.4 |
102.5 |
(Gain)/Loss from disposal of fixed
assets |
- |
0.2 |
Others |
(4.5) |
(29.1) |
CASH FLOW FROM OPERATIONS |
197.7 |
164.7 |
(Increase) / decrease in net current
working capital |
(134.4) |
(106.3) |
Others |
19.8 |
21.2 |
NET CASH FROM OPERATING ACTIVITIES (A) |
83.1 |
79.6 |
Net capital expenditure |
(51.0) |
(47.5) |
(Purchase)/Sale of other current
financial assets |
5.0 |
3.6 |
Haco Industries Ltd acquisition |
- |
(1.8) |
Other
Investments |
0.1 |
0.1 |
NET CASH FROM INVESTING ACTIVITIES (B) |
(45.9) |
(45.6) |
Dividends paid |
(157.8) |
(155.2) |
Borrowings/(Repayments)/(loans) |
100.9 |
103.8 |
Share buy-back program net of
stock-options exercised |
(22.5) |
(40.0) |
Others |
(7.9) |
(9.4) |
NET CASH FROM FINANCING ACTIVITIES (C) |
(87.3) |
(100.8) |
NET INCREASE/ (DECREASE) IN CASH AND CASH
EQUIVALENTS NET OF BANK OVERDRAFTS
(A+B+C) |
(50.1) |
(66.7) |
OPENING CASH AND CASH
EQUIVALENTS NET OF BANK OVERDRAFTS |
187.0 |
149.8 |
Net increase/decrease in cash and cash
equivalents net of bank overdrafts (A+B+C) |
(50.1) |
(66.7) |
Exchange difference |
(3.2) |
1.6 |
CLOSING CASH AND CASH EQUIVALENTS NET OF BANK
OVERDRAFTS |
133.7 |
84.6 |
Share buy-back program – Societe BIC |
Number of shares acquired |
Average weighted price in € |
Amount in M€ |
February 2019 |
272,388 |
83.24 |
22.7 |
March 2019 |
126,408 |
82.41 |
10.4 |
April 2019 |
44,871 |
76.63 |
3.4 |
May 2019 |
35,000 |
75.42 |
2.6 |
June 2019 |
- |
- |
- |
Total |
478,667 |
81.83 |
39.2 |
Reconciliation with
Alternative Performance Measures
Normalized IFO reconciliation |
|
|
(in million euros) |
H1 2018 |
FY 2018 |
H1 2019 |
Income From
Operations |
119.5 |
258.8 |
126.1 |
Cello and Pimaco goodwill impairment |
+68.7 |
+74.2 |
- |
Restructuring costs (Stationery and
Lighters manufacturing reorganization, transformation plan, Haco
Industries acquisition related costs, transformation plan) |
- |
+15.4 |
+27.0 |
BIC Sport Divestiture |
- |
+4.9 |
- |
Argentina hyperinflationary accounting
(IAS29) |
- |
(0.9) |
- |
Normalized IFO |
188.2 |
352.4 |
153.1 |
Normalized EPS reconciliation |
|
|
|
(in euros) |
|
H1 2018 |
FY 2018 |
H1 2019 |
EPS |
|
1.55 |
3.80 |
1.99 |
Cello and Pimaco goodwill
impairment |
|
+1.50 |
+1.62 |
- |
Restructuring costs
(Stationery and Lighters manufacturing reorganization,
transformation plan, Haco Industries acquisition related costs,
transformation plan) |
|
- |
+0.23 |
+0.41 |
BIC Sport Divestiture |
|
- |
+0.10 |
- |
Argentina hyperinflationary accounting
(IAS29) |
|
- |
+0.12 |
+0.03 |
Normalized EPS |
|
3.05 |
5.87 |
2.43 |
Net cash reconciliation (in million euros –
rounded figures) |
December 31, 2018 |
June 30, 2019 |
Cash and cash equivalents (1) |
+157.5 |
+182.3 |
Other current financial assets (2)20 |
+12.8 |
+9.3 |
Current borrowings (3)21 |
(8.9) |
(199.8) |
Non-current borrowings (4) |
- |
(2.8) |
NET CASH POSITION (1) + (2) - (3) - (4) |
161.5 |
(11.0) |
Capital and voting rights,
June 30, 2019
As of June 30, 2019, the total number of issued
shares of SOCIÉTÉ BIC was 46,010,907 shares, representing:
- 67,688,129 voting rights,
- 66,668,443 voting rights excluding shares without voting
rights.
Total number of treasury shares held at the end
of June 2019: 1,019,686.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 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. Organic change excludes Argentina Net
Sales for both 2018 and 2019.
- Gross profit is the margin that the Group
realizes after deducting its manufacturing costs.
- Normalized IFO: normalized means excluding
non-recurring items.
- Normalized IFO margin: Normalized IFO as a
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 (except financial liabilities following IFRS 16
implementation).
SOCIETE BIC consolidated financial statements as
of June 30, 2019, were approved by the Board of Directors on July
30, 2019. A presentation related to this announcement is also
available on the BIC website (at 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, “Risks” in BIC’s
2018 Registration Document filed with the French financial markets
authority (AMF) on March 20, 2019.
Contacts
Sophie Palliez-Capian – VP, Corporate Stakeholder
Engagement - sophie.palliez@bicworld.com |
Investor Relations Contact: +33 1 45 19 52 00 |
Press Contacts |
Michèle Ventura michele.ventura@bicworld.com |
Albane
de La Tour d’Artaise Albane.DeLaTourD'Artaise@bicworld.com |
|
Laurence Heilbronn : +33 6 89 87 61 37 lheilbronn@image7.fr |
For more information, please consult the corporate website:
www.bicworld.com
2019 Agenda - All dates
to be confirmed
Third Quarter 2019 results |
23 October 2019 |
Webcast |
Full Year 2019 results |
12 February 2020 |
Meeting and Webcast |
First Quarter 2020 results |
23 April 2020 |
Webcast |
2020 AGM |
20 May 2020 |
Meeting |
About BIC
BIC is a world leader in Stationery, Lighters
and Shavers. For more than 70 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 and is a trademark registered
worldwide for identifying BIC products which are sold in more than
160 countries around the world. In 2018, BIC Net Sales were 1,949.8
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 A list and
CDP “Supplier Engagement rating Leader board”, Euronext Vigeo –
Eurozone 120, Euronext Vigeo – Europe 120, FTSE4Good indexes,
Ethibel Pioneer and Ethibel Excellence Investment Registers,
Ethibel Sustainability Index (ESI) Excellence Europe, Stoxx Global
ESG Leaders Index.
1 See glossary page 13
2 For 2019 Net Sales, on a comparative basis will exclude Full
Year 2018 BIC Sport’s Net Sales and 2019 Haco Industries Ltd
incremental Net Sales.
3 Forex impact excluding Argentinian Peso (ARS)
4 Haco Industries Ltd and BIC Sport
5 See glossary page 13
6 Forex impact excluding Argentinian Peso (ARS)
7 Haco Industries Ltd and BIC Sport
8 See glossary page 13
9 excluding Argentina
10 this excludes the Argentinian peso.
11 GFK YTD May 2019 in value
12 NPD YTD June 2019 in value
13 Nielsen YTD June 2019 (Home panel - 25% coverage), in
value
14 Nielsen YTD June 2019 (Home panel - 10% coverage), in
value
15 IRI YTD Period ending 30-JUN-19 in value
16 Nielsen YTD April 2019 – Total disposable Market – EU 5
average: France, Italy, Poland, UK and Russia – in value
17 IRI YTD Period ending 30-JUN-2019 in value
18 Nielsen – Shaver Disposable – YTD May 2019 in value
19 IFRIC 23 first time adoption
20 In the balance sheet at June 30, 2019 and at December 31,
2018, the line “Other current financial assets and derivative
instruments” also includes respectively 3.1 million euros and 5.3
million euros worth of derivative instruments.
21 Excluding financial liabilities following IFRS16
implementation
- BIC_S12019Results_PressRelease
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