Correction: BIC: FOURTH QUARTER AND FULL YEAR 2019 RESULTS
BIC Group – Press
ReleaseClichy – 12 February
2020
This is a correction of the announcement from
07:15 on 12.02.2020 CET. Reason for the correction: work accidents
for full year 2019 is 74 reportable accidents. The number of
accidents decreased by 12% in 2019.FOURTH QUARTER AND FULL
YEAR 2019 RESULTS
- FY 2019 Net Sales: 1,949.4 million euros
- Down 1.9% on a comparative basis
- FY 2019 Normalized Income From Operation: 331.8 million
euros
- Normalized Income From Operations margin:
17.0%
- FY 2019 Net Income Group
Share: 176.1 million euros
- FY 2019 EPS Group share: 3.91 euros
- FY 2019 Normalized EPS Group share: 5.47
euros
- FY 2019 Net Cash Position: 146.9 million
euros
- Proposed Dividend Per Share1 of 3.45
euros
“In a continued volatile and challenging trading
environment, our 2019 performance was softer than initially
expected. Nevertheless, in spite of market headwinds in our three
categories, we grew or maintained market share in most geographies,
as our teams remained focused on operational execution, and we
seized growth opportunities in promising markets with selected
acquisitions in Africa.Our “BIC 2022 - Invent the Future”
transformation plan that leads us towards a more efficient, agile,
and consumer-centric organization, is on track. I am convinced
that, combined with our solid business foundations, this plan will
enable BIC to deliver long-term profitable growth and create
meaningful value for all our stakeholders.”
Gonzalve Bich, Chief Executive
Officer
2020 OUTLOOK2
We expect FY 2020 Organic Net Sales growth to be between
-1.0% to +1.0% compared to FY 2019, with a year-on-year growth
being weighted towards the second half.
·In flat to
declining markets in our main geographies, notably in U.S.
lighters, headwinds include macro-economic uncertainties, and
competitive pressure. Globally, Net Sales will be driven by new
product launches and line extensions, enhanced distribution and
route-to-market, as well as relentless execution from our
teams. Full
Year 2020 Normalized Income from Operations margin is expected to
be between 16.0% and 17.0% of Net Sales, with a continued focus on
cash generation.
·The
stabilization of Gross Profit Margin and the increase in Brand
Support efficiency will be more than offset by the costs related to
the implementation of the new organization and the impact of higher
incentive plan costs versus 2019.
Q4 & FY 2019 KEY GROUP
FINANCIAL FIGURES
in million euros |
Q4 2018 |
Q4 2019 |
FY 2018 |
FY 2019 |
Group Net Sales |
511.0 |
501.2 |
1,949.8 |
1,949.4 |
Change as reported |
+2.7% |
(1.9) % |
(4.5)% |
0.0% |
Change on a comparative basis |
+5.4% |
(3.8) % |
+1.5% |
(1.9) % |
Normalized Income From Operations3 |
87.1 |
90.7 |
352.4 |
331.8 |
Normalized IFO margin |
17.0% |
18.1% |
18.1% |
17.0% |
Net Income Group Share |
49.8 |
23.5 |
173.4 |
176.1 |
Normalized4 Net Income Group share |
75.6 |
69.4 |
267.8 |
246.7 |
EPS (in euros) |
1.09 |
0.52 |
3.80 |
3.91 |
Normalized EPS (in euros) |
1.66 |
1.54 |
5.87 |
5.47 |
Net Cash Position |
161.5 |
146.9 |
161.5 |
146.9 |
FY 2019 KEY GROUP NON-
FINANCIAL FIGURES
|
FY 2018 |
FY 2019 |
Acting against Climate Change |
CO2 Emissions (Scope 1 & 2) |
98,283 in tons of CO2 equivalent |
97,711 in tons of CO2 equivalent |
% of Renewable Electricity (Writing the Future, Together
Commitment: 80% by 2025) |
68% |
76% |
Safe Work Environment |
Work accidents (Writing the Future, Together Commitment: 0 accident
by 2025) |
84 reportable accidents5 |
74 reportable accidents555 sites
among which ten factories reached a
zero-accident level |
Improving Lives through Education |
Improved Children Learning Conditions (Writing the Future, Together
Commitment: 250 million children between 2018 and 2025,
globally) |
30 million |
61 million (cumulative) |
GROUP OPERATIONAL
TRENDS
NET SALES BY GEOGRAPHY
in million euros |
Q4 2018 |
Q4 2019 |
As reported |
On a Comparative basis |
FY 2018 |
FY 2019 |
As reported |
On a Comparative basis |
Group |
511.0 |
501.2 |
(1.9)% |
(3.8)% |
1,949.8 |
1,949.4 |
0.0% |
(1.9)% |
Europe |
121.4 |
124.6 |
+2.7% |
+3.2% |
559.7 |
558.9 |
(0.1)% |
+2.3% |
North America |
189.4 |
178.3 |
(5.9)% |
(8.3)% |
765.6 |
764.4 |
(0.2)% |
(4.1)% |
Developing Markets |
200.2 |
198.3 |
(1.0)% |
(3.8)% |
624.5 |
626.1 |
+0.3% |
(3.1)% |
The favorable impact of currency fluctuations of
+2.3% was mainly due to the strong U.S. dollar against the
euro6.
INCOME FROM OPERATIONS AND NORMALIZED INCOME FROM
OPERATIONS
in million euros |
Q4 2018 |
Q4 2019 |
FY 2018 |
FY 2019 |
Net Sales |
511.0 |
501.2 |
1,949.8 |
1,949.4 |
Gross Profit |
260.1 |
248.4 |
1,014.3 |
977.3 |
Gross Profit margin |
50.9% |
49.6% |
52.0% |
50.1% |
Income From Operations |
62.5 |
43.6 |
258.8 |
252.7 |
IFO margin |
12.2% |
8.7% |
13.3% |
13.0% |
Non-recurring items |
24.6 |
47.1 |
93.6 |
79.1 |
Normalized IFO |
87.1 |
90.7 |
352.4 |
331.8 |
Normalized IFO margin |
17.0% |
18.1% |
18.1% |
17.0% |
FY 2019 non-recurring items
include notably 44.7 million euros restructuring costs and 44.3
million euros Goodwill and Trademark Impairment on Cello (see
details in Appendix).
FY 2019 Normalized IFO decline
is due to lower Gross Profit margin and increase in Brand Support,
mainly in Lighters, partially offset by a decrease in OPEX and
other expenses. FY 2019 Normalized IFO was positively impacted by
lower incentive plan costs versus 2018 (+ 0.6 points positive
impact). Q4 Normalized IFO was positively impacted
by lower incentive plan costs versus 2018 (+ 1.8 points positive
impact).
Key normalized components of the change in Normalized IFO
margin7 (in points) |
Q4 2019 vs. Q4 2018 |
FY 2019 vs. FY 2018 |
·Change in Gross Profit (Cost of Production) |
(1.4) |
(1.9) |
·Brand Support |
(0.1) |
(0.4) |
·OPEX and other expenses |
+2.6 |
+1.2 |
Total change in Normalized IFO margin |
+1.1 |
(1.1) |
NET INCOME AND EPS
in million euros |
Q4 2018 |
Q4 2019 |
FY 2018 |
FY 2019 |
IFO |
62.5 |
43.6 |
258.8 |
252.7 |
Finance revenue/costs |
(2.3) |
(4.1) |
2.8 |
(1.3) |
Income before Tax |
60.2 |
39.5 |
261.6 |
251.4 |
Net Income Group share |
49.8 |
23.5 |
173.4 |
176.1 |
Normalized Net Income Group Share8 |
75.6 |
69.4 |
267.8 |
246.7 |
Normalized EPS Group Share (in euros) |
1.66 |
1.54 |
5.87 |
5.47 |
EPS Group Share (in euros) |
1.09 |
0.52 |
3.80 |
3.91 |
FY 2019 finance revenue decrease is explained
by 2018 higher favorable impact of the fair value adjustments to
financial assets denominated in USD (BRL and EUR).
The 2019 effective tax rate was
30.0% compared to 33.7% in 2018 (27.3% excluding Cello goodwill and
trademark impairment and related tax impact in 2019 and 26.3%
excluding Cello and Pimaco goodwill impairment impact in 2018).
NET CASH POSITION
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 |
+303.9 |
+318.2 |
·Of which operating cash flow |
+394.6 |
+334.5 |
·Of which change in working capital and others |
(90.7) |
(16.3) |
CAPEX |
(123.8) |
(113.6) |
Dividend payment |
(157.8) |
(155.2) |
Share buyback program |
(54.1) |
(39.2) |
Net cash from the exercise of stock options and the liquidity
contract |
+4.2 |
(0.8) |
Haco Industries Ltd acquisition |
(6.3) |
(2.4) |
Lucky Stationery Nigeria Ltd acquisition |
- |
(13.8) |
Proceeds from the sale of BIC Graphic North America and Asian
Sourcing |
+9.2 |
- |
Proceeds from disposal of BIC Sport |
+2.7 |
- |
Other items |
(21.4) |
(7.8) |
Net Cash position (end of period – December) |
161.5 |
146.9 |
At the end of December 2019,
the Group’s Net Cash position stood at 146.9 million euros. Net
Cash was negatively impacted by CAPEX, as well as the dividend
payments, share buybacks, and the acquisition of Lucky Stationery
in Nigeria.
SHAREHOLDERS’ REMUNERATION
In 2019, Shareholders’ Remuneration totaled
194.4 million euros:
- 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 December 2019 (478,667 shares purchased at an average price of
81.83 euros).
OPERATIONAL TRENDS BY
CATEGORY
STATIONERY
in million euros |
Q4 2018 |
Q4 2019 |
FY 2018 |
FY 2019 |
Volumes sold (in billion units) |
- |
- |
7.3 |
6.9 |
Net Sales |
170.4 |
169.3 |
771.9 |
774.4 |
Change as reported vs. prior year |
(3.3)% |
(0.6)% |
(4.0)% |
+0.3% |
Change on a comparative basis vs. prior year |
+0.6% |
(4.8)% |
+1.7% |
(3.4)% |
Normalized Income From Operations |
5.4 |
(0.9) |
62.8 |
47.8 |
Normalized IFO margin |
3.2% |
(0.5)% |
8.1% |
6.2% |
Income From Operations |
(2.6) |
(43.1) |
(14.1) |
(6.7) |
Income From Operations Margin |
(1.5)% |
(25.4)% |
(1.8)% |
(0.9)% |
In Stationery, while markets
continued to be challenging, we pursued growth in e-commerce and
invested in innovative products. While Europe grew low-single digit
and North America was flat, 2019 performance was negatively
impacted by the decrease in Cello Net Sales in India.
Full Year 2019 Stationery Normalized IFO
margin was 6.2% compared to 8.1% in 2018 due to higher Raw
Material costs and unfavorable forex. Q4 2019 Stationery
Normalized IFO margin was -0.5% versus 3.2% in 2018
impacted by lower sales, higher manufacturing costs, and higher
promotional activities.
By Geography |
Market Trends (in value) |
BIC FY 2019 Net Sales evolution (on a
comparative basis) |
Europe |
Flat YTD DEC 20199 |
Increased low single-digit |
North America |
+0.5% YTD DEC 201910 |
flat |
Developing Markets |
+10% YTD DEC 2019 (Latin America)11 |
Decreased by approx. 10% |
- We outperformed overall flat markets in
Europe, growing shares in key countries such as
France and the U.K9. Our added-value products, including
BIC®Gelocity Full Grip and BIC® Intensity Medium felt pen performed
well. E-commerce business grew 14% versus the prior year.
- North America’s performance was impacted
by a soft sell out during the Back-to-School season. However, we
continued to see new products, such as BIC® Gelocity Ultra and BIC®
BodyMark tattoo marker, perform well. Year to date, BIC
outperformed the Gel, Mechanical Pencil, and Correction Segments
and continued to grow in e-commerce, reaching 13.0% market share in
value (+0.8 points)10.
- In Latin America, Net Sales decreased by
approx. 10%. Performance at the beginning of the year was
negatively impacted by Pimaco (our manufacturer and distributor of
adhesive labels) as well as by weak execution in Ecuador during H1.
During the 2019 Back-to-School season, while we outperformed a
declining market in Brazil, we lost 2.5 points in value11 in Mexico
as a result of the poor performance of Ball Pen and Graphite
segments in a highly competitive environment.
- In the Middle-East and Africa region,
performance was driven by a successful change in route-to-market in
East Africa, thanks to the transfer of Haco Industries Ltd’
manufacturing and distribution activities, which led to a
double-digit increase in Net Sales in the region. Solid 2019
Back-to-School also drove the performance in South-Africa. In
Nigeria, Lucky Stationery acquisition was finalized on 23 October
2019.
- In India, Cello Pens Domestic
Sales decreased double-digit on a comparative basis in a
challenging market environment impacted by the high level of
superstockists’ inventories, as well as our on-going strategy of
portfolio streamlining. However, we continued to see improved
performance of our Champion Brands such as Butterflow.
LIGHTERS
in million euros |
Q4 2018 |
Q4 2019 |
FY 2018 |
FY 2019 |
Volumes sold (in billion units) |
- |
- |
1.6 |
1.5 |
Net Sales |
204.3 |
197.4 |
685.8 |
679.0 |
Change as reported vs. prior year |
+7.7% |
(3.4)% |
(3.1)% |
(1.0)% |
Change on a comparative basis vs. prior year |
+9.0% |
(4.9)% |
+2.4% |
(3.7)% |
Normalized Income From Operations |
70.9 |
72.5 |
247.0 |
232.1 |
Normalized IFO margin |
34.7% |
36.7% |
36.0% |
34.2% |
Income From Operations |
66.5 |
69.2 |
242.5 |
217.7 |
Income From Operations Margin |
32.5% |
35.1% |
35.4% |
32.1% |
The Lighter category was challenged by the
declining US Pocket Lighters market affecting sell-in performance.
This was partially offset by a good performance in Europe and Latin
America.
Full Year 2019 Normalized IFO
margin for Lighters was 34.2% compared to 36.0% in 2018,
and is explained by unfavorable forex and higher Brand Support
investments.
By Geography |
Market Trends (in value) |
BIC FY 2019 Net Sales evolution (on a
comparative basis) |
Europe |
- |
Increased low single-digit |
North America |
-5.9% YTD DEC 201912 |
Decreased high single-digit |
Developing Markets |
- |
Increased low single-digit |
• In Europe, a price adjustment was
implemented across the region. Our first advertising campaign to
address consumers directly was launched in France, Belgium,
Germany, and Italy to reinforce BIC’s brand image of quality and
safety.
- In North America, Net Sales were heavily
impacted by the decline of the U.S. pocket Lighter market. For the
full year, the market was down 8.2% in volume and down 5.9% in
value12, nonetheless we maintained market share in both volume and
value. The U.S. Utility market continued to grow, and BIC was up
12.5% in value12, outperforming the market, thanks to additional
distribution in the Modern Mass channel.
- Latin America posted mid-single-digit growth
driven by Brazil with the price increase implementation in June as
well as higher volumes in the traditional channel. In Mexico, sales
were boosted by distribution gains in the convenience channel.
SHAVERS
in million euros |
Q4 2018 |
Q4 2019 |
FY 2018 |
FY 2019 |
Volumes sold (in billion units) |
- |
- |
2.5 |
2.6 |
Net Sales |
123.1 |
123.5 |
438.0 |
463.0 |
Change as reported vs. prior year |
+5.7% |
+0.4% |
(4.7)% |
+5.7% |
Change on a comparative basis vs. prior year |
+9.2% |
(1.6)% |
+1.7% |
+3.2% |
Normalized Income From Operations |
10.3 |
19.3 |
45.4 |
56.2 |
Normalized IFO margin |
8.4% |
15.6% |
10.4% |
12.1% |
Income From Operations |
8.8 |
18.3 |
43.7 |
47.2 |
Income From Operations Margin |
7.1% |
14.8% |
10.0% |
10.2% |
In Shavers, in spite of adverse
market trends, the performance was robust as we gained market share
in most of our markets and grew Net Sales mid-single digit
throughout our main geographies, fueled by the success of both
added value and new products.
Full Year 2019 Normalized IFO
margin for Shavers was 12.1% compared to 10.4% in 2018.
The increase was driven by Net Sales growth, which more than offset
unfavorable forex.
By Geography |
Market Trends (in value) |
BIC FY 2019 Net Sales evolution (on a
comparative basis) |
Europe |
-0.7% YTD DEC 201913 |
Increased mid-single-digit |
North America |
-4.2% YTD DEC 201914 |
Increased low single-digit |
Developing Markets |
+4.8% YTD DEC 2019 (Latin America) 15 |
Increased mid-single-digit |
- In Europe, while the overall market slightly
declined, Western Europe's performance was fueled by both
added-value products, and recent launches with BIC® Miss Soleil
Sensitive. In Russia, we outperformed a flat market, gaining 0.8
points in share value13 driven by further distribution gains, and
the on-going success of the BIC® Flex Hybrid product range.
- In North America, the one-piece market
continues to be highly competitive and declined by 4.2% in value14.
We gained 1.9 points to reach 28.1% in share value, fueled by the
outperformance in the one-piece female segment, driven by the
expanded distribution of BIC® Silky Touch, and the on-going success
of the BIC® Soleil franchise. In Men, we outperformed the category
with BIC®Flex 5 Hybrid as the primary growth driver thanks to
successful in-store promotions. The “Made For YOU” brand was
launched in the U.S., offering a 5-blade refillable shaver for Men
and Women, in partnership with Amazon.
- Latin America performance was driven by
Mexico, where in a highly competitive market, we gained 1.0 points
in share value15, thanks to distribution gains and robust
performance of premium products and new launches with BIC® Flex 3
Hybrid and BIC® Soleil Click 5. In Brazil, we outperformed the
market, boosted by the performance of our three-blade offering, and
reached a historical record in market share with 28.2% in volume
and 21.9% in value share15.
- In the Middle-East and Africa, Net Sales were
up low single-digit driven by good performance in North Africa, and
by strong promotional activities with BIC®1 during the African Cup
of Nations in West African countries and South Africa.
OTHER PRODUCTS
in million euros |
Q4 2018 |
Q4 2019 |
FY 2018 |
FY 2019 |
Other Products Net Sales |
13.2 |
10.9 |
54.0 |
33.1 |
Change as reported |
(12.3)% |
(16.9)% |
(23.3)% |
(38.7)% |
Change on a comparative basis |
(11.8)% |
+4.5% |
(11.6)% |
+1.2% |
Normalized Income From Operations |
+0.4 |
(0.2) |
(2.8) |
(4.3) |
Of which BIC Sport |
(1.0) |
- |
(0.7) |
- |
Income From Operations |
(10.2) |
(0.9) |
(13.4) |
(5.5) |
BIC 2022- INVENT THE FUTURE
TRANSFORMATION PLAN PROGRESS
During 2019, we progressed on the execution of
our transformation plan and put in place several initiatives to
support our four strategic pillars and achieve our strategic
operational targets for 2022.
·EFFECTIVENESS – target: achieve
45 million euros annual savings
In 2019 we
started delivering savings through a set of efficiency programs,
including the establishment of a new centralized procurement
organization and the implementation of End-to-End
planning and integrated Sales & Operating Planning
processes across the Group that will enable the optimization of
SKUs, logistics and working
capital. ·INNOVATION
– target: increase the number of new patent submissions by 20% per
year
The Global Market and Consumer Insights
Team is up and running and launched several
consumer-centric initiatives, such as the Next BIC Thing platform
presented during the 2019 CES in Las Vegas. We merged the
Stationery and Shavers Design and Engineering teams to create a
Global Development Center to foster cross-collaboration and
accelerate innovation pipeline and time-to-market.
Key products such as BIC®
BodyMark temporary tattoo marker, and “Made For YOU” (new
direct-to-consumer on-line Shaver brand in the U.S.) were launched
in 2019.
·CONSUMER-CENTRIC BRANDS
– target: engage directly with 20% of our
consumers
To connect and engage more effectively with all
consumers, a Global Customer Relationship Management
(CRM) platform was implemented, with over 1 million
consumers already engaged in accelerating growth.
·OMNICHANNEL DISTRIBUTION –
target: reach 10% of Net Sales in e-commerce
A new e-commerce leadership and team are on
board, and progress was made in e-commerce across all regions,
categories and channels, with
+13% E-commerce Net Sales
growth in 2019.
WRITING
THE FUTURE, TOGETHER 2025 SUSTAINABLE DEVELOPMENT PLAN
UPDATE
We defined five Sustainable Development
commitments in 2017, which will enable BIC to create value over the
long term for the benefit of all of its stakeholders.
·#1 FOSTERING SUSTAINABLE INNOVATION IN
BIC® PRODUCTS – Target: by 2025, the environmental
and/or societal footprint of BIC® products will be
improved.
In 2019, 90% of the BIC product portfolio was
evaluated. 6% of the plastic used in Stationery product
manufacturing were recycled plastics.
·#2 ACTING AGAINST CLIMATE
CHANGE – Target: by 2025, BIC will use 80%
renewable electricity.
In 2019, BIC reached 76% renewable electricity
across the Group, compared to 68% in 2018.
·#3 COMMITTING TO A SAFE WORK
ENVIRONMENT - Target: by 2025, BIC aims for zero
accidents across all operations.
The number of accidents decreased by 12% in 2019
and more than 46,000 hours of training on health and safety
delivered.
·#4 PROACTIVELY INVOLVING
SUPPLIERS - Target: by 2025, BIC will work
responsibly with its strategic suppliers to ensure the most secure,
innovative, and efficient sourcing.
In 2019, 292 strategic suppliers and 95 risks
were identified, and 43% of contract manufacturers
audited.
·#5 IMPROVING LIVES THROUGH
EDUCATION - Target: by 2025, BIC will improve
learning conditions for 250 million children
globally.
The learning conditions for more than 61 million
children were improved since 2018 through direct actions with
children or actions with teachers.
CAPEX -
ACQUISITIONS – DISPOSALS - MISCELLANEOUS
INAUGURATION OF BIC EAST AFRICA
FACILITY
On March 11, BIC officially inaugurated its East
Africa Facility in Kasarani, Nairobi (Kenya). This new venture
comes as BIC transferred its manufacturing in Kenya and
distribution in the East African region from HACO Industries Kenya
Ltd earlier this year. After forty years of presence through a
local distributor, BIC established its subsidiary to implement its
proximity strategy and expand its brand presence.
ACQUISITION OF LUCKY STATIONERY IN
NIGERIA
On October 23, 2019, BIC announced the completed
acquisition of Lucky Stationery in Nigeria (LSNL). Nigeria #1
Writing Instrument manufacturer. LSNL’ s brand, product portfolio
and distribution network will strengthen BIC’s position in Nigeria,
the largest economy and also number one in the Pens market in the
region.
BIC WINS RESOLUTION WITH ARROW LIGHTER,
INC
In January 2020, BIC defeated Arrow Lighter,
Inc. (Arrow) in BIC’s lawsuit filed with the International Trade
Commission (ITC). Arrow has agreed to no longer sell certain
low-quality, knockoff lighter models anywhere in the world. The
lighters, branded “MK” and produced by Arrow, imitate the iconic
shape and design of BIC’s lighters without upholding BIC’s
stringent safety standards.
GOVERNANCE
On December 10, 2019, following the resignation
of François BICH, and the recommendation of its Nomination,
Governance and CSR Committee, the Board of Directors of SOCIETE
BIC, co-opted Timothée Bich to serve as director until the end of
François BICH’s mandate in May 2020. The Board also decided
to submit to the 20 May 2020 General Shareholders' Meeting the
appointment of Jake Schwartz, Managing Director and co-founder of
General Assembly, as Independent Director.
APPENDIX
Our 2020 outlook is based on the following
assumptions16:
- Currency: 2020 USD-Euro hedging rate:
1.1445
- Market Trends:
- Europe: Flat to slight decline for the three categories, in
value
- North America:
- Flat to slight increase in U.S. Stationery market, in
value
- -4.0% to -5.0% decrease in total US pocket Lighters market, in
value
- -4.0% to -5.0% decrease in total US one-piece Shavers market,
in value
- Latin America: low-single digit increase for the three
categories, in value
- NIFO drivers:
- Stable Gross Profit Margin with negative fixed cost absorption
offset by a decrease in Raw Materials costs and positive price
impacts
- Increase in Brand Support investments efficiency
- Higher OPEX and other expenses notably due to the impact of
higher incentive plan costs vs. 2019 and the cost of the
implementation of the new organization
NET SALES BY CATEGORY in million euros |
Q4 2018 |
Q4 2019 |
Change as reported |
FX impact17(in pts) |
Change in Perimeter18(in pts) |
Argentina impact19(in pts) |
Change on a Comparativebasis |
Group |
511.0 |
501.2 |
(1.9)% |
+1.6 |
+0.1 |
+0.2 |
(3.8)% |
Stationery |
170.4 |
169.3 |
(0.6)% |
+0.9 |
+2.9 |
+0.4 |
(4.8)% |
Lighters |
204.3 |
197.4 |
(3.4)% |
+1.5 |
+0.1 |
(0.1) |
(4.9)% |
Shavers |
123.1 |
123.5 |
+0.4% |
+1.6 |
+0.1 |
+0.3 |
(1.6)% |
Other Products |
13.2 |
10.9 |
(16.9)% |
(0.2) |
(21.2) |
0.0 |
+4.5% |
NET SALES PER CATEGORY in million euros |
FY 2018 |
FY 2019 |
Change as reported |
FX impact17(in pts) |
Change in Perimeter18 (in pts) |
Argentina impact19(in pts) |
Change on a Comparativebasis |
Group |
1,949.8 |
1,949.4 |
(0.0)% |
+2.3 |
(0.4) |
0.0 |
(1.9)% |
Stationery |
771.9 |
774.4 |
+0.3% |
+1.8 |
+2.0 |
(0.1) |
(3.4)% |
Lighters |
685.8 |
679.0 |
(1.0)% |
+2.7 |
0.0 |
0.0 |
(3.7)% |
Shavers |
438.0 |
463.0 |
+5.7% |
+2.3 |
+0.3 |
(0.1) |
+3.2% |
Other Products |
54.0 |
33.1 |
(38.7)% |
(0.1) |
(39.8) |
0.0 |
+1.2% |
NON-RECURRING ITEMS
in million euros |
Q4 2018 |
Q4 2019 |
FY 2018 |
FY 2019 |
Income From Operations |
62.5 |
43.6 |
258.8 |
252.7 |
·Cello Trademark and goodwill impairment in 2019 and Cello and
Pimaco goodwill impairment in 2018 |
5.5 |
44.3 |
74.2 |
44.3 |
·Restructuring costs (Transformation plan in 2018 and 2019, 2018
Stationery and Lighters manufacturing reorganization, 2018 Haco
Industries acquisition-related costs) |
15.4 |
12.8 |
15.4 |
44.7 |
·U.K pension adjustment for past service costs in 2019 |
- |
(9.9) |
- |
(9.9) |
·BIC Sport Divestiture |
4.9 |
- |
4.9 |
- |
·Argentina hyperinflationary accounting (IAS29) |
(1.2) |
- |
(0.9) |
- |
Normalized IFO |
87.1 |
90.7 |
352.4 |
331.8 |
- Restructuring costs are mostly associated with the
transformation plan “BIC-2022 Invent The Future”.
- In December 2019, the transfer of the Cello trademark from
India to France required to fair value the trademark. As a result
of this appraisal, the trademark was written down by 21 million
euros to 24 million euros. Also, in light of the adverse business
environment both in India and in Cello’s major export markets, BIC
performed an additional impairment test of the Cello unit, which
led to depreciate the Cello goodwill by 23 million euros
fully.
- The UK's favorable impact is coming from pension adjustment for
past service costs related to initial benefits contracts changes no
longer to be paid.
IMPACT OF CHANGE IN PERIMETER AND CURRENCY FLUCTUATIONS ON
NET SALES (EXCLUDES ARS) (in %) |
Q4 2018 |
Q4 2019 |
FY 2018 |
FY 2019 |
Perimeter |
(0.0) |
+0.1 |
(0.6) |
(0.4) |
Currencies |
(1.8) |
+1.6 |
(4.8) |
+2.3 |
Of which USD |
+1.2 |
+1.3 |
(1.5) |
+1.9 |
Of which BRL |
(1.7) |
(0.7) |
(1.5) |
(0.2) |
Of which INR |
(0.3) |
+0.2 |
(0.3) |
+0.1 |
Of which MXN |
(0.1) |
+0.4 |
(0.4) |
+0.3 |
Of which RUB and UAH |
(0.2) |
+0.3 |
(0.2) |
+0.1 |
CONDENSED PROFIT AND LOSS in million euros |
Q4 2018 |
Q4 2019 |
As reported |
Comparative basis |
FY 2018 |
FY 2019 |
As reported |
Comparative basis |
Net Sales |
511.0 |
501.2 |
(1.9)% |
(3.8)% |
1,949.8 |
1,949.4 |
0.0% |
(1.9)% |
- Cost of goods |
250.9 |
252.8 |
|
|
935.5 |
972.1 |
|
|
Gross profit |
260.1 |
248.4 |
|
|
1,014.3 |
977.3 |
|
|
- Administrative & other operating expenses (goodwill and
trademark impairment) |
197.6 |
204.8 |
|
|
755.5 |
724.6 |
|
|
Income from Operations |
62.5 |
43.6 |
|
|
258.8 |
252.7 |
|
|
- Finance revenue/costs |
(2.3) |
(4.1) |
|
|
2.8 |
(1.3) |
|
|
Income before tax |
60.2 |
39.5 |
|
|
261.6 |
251.4 |
|
|
- Income tax expense |
(10.4) |
(16.0) |
|
|
(88.2) |
(75.3) |
|
|
Net Income Group Share |
49.8 |
23.5 |
|
|
173.4 |
176.1 |
|
|
Earnings per Share Group Share (In euros) |
1.09 |
0.52 |
|
|
3.80 |
3.91 |
|
|
Average number of shares outstanding (net of treasury shares) |
45,598,109 |
45,056,076 |
|
|
45,598,109 |
45,056,076 |
|
|
CONDENSED BALANCE SHEET in million
euros |
December 31, 2018 |
January 1, 2019(restated
from IFRIC 23) |
December 31, 2019 |
ASSETS |
|
|
|
·Property, plant & equipment |
699.8 |
699.8 |
713.5 |
·Investment properties |
1.7 |
1.7 |
1.7 |
·Goodwill and intangible assets |
286.6 |
286.6 |
257.7 |
·Other non-current assets |
169.9 |
169.9 |
176.3 |
Non-current assets |
1,158.0 |
1,158.0 |
1,149.2 |
·Inventories |
449.2 |
449.2 |
455.6 |
·Trade and other receivables |
534.7 |
534.7 |
545.6 |
·Other current assets |
49.5 |
49.5 |
36.5 |
·Other current financial assets and derivative instruments |
18.1 |
18.1 |
6.7 |
·Cash and cash equivalents |
157.5 |
157.5 |
198.6 |
Current assets |
1,209.0 |
1,209.0 |
1,243.0 |
TOTAL ASSETS |
2,367.0 |
2,367.0 |
2,392.2 |
LIABILITIES & SHAREHOLDERS’ EQUITY |
|
|
|
Shareholders’ equity |
1,638.1 |
1,625.3 |
1,608.1 |
·Non-current borrowings |
32.0 |
32.0 |
32.3 |
·Other non-current liabilities |
250.1 |
263.0 |
263.3 |
Non-current liabilities |
282.1 |
295.0 |
295.6 |
·Trade and other payables |
137.7 |
137.7 |
126.4 |
·Current borrowings |
22.6 |
22.6 |
65.5 |
·Other current liabilities |
286.4 |
286.4 |
296.5 |
Current liabilities |
446.7 |
446.7 |
488.5 |
TOTAL LIABILITIES & SHAREHOLDERS’ EQUITY |
2,367.0 |
2,367.0 |
2,392.2 |
WORKING CAPITAL (in million euros) |
December 31, 2018 |
December 31, 2019 |
Total Working Capital |
621.2 |
637.8 |
Of which, inventories |
449.2 |
455.6 |
Of which, Trade and other receivables |
534.7 |
545.6 |
Of which, Trade and other payables |
(137.7) |
(126.4) |
CASH FLOW STATEMENT(in million
euros) |
FY 2018 |
FY 2019 |
Group Net income |
173.4 |
176.1 |
- Net income Group share |
173.4 |
176.1 |
- Argentina hyperinflationary accounting (IAS29) |
5.4 |
3.4 |
- Amortization and provisions |
204.1 |
168.7 |
- (Gain)/Loss from disposal of fixed assets |
4.3 |
0.2 |
- Others |
7.4 |
(13.9) |
CASH FLOW FROM OPERATIONS |
394.6 |
334.5 |
- (Increase)/decrease in net current working capital |
(73.0) |
(21.1) |
- Others |
(17.7) |
4.8 |
NET CASH FROM OPERATING ACTIVITIES (A) |
303.9 |
318.2 |
Capital expenditures20 |
(125.4) |
(104.9) |
(Purchase)/Sale of other current financial assets |
8.2 |
9.0 |
Divesture of Bic Sport |
2.7 |
- |
Haco Industries Ltd acquisition |
(6.3) |
(2.4) |
Lucky Stationery Nigeria Ltd acquisition |
- |
(13.8) |
Divesture of BIC Graphic North America and Asian Sourcing |
9.2 |
- |
Others |
1.7 |
1.3 |
NET CASH FROM INVESTING ACTIVITIES (B) |
(109.9) |
(110.8) |
Dividends paid |
(157.8) |
(155.2) |
Borrowings/(Repayments)/(Loans) |
(1.1) |
2.9 |
Share buy-back program net of stock-options exercised |
(49.9) |
(40.0) |
Others |
(17.7) |
(18.5) |
NET CASH FROM FINANCING ACTIVITIES (C) |
(226.5) |
(210.8) |
NET INCREASE/ (DECREASE) IN CASH AND CASH EQUIVALENTS NET
OF BANK OVERDRAFTS (A+B+C) |
(32.5) |
(3.4) |
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) |
(32.5) |
(3.4) |
Exchange difference |
(4.7) |
0.4 |
CLOSING CASH AND CASH EQUIVALENTS NET OF BANK
OVERDRAFTS |
149.8 |
146.8 |
RECONCILIATION WITH
ALTERNATIVE PERFORMANCE MEASURES
Normalized IFO reconciliationin million
euros |
FY 2018 |
FY 2019 |
|
Income from Operations |
258.8 |
252.7 |
|
Cello Trademark and goodwill impairment in 2019 and Cello and
Pimaco goodwill impairment in 2018 |
+74.2 |
+44.3 |
|
Restructuring costs (Transformation plan in 2018 and 2019, 2018
Stationery and Lighters manufacturing reorganization, 2018 Haco
Industries acquisition-related costs) |
+15.4 |
+44.7 |
|
U.K pension adjustment for past service costs in 2019 |
- |
(9.9) |
|
BIC Sport Divestiture |
+4.9 |
- |
|
Argentina hyperinflationary accounting (IAS29) |
(0.9) |
- |
|
Normalized IFO |
352.4 |
331.8 |
|
|
|
|
Normalized EPS reconciliationin million
euros |
FY 2018 |
FY 2019 |
EPS |
3.80 |
3.91 |
Cello Trademark and goodwill impairment in 2019 and Cello and
Pimaco goodwill impairment in 2018 |
+1.62 |
+0.98 |
Restructuring costs (Transformation plan in 2018 and 2019, 2018
Stationery and Lighters manufacturing reorganization, 2018 Haco
Industries acquisition related costs) |
+0.23 |
+0.69 |
U.K pension adjustment for past service costs in 2019 |
- |
(0.18) |
BIC Sport Divestiture |
+0.10 |
- |
Argentina hyperinflationary accounting (IAS29) |
+0.12 |
+0.07 |
Normalized EPS |
5.87 |
5.47 |
Net cash reconciliation(in million euros -
rounded figures) |
December 31, 2018 |
December 31, 2019 |
Cash and cash equivalents (1) |
+157.5 |
+198.6 |
Other current financial assets (2)21 |
+12.8 |
4.1 |
Current borrowings (3)22 |
(8.9) |
(52.8) |
Non-current borrowings (4) |
- |
(2.9) |
NET CASH POSITION (1) + (2) – (3) – (4) |
161.5 |
146.9 |
SHARE BUYBACK
PROGRAM
Share buy-back program – Societe BIC |
Number of sharesacquired |
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 |
31,923 |
79.74 |
2.6 |
July 2019 |
- |
- |
- |
August 2019 |
- |
- |
- |
September 2019 |
- |
- |
- |
October 2019 |
- |
- |
- |
November 2019 |
- |
- |
- |
December 2019 |
- |
- |
- |
Total |
478,667 |
81.83 |
39.2 |
CAPITAL AND VOTING
RIGHTS
As of December 31, 2019, the total number of
issued shares of SOCIÉTÉ BIC was 45,532,240 shares,
representing:
- 67,035,094 voting rights,
- 66,494,526 voting rights, excluding shares without voting
rights.
Total number of treasury shares held at the end
of December 2019: 540,568.
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 12 February 2020 were approved by the Board of Directors on 11
February 2020. A presentation related to this announcement is also
available on the BIC website (www.bicworld.com). The Group's
Statutory Auditors have performed their audit procedures on these
consolidated financial statements and the audit report relating to
the certification of these financial statements will be issued upon
completion of the procedures required for the filing of the
universal registration document.This document contains
forward-looking statements. Although BIC believes its expectations
are based on reasonable assumptions, these statements are subject
to 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 98 |
Press Contacts: +33 1 45 19 51
51 |
Michèle Ventura michele.ventura@bicworld.com |
Albane de La Tour d’Artaise
Albane.DeLaTourD'Artaise@bicworld.com |
|
Isabelle de Segonzac : +33 1 53 70 74 85isegonzac@image7.fr |
For more information, please consult the corporate website:
www.bicworld.com
2020 AGENDA – ALL DATES TO BE
CONFIRMED
First Quarter 2020 results |
23 April 2020 |
Conference call and Webcast |
Capital Markets Day |
19 May 2020 |
Meeting |
2020 AGM |
20 May 2020 |
Meeting |
First Half 2020 results |
29 July 2020 |
Conference call and Webcast |
Third Quarter 2020 results |
28 October 2020 |
Conference call and Webcast |
ABOUT BIC
BIC is a world leader in stationery, lighters,
and shavers. For 75 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 2019, BIC Net Sales were 1,949.4
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 Payable on 3 June 2020, subject to the approval at the AGM of
May 20, 20202 See main market assumptions on page 113 See glossary
page 174 Excluding 2018 Cello and Pimaco Goodwill Impairment, BIC
Sport Divestiture for 2018, restructuring costs &
Argentina hyperinflationary accounting for 2018 and 2019, Cello
trademark and goodwill impairment for 2019 and U.K pension
adjustment for past service costs in 2019.5 Employees and external
temporary6 this excludes the Argentinian peso.7 This excludes
impact of 2018 Argentina hyperinflation8 Excluding 2018 Cello
and Pimaco Goodwill Impairment, BIC Sport Divestiture for 2018,
restructuring costs & Argentina hyperinflationary
accounting for 2018 and 2019, Cello trademark and goodwill
impairment for 2019 and U.K pension adjustment for past service
costs in 2019.9 GfK- YTD December 2019 - EU7 – in value10 NPD – YTD
28DEC 2019 – in value11 Nielsen – YTD 28DEC 2019 –Modern Channel
only - in value12 IRI – YTD period ending 29-DEC-2019 – in value13
Nielsen – YTD DEC 2019 - in value14 IRI – Period ending
29-DEC-19 – in value15 Nielsen – Shaver non-refillable – YTD DEC
2019 in value16 BIC internal estimates based on Market panels
(IRI,Nielsen ) and Euromonitor17 Forex impact excluding Argentinian
Peso (ARS)18 Haco Industries Ltd and BIC Sport19 See glossary page
1720 Including respectively -1.6 million euros and +8.7 million
euros in 2018 and 2019 related to assets payable change21 In the
balance sheet at December 31, 2019 and 2018, the line “Other
current financial assets and derivative instruments” also includes
respectively 2.7M€ and 5.3M€ worth of derivative instruments.22
Excluding financial liabilities following IFRS16 implementation
- BIC_Q4 FY2019Results_PressRelease_correction
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