BIC: SECOND QUARTER & FIRST HALF 2021 RESULTS
BIC SECOND QUARTER &
FIRST HALF
2021
RESULTS
Clichy,
France,
July
28th,
2021
Solid results, driven by Net Sales growth in all divisions:
- Flame for Life performance boosted by an
exceptional start to the year in US Pocket and Utility Lighters,
which we don’t expect to repeat in the second half, as well as
robust growth in Latin America and the successful integration of
Djeep in Europe
- Human Expression result driven by Digital
Writing, while Core Writing Instruments markets remained
challenging in Latin America and India
- Blade Excellence fueled by the success of BIC
5-blade and Hybrid shavers despite a challenging competitive
environment
Strong growth in e-commerce in all regions,
including Developing Markets
Continued manufacturing
efficiencies and further savings from the Invent
the Future transformation plan
Sustained Free Cash Flow generation driven by strong Cash From
Operations
in million euros |
Q2 2020 |
Q2 2021 |
H1 2020 |
H1 2021 |
Group Net Sales |
418.9 |
505.7 |
775.8 |
916.7 |
Change as reported |
(23.1)% |
+20.7% |
(19.2) % |
+18.2% |
Change on a comparative basis |
(21.5)% |
+23.9% |
(18.2) % |
+22.5% |
Change on a constant currency basis |
(21.3)% |
+26.8% |
(17.7)% |
+26.2% |
EBIT Margin |
0.2% |
20.8% |
3.1% |
36.3% |
Adjusted EBIT Margin |
16.1% |
20.9% |
12.0% |
18.1% |
EPS (in euros) |
(0.07) |
1.53 |
0.49 |
5.12 |
Adjusted EPS (in euros) |
1.27 |
1.55 |
1.87 |
2.51 |
Free Cash Flow before acquisitions and
disposals |
23.1 |
67.7 |
42.3 |
103.7 |
Net Cash Position |
41.5 |
366.7 |
41.5 |
366.7 |
“Robust top line growth drove our strong first half results,
getting us back to pre-COVID levels on a comparative basis. A
standout was the performance of our Flame for Life division, which
grew across all key geographies, particularly in the U.S. I am also
pleased with the growth we are seeing from our recent acquisitions,
as well as our robust e-commerce results, and the launch of several
innovative and sustainable products into the market. We expect the
balance of the year to be more challenging as we continue to
navigate through current worldwide supply chain disruptions and
adverse input costs, but we remain focused on what we can control
and the pursuit of our transformation journey, which I believe will
drive our profitable growth trajectory and create value for all our
stakeholders.”
Gonzalve Bich, Chief Executive
Officer
Update of 2021 Outlook
(based on current market
assumptions1)
Given H1 performance and current market assumptions and without
any substantial market deterioration during the second half,
we upgrade our Net Sales outlook and
now expect to deliver +9% to +11% total Net Sales
growth at constant currencies.
The balance of the year will be affected by input cost inflation
and the current disruption of supply chains worldwide, leading to
higher than initially expected raw materials and freight &
distribution costs. We anticipate an increase in
working capital notably driven by the building of strategic
inventories to protect supply and delivery for 2022.
Full-Year 2021 Free Cash Flow
target remains above
200 million euros.
H1 2021 HIGHLIGHTS
FIRST HALF NET SALES BY GEOGRAPHY in million euros |
H1 2020 |
H1 2021 |
% As reported |
% at constant currencies |
% On a comparative basis |
Group |
775.8 |
916.7 |
+18.2% |
+26.2% |
+22.5% |
Europe |
257.7 |
292.0 |
+13.3% |
+15.2% |
+12.7% |
North America |
343.2 |
406.4 |
+18.4% |
+28.7% |
+22.5% |
Latin America |
94.0 |
125.9 |
+33.9% |
+55.1% |
+54.3% |
Middle East and Africa |
39.0 |
51.1 |
+31.2% |
+37.7% |
+37.7% |
Asia and Oceania (including India) |
41.9 |
41.3 |
(1.6)% |
(1.5)% |
+4.6% |
First Half
2021 Net Sales
increased
26.2% at
constant currencies. The unfavorable impact of currency
fluctuations (–7.2 points) was mainly due to the decrease of the US
Dollar and Brazilian Real against the Euro2. Excluding the impact
of acquisitions and divestitures, growth on a comparative basis was
22.5%.
- Growth was fueled by the
Flame for Life division, with a robust performance
in Europe, North America, and Latin America. Boosted by a strong
start-to-the-year, performance in the US contributed approximately
10 points to H1 Group Net Sales growth on a comparative basis. This
was driven by improved market trends in value (total US Lighter
market grew 6.2% YTD June3) combined with customers' order
calibration during the first four months of the year, in response
to unforeseen consumer demand. BIC outperformed the US market in
both volume and value, propelled by distribution gains, favorable
mix, and increased pricing.
- In Human
Expression, Rocketbook continue to show
outstanding results, with Net Sales up more than 90% in H1. All
online channels contributed to growth, with sales to Amazon driven
by the success of June's Prime day. BIC's H1 Core Writing
Instruments performance was driven by Europe, where total
Back-to-School sell-in is expected to grow mid-single digit in
2021. In North America, the lack of product availability resulting
from supply chain challenges negatively affected shipments to
customers and are expected to impact Back-to-School sell-in.
- The Blade
Excellence division performance was fueled by the success
of our 3-blade products in Latin America. While the US in-store
distribution remained increasingly competitive, particularly in the
female 3-blade segment, we continued to grow our 5-blade business
in both male and female and outpaced the fast-growing online
market.
E-commerce (excluding
Rocketbook) delivered a solid +26% growth
compared to the same period last year, fueled by Pure Players
channels (+21%) and Omniretailers (+30%). Growth in Latin America,
Middle East and Africa, and India was driven by increased
distribution and efficient promotional campaigns.
Consistent with our Sustainable Development
journey, we launched several innovative products with
environmental benefits in H1, including the BIC® Cristal™ Re'New,
our first rechargeable metallic Cristal Ball Pen, and the BIC®
BAMBOO, our first CO2 neutral labeled shaver with a responsibly
sourced bamboo handle. We also started to rollout our new
sustainable “SD Hybrid” shaver range in Europe.
We achieved more
than 15.0
million euros
incremental benefit from our
Invent the Future plan in H1, of which approximately 4.0 million
euros in direct and indirect procurement. BIC's raw materials
market prices soared 10% in Q2 compared to Q1 2021, the rebound in
global consumption prompted a disruption in supply chains
worldwide, resulting in a surge in sea freight costs, coupled with
increased port to port lead-times. As previously communicated, we
expect the current market conditions to weigh on Full Year 2021
margins.
H1 2021 Free Cash
Flow before acquisitions and disposals
totaled 103.7 million euros, including 30.3 million euros of CAPEX.
Net Cash Position was 366.7 million euros, positively impacted by
173.9 million euros of proceeds from our headquarters' sale.
EARNINGS
BEFORE
INTEREST AND TAXES
(EBIT) AND
ADJUSTED EBIT
in million euros |
Q2 2020 |
Q2 2021 |
H1 2020 |
H1 2021 |
Net Sales |
418.9 |
505.7 |
775.8 |
916.7 |
Gross Profit |
188.8 |
261.8 |
371.2 |
473.9 |
Gross Profit margin |
45.1% |
51.8% |
47.8% |
51.7% |
EBITDA |
92.8 |
155.1 |
115.6 |
382.1 |
EBIT |
1.0 |
105.2 |
24.0 |
332.6 |
EBIT margin |
0.2% |
20.8% |
3.1% |
36.3% |
Non-recurring items |
66.5 |
0.3 |
68.9 |
(166.5) |
Adjusted EBIT |
67.5 |
105.6 |
92.9 |
166.1 |
Adjusted EBIT margin |
16.1% |
20.9% |
12.0% |
18.1% |
H1 Gross Profit margin
increased by 3.9 points to 51.7% compared to 47.8% in H1 2020.
Excluding 2020 under-absorption of fixed costs due to the COVID-19
pandemic, the Gross Profit margin increased by 1.7 points. The
improvement was driven by the strong increase in North America
Lighter sales, a decrease in Brand Support above Net Sales, and
manufacturing and raw material procurement efficiencies. This was
partly offset by adverse Forex from Latin American currencies
against the US Dollar.
H1 Adjusted
EBIT was favorably impacted by operating
leverage from Net Sales growth. Freight and Distribution costs were
higher as a result of the increase in customer demand.
H1 2021
non-recurring items included:
- 167.7 million euros from Clichy Headquarters sale gain in Q1
2021,
- 3.0 million euros from Pimaco divestiture gain in Q1 2021,
- 4.2 million euros of restructuring costs related to BIC's
transformation plan,
Key components of the change in Adjusted ebit margin
(in points) |
Q1 2021vs. Q1 2020 |
Q2 2021vs. Q2 2020 |
H1 2021vs. H1 2020 |
|
+0.5 |
+2.6 |
+1.7 |
|
+1.2 |
(0.5) |
+0.3 |
|
+5.9 |
+2.7 |
+4.1 |
Total change in Adjusted EBIT margin |
+7.6 |
+4.8 |
+6.1 |
NET INCOME AND EPS
in million euros |
Q2 2020 |
Q2 2021 |
H1 2020 |
H1 2021 |
EBIT |
1.0 |
105.2 |
24.0 |
332.6 |
Finance revenue/costs |
(1.9) |
(4.9) |
9.9 |
(4.0) |
Income before Tax |
(0.9) |
100.3 |
33.9 |
328.5 |
Net Income Group share |
(3.0) |
68.6 |
22.1 |
230.2 |
Adjusted Net Income Group Share5 |
57.0 |
69.6 |
84.0 |
112.7 |
Adjusted EPS Group Share (in euros) |
1.27 |
1.55 |
1.87 |
2.51 |
EPS Group Share (in euros) |
(0.07) |
1.53 |
0.49 |
5.12 |
H1 2021
finance revenue decrease is due to 2020's strong
favorable impact of the fair value adjustments to financial assets
denominated in US Dollar (versus Brazilian Real and Mexican
Peso).H1 2021
effective tax rate was 29.9% vs.
28% in H1 2020. FY 2020 effective tax rate excluding Cello
impairment, was 31.2%.
NET CASH POSITION
CHANGE IN NET CASH POSITION in million euros |
2020 |
2021 |
Net Cash position (beginning of period –
December) |
146.9 |
183.9 |
Net cash from operating activities |
+86.1 |
+134.0 |
- Of which operating cash flow
|
+136.6 |
+230.3 |
- Of which change in working capital and others
|
(50.5) |
(96.3) |
CAPEX6 |
(43.8) |
(30.3) |
Dividend payment |
(110.2) |
(80.9) |
Share buyback program |
(7.4) |
(15.7) |
Net cash from the liquidity contract |
- |
+1.2 |
Proceed from the sale of Clichy Headquarters |
- |
+173.9 |
Proceed from Pimaco divestiture |
- |
+3.4 |
Acquisitions7 |
(2.7) |
(7.2) |
Other items |
(27.4) |
+4.4 |
Net Cash position (end of period –
June) |
41.5 |
366.7 |
At the end of June,
the Group's Net Cash position was
366.7 million euros, positively impacted by the sale of Clichy
Headquarters and Pimaco. The tax related to the HQ sale (46 million
euros) will be paid later in the year. Net cash from operating
activities was impacted by an unfavorable change in working capital
due to increased accounts receivables following strong H1 Net
Sales.
SHAREHOLDERS'
REMUNERATION
- Ordinary dividend
of 1.80
euros per share paid in June 2021.
- 15.7
million euros in share buy-backs was completed by
SOCIÉTÉ BIC at the end of June 2021. 277,834 shares were purchased
at an average price of 56.58 euros through the ESG Impact
Share buyback program launched in March in partnership with Exane
BNP Paribas.
OPERATIONAL TRENDS BY
DIVISION
HUMAN EXPRESSION
(STATIONERY)
in million euros |
Q2 2020 |
Q2 2021 |
H1 2020 |
H1 2021 |
Volumes sold in million units |
|
|
2,457.9 |
2,742.7 |
Change vs. prior year |
|
|
(29.6)% |
+11.6% |
Net Sales |
166.9 |
202.2 |
293.9 |
333.3 |
Change as reported vs. prior year |
(33.9)% |
+21.2% |
(26.7)% |
+13.4% |
Change on a comparative basis vs. prior year |
(33.2)% |
+20.1% |
(26.5)% |
+12.1% |
Change at constant currency vs. prior year |
(33.1)% |
+25.1% |
(25.6)% |
+19.1% |
Adjusted EBIT |
18.2 |
24.2 |
19.0 |
27.6 |
Adjusted EBIT Margin |
10.9% |
12.0% |
6.5% |
8.3% |
EBIT |
(35.7) |
23.9 |
(34.9) |
29.1 |
EBIT Margin |
(21.4)% |
11.8% |
(11.9)% |
8.7% |
Growth in Human Expression was notably driven
by robust performance in Digital Writing with the success of
Rocketbook, helped by a favorable comparable basis versus H1 2020
where the first wave of COVID-19 lockdowns drastically affected our
key markets.
In Europe, sell-in performance was driven by a
rebound in the traditional channel with higher demand from Office
Suppliers and growth in Modern Mass Channel in France, Italy and in
the UK. Second Quarter Net Sales were impacted by a positive
phasing impact in Back-to-school shipments from Q3 to Q2 compared
to last year driven by customer demand.
In North America, the US
Stationery market rebounded +11.5% in value8 vs 2020 hit by
lockdowns and driven mostly by Gel segment which increased +30% in
value. BIC lost 0.8 points market share in value, outperforming in
Ball Pen and Correction and underperforming in the growing Gel and
Permanent Marker segments. In line with our Horizon strategy, we
performed strongly in Digital Writing as Rocketbook sales grew over
90% versus last year. Overall sell-in performance was negatively
impacted by product shortage due to supply chain challenges
affecting Back-to-School shipments.
While markets continued to be tough, declining double-digit in
Brazil and Mexico9, BIC outperformed in both
markets driven by Coloring and Pens segments. In
South Africa, BIC gained 1.4 points in value10
driven by improved performance in Coloring, Correction and Marking.
Our recent acquisition of Lucky Stationery in Nigeria continues to
perform well with H1 2021 Net Sales more than doubling,
underpinning BIC's efficient route-to-market strategy in the
region. In India, Cello Net Sales grew
double-digit, with strong performance in the first quarter, driven
by improved domestic market conditions and a solid performance in
e-commerce. However, the market environment in India, having
returned to lockdowns in April, remains extremely challenging with
ongoing mobility disruptions and office/retail closures.
H1 2021
Human Expression division
adjusted EBIT
margin was 8.3% compared to 6.5% in 2020. This
increase was driven by higher Net Sales (including Rocketbook) and
manufacturing and raw material procurement efficiencies, partly
offset by unfavorable Forex (from Latin American currencies versus
US Dollar) and higher freight and distribution costs.
FLAME FOR LIFE (LIGHTERS)
in million euros |
Q2 2020 |
Q2 2021 |
H1 2020 |
H1 2021 |
Volumes sold in million units |
|
|
592.2 |
799.3 |
Change vs. prior year |
|
|
(16.4)% |
+35.0% |
Net Sales |
147.3 |
192.9 |
268.2 |
367.4 |
Change as reported vs. prior year |
(13.3)% |
+31.0% |
(16.1)% |
+37.0% |
Change on a comparative basis vs. prior year |
(11.2)% |
+36.9% |
(14.7)% |
+44.7% |
Change at constant currency vs. prior year |
(11.2)% |
+39.4% |
(14.6)% |
+47.7% |
Adjusted EBIT |
52.5 |
80.5 |
87.3 |
145.7 |
Adjusted EBIT Margin |
35.7% |
41.7% |
32.5% |
39.6% |
EBIT |
49.5 |
80.5 |
84.0 |
143.8 |
EBIT Margin |
33.6% |
41.7% |
31.3% |
39.2% |
The Flame for Life division was the top
performer of the first half with growth boosted by improved market
conditions in US Pocket and Utility Lighters, strong growth in
Latin America, and the integration of Djeep in Europe.
In Europe, sell-in performance was driven by a
rebound in both traditional channel and Modern Mass Market in
France, a good performance in both Pocket and Utility lighters in
Italy combined with strong growth in Tobacco retailers, and
successful new listings in Russia. Djeep lighters performed well
with the successful launch in several European countries during the
second quarter.
In the US, the Pocket Lighters market declined
2.9% in volume and grew 5.5 % in value11 boosted by positive market
trends and customers realigning their orders reflecting the start
to the year's unexpected consumer demand. BIC gained share in both
volume (+2.4 points) and value (+1.2 points), fueled by growth in
the convenience channel, the success of EZ Reach contributing to
additional listings and to favorable mix, and increased pricing.
The Utility lighter market grew 10% in value12, with BIC slightly
underperforming year-to-date due to lack of product availability
resulting from sea freight challenges, and longer lead times. BIC
remains the leader in this segment, with 53% market share in value,
up 6.8 points compared to June 2020. BIC overall sell-in
performance was fueled by strong market growth (approximately 33
points), distribution gains (approximately 8 points), efficiency in
our pricing strategy including Revenue Growth Management
(approximately 7 points), and positive impact from customers
prebuying following the May 2021 announced price increase
(approximately 7 points).
In Latin America, sell-in
performance was fueled by Brazil following a low level of
customers' inventory at the end of 2020 and higher demand for both
smoking and non-smoking usages, combined with lower importations of
lighters triggered by adverse currency fluctuations (devaluation of
the Brazilian Real). In Mexico sell-out performance contributed to
strong sell-in with distribution gains in all regions.
H1 2021
Flame for Life
division adjusted
EBIT margin was 39.6% compared to 32.5%
in 2020, driven by the strong increase in Net Sales and the
favorable impact of price adjustments in US Lighters. This was
partially offset by higher Brand Support investments compared to
the same period last year and higher Freight and Distribution
costs.
BLADE EXCELLENCE
(SHAVERS)
in million euros |
Q2 2020 |
Q2 2021 |
H1 2020 |
H1 2021 |
Volumes sold in million units |
|
|
1,077.9 |
1,193.0 |
Change vs. prior year |
|
|
(13.7)% |
+10.7% |
Net Sales |
98.6 |
104.0 |
200.7 |
200.4 |
Change as reported vs. prior year |
(14.6)% |
+5.4% |
(10.6)% |
(0.1)% |
Change on a comparative basis vs. prior year |
(11.5)% |
+11.6% |
(8.8)% |
+8.0% |
Change at constant currency vs. prior year |
(11.0)% |
+11.9% |
(8.1)% |
+8.4% |
Adjusted EBIT |
14.3 |
20.2 |
21.9 |
32.4 |
Adjusted EBIT Margin |
14.5% |
19.4% |
10.9% |
16.2% |
EBIT |
9.8 |
20.1 |
17.3 |
32.3 |
EBIT Margin |
10.0% |
19.3% |
8.6% |
16.1% |
The Blade Excellence division's overall
performance was driven by the success of our added-value products
such as 5 blade shavers and hybrid ranges, despite challenging
competitive environment in key geographies.
In Europe, sell-in performance was negatively
impacted by challenging markets trends, notably in France, the UK
and Italy and product availability issues in several countries,
partially offset by successful new listings in Eastern Europe.
In the US, the in-store
Disposable market declined 3.1% in value13 with continued softness
in the category driven by aggressive promotional activity and
numerous new products launched by competition in H1 2021, including
value positioning items. BIC lost 2.2 points market share, 3.5
points in the female segment mostly in 3 blade and 1.2 points in
the male segment. Despite these headwinds, and in line with the
Horizon strategy, we continued to focus on premium segments and
successfully gained +0.7 points in value in both men's and women's
4 and 5 blade segments. We outpaced the online market, gaining +0.9
points13.
In Latin America, our trade-up
strategy towards the triple-blade offering continued to pay off and
drove overall performance in both Brazil and Mexico. Brazil's
market grew 1.6% in value, and while we lost -0.2 share points hit
by competitive challenges in traditional trade, we outperformed in
the three-blade segment, with BIC® 3 gaining +0.5 points14. In
Mexico, BIC lost 0.6 points in share, in a growing market, yet
gained in Female with the BIC® Soleil range up +0.5 points.
H1 2021
Blade Excellence division
adjusted EBIT
margin was 16.2% compared to 10.9% in 2020,
impacted positively by operating leverage from Net Sales growth,
and manufacturing and raw material procurement efficiencies.
OTHER PRODUCTS
in million euros |
Q2 2020 |
Q2 2021 |
H1 2020 |
H1 2021 |
Net Sales |
6.1 |
6.6 |
13.1 |
15.7 |
Change as reported |
(12.3)% |
+8.7% |
(14.1)% |
+19.7% |
Change on a comparative basis |
(11.2)% |
+7.9% |
(13.4)% |
+19.5% |
Change at constant currency |
(11.5)% |
+7.9% |
(13.5)% |
+19.5% |
Adjusted EBIT |
(0.2) |
(2.8) |
(1.1) |
(3.0) |
EBIT |
(2.6) |
(2.8) |
(3.5) |
(3.0) |
UNALLOCATED COSTS
in million euros |
Q2 2020 |
Q2 2021 |
H1 2020 |
H1 2021 |
Adjusted EBIT |
(17.2) |
(16.5) |
(34.2) |
(36.5) |
EBIT |
(20.1) |
(16.5) |
(38.9) |
130.3 |
H1 2021 unallocated
costs are mainly related to Corporate
headquarters costs, and Clichy Headquarters sales
capital gain amounting 167.7 million euros. The
decrease in Adjusted EBIT is due to the costs of
the implementation of the transformation plan.
BIC’S
SUSTAINABLE DEVELOPMENT
JOURNEY
In line with our Sustainable Development journey, we launched
several innovative products with environmental benefits in H1, and
moved a step forward to reducing our overall carbon footprint:
- The BIC® Cristal® Re'New™, our first rechargeable metallic
Cristal Ball Pen, was introduced in Europe in January. This
refillable premium ball pen completes BIC's iconic Cristal® range,
offering a metal body, and a recycled plastic cap.
- In April, BIC USA launched BIC® ReVolution, a full range
eco-friendly Stationery line made of at least 50%recycled plastic.
The BIC® ReVolution Ocean Retractable Ball
Pens comprises 73% recycled ocean-bound plastic, material
collected within 50 km of a shore or a waterway that leads to the
ocean, preventing it from entering the ocean.
- In May, we launched our first CO2-neutral labeled shaver with a
responsibly sourced bamboo handle: the
BIC®
BAMBOO. This
five-blade Hybrid Flex 5 with a movable head has a handle made from
a natural raw material, namely responsibly sourced bamboo. BIC®
Bamboo is carbon neutral and comes in 100% recyclable cardboard
packaging made of 50% recycled paper, including refills in 95%
recycled paper packaging.
- During the First Half, we introduced our new “SD
Hybrid” shaver range in
Europe. Made with recycled plastic handles, this range of
innovative shavers with recyclable packaging will be deployed in
North America and Latin America during the second half of the
year.
- In May 2021, we upgraded our renewable electricity target and
committed to achieve 100% by 2025. We also pledged to define a CO2
emissions reduction roadmap by our 2022 Annual General
Meeting.
- Our future headquarters in Clichy
(France) will be certified BREEAM (Building Research Establishment
Environmental Assessment Method), thus meeting the highest
requirements for environmental performance and energy consumption
efficiency.
APPENDIX
2021 OUTLOOK ASSUMPTIONS
Our 2021 outlook is based on the following market
assumptions26F15:
Market Trends (in value):
- Europe: Flat to slight increase in Stationery,
slight increase in Lighters, high-single-digit decrease in
Shavers
- North America:
- Mid-single digit increase in US Stationery market,
- Low-single digit increase for total US pocket Lighter
market,
- Low to mid-single-digit decrease in total US one-piece Shaver
market,
- Latin America: high single to double-digit
decrease in Stationery, mid-single-digit increase in Lighters and
low to mid-single-digit increase in Shavers,
- India: high-single digit increase in
Stationery.
EBIT and Free Cash Flow
drivers:
- Flat Gross Profit Margin with increased volumes and positive
price impact offset by higher Raw Materials costs, and adverse
FX
- Increase in Freight and Distribution.
- Increase in Brand Support, R&D and Innovation to support
Net Sales growth
- Lower OPEX as % of Net Sales
- Approximately 100 million euros in CAPEX
Currency: 2021 USD-Euro hedging rate: 1.13
SECOND QUARTER NET SALES BY GEOGRAPHYin million euros |
Q2 2020 |
Q2 2021 |
% As reported |
% at constant currencies |
% On a comparative basis |
Group |
418.9 |
505.7 |
+20.7% |
+26.8% |
+23.9% |
Europe |
138.6 |
166.8 |
+20.3% |
+21.5% |
+19.3% |
North America |
202.8 |
222.3 |
+9.6% |
+19.1% |
+15.0% |
Latin America |
39.4 |
67.7 |
+71.6% |
+81.5% |
+81.7% |
Middle East and Africa |
18.9 |
29.1 |
+54.1% |
+57.9% |
+57.9% |
Asia and Oceania (including India) |
19.1 |
19.8 |
+3.4% |
+2.4% |
+9.1% |
FIRST HALF NET SALES BY GEOGRAPHY in million euros |
H1 2020 |
H1 2021 |
% As reported |
% at constant currencies |
% On a comparative basis |
Group |
775.8 |
916.7 |
+18.2% |
+26.2% |
+22.5% |
Europe |
257.7 |
292.0 |
+13.3% |
+15.2% |
+12.7% |
North America |
343.2 |
406.4 |
+18.4% |
+28.7% |
+22.5% |
Latin America |
94.0 |
125.9 |
+33.9% |
+55.1% |
+54.3% |
Middle East and Africa |
39.0 |
51.1 |
+31.2% |
+37.7% |
+37.7% |
Asia and Oceania (including India) |
41.9 |
41.3 |
(1.6)% |
(1.5)% |
+4.6% |
SECOND QUARTER NET SALES BY CATEGORY in million euros |
Q2 2020 |
Q2 2021 |
Change as reported |
FX
impact16(in points) |
Change in Perimeter17(in
points) |
Argentina impact18(in
points) |
Change on a Comparativebasis |
Group |
418.9 |
505.7 |
+20.7% |
(5.5) |
+2.2 |
+0.1 |
+23.9% |
Stationery- Human Expression |
166.9 |
202.2 |
+21.2% |
(3.6) |
+4.6 |
+0.1 |
+20.1% |
Lighters- Flame for Life |
147.3 |
192.9 |
+31.0% |
(7.7) |
+1.6 |
+0.2 |
+36.9% |
Shavers- Blade Excellence |
98.6 |
104.0 |
+5.4% |
(5.8) |
(0.3) |
(0.1) |
+11.6% |
Other Products |
6.1 |
6.6 |
+8.7% |
+0.8 |
0.0 |
0.0 |
+7.9% |
FIRST HALF NET SALES BY CATEGORY in million euros |
H1 2020 |
H1 2021 |
Change as reported |
FX impact(in points) |
Change in Perimeter(in points) |
Argentina impact(in points) |
Change on a Comparativebasis |
Group |
775.8 |
916.7 |
+18.2% |
(7.2) |
+3.0 |
(0.1) |
+22.5% |
Stationery- Human Expression |
293.9 |
333.3 |
+13.4% |
(4.9) |
+6.5 |
(0.3) |
+12.1% |
Lighters- Flame for Life |
268.2 |
367.4 |
+37.0% |
(9.9) |
+1.9 |
+0.3 |
+44.7% |
Shavers- Blade Excellence |
200.7 |
200.4 |
(0.1)% |
(7.7) |
(0.4) |
0.0 |
+8.0% |
Other Products |
13.1 |
15.7 |
+19.7% |
+0.2 |
0.0 |
0.0 |
+19.5% |
IMPACT OF CHANGE IN PERIMETER AND CURRENCY FLUCTUATIONS ON NET
SALES (EXCLUDES ARS) (in %) |
Q2 2020 |
Q2 2021 |
H1 2020 |
H1 2021 |
Perimeter |
(0.1) |
+2.2 |
(0.1) |
+3.0 |
Currencies |
(1.5) |
(5.5) |
(1.0) |
(7.2) |
Of which USD |
+0.7 |
(5.2) |
+0.8 |
(4.8) |
Of which BRL |
(1.1) |
(0.4) |
(1.1) |
(1.4) |
Of which MXN |
(0.4) |
+0.4 |
(0.3) |
(0.1) |
Of which AUD |
(0.1) |
+0.2 |
(0.1) |
+0.2 |
Of which ZAR |
(0.1) |
+0.2 |
(0.1) |
- |
Of which INR |
- |
(0.1) |
- |
(0.2) |
Of which RUB and UAH |
(0.1) |
(0.3) |
(0.1) |
(0.4) |
EBIT BY CATEGORY in million euros |
Q2 2020 |
Q2 2021 |
H1 2020 |
H1 2021 |
Group |
1.0 |
105.2 |
24.0 |
332.6 |
Margin |
0.2% |
20.8% |
3.1% |
36.3% |
Stationery- Human Expression |
(35.7) |
23.9 |
(34.9) |
29.1 |
Margin |
(21.4)% |
11.8% |
(11.9)% |
8.7% |
Lighters- Flame for Life |
49.5 |
80.5 |
84.0 |
143.8 |
Margin |
33.6% |
41.7% |
31.3% |
39.2% |
Shavers- Blade Excellence |
9.8 |
20.1 |
17.3 |
32.3 |
Margin |
10.0% |
19.3% |
8.6% |
16.1% |
Other Products |
(2.6) |
(2.8) |
(3.5) |
(3.0) |
Unallocated costs |
(20.1) |
(16.5) |
(38.9) |
130.3 |
ADJUSTED EBIT BY CATEGORY in million euros |
Q2 2020 |
Q2 2021 |
H1 2020 |
H1 2021 |
Group |
67.5 |
105.6 |
92.9 |
166.1 |
Margin |
16.1% |
20.9% |
12.0% |
18.1% |
Stationery- Human Expression |
18.2 |
24.2 |
19.0 |
27.6 |
Margin |
10.9% |
12.0% |
6.5% |
8.3% |
Lighters- Flame for Life |
52.5 |
80.5 |
87.3 |
145.7 |
Margin |
35.7% |
41.7% |
32.5% |
39.6% |
Shavers- Blade Excellence |
14.3 |
20.2 |
21.9 |
32.4 |
Margin |
14.5% |
19.4% |
10.9% |
16.2% |
Other Products |
(0.2) |
(2.8) |
(1.1) |
(3.0) |
Unallocated costs |
(17.2) |
(16.5) |
(34.2) |
(36.5) |
CONDENSED PROFIT AND LOSS in million euros |
Q2 2020 |
Q2 2021 |
H1 2020 |
H1 2021 |
Net Sales |
418.9 |
505.7 |
775.8 |
916.7 |
Cost of goods |
230.1 |
243.9 |
404.6 |
442.8 |
Gross profit |
188.8 |
261.8 |
371.2 |
473.9 |
Administrative & net other operating expenses/ (gain) |
187.8 |
156.6 |
347.2 |
141.3 |
EBIT |
1.0 |
105.2 |
24.0 |
332.6 |
Finance revenue/costs |
(1.9) |
(4.9) |
9.9 |
(4.0) |
Income before tax |
(0.9) |
100.3 |
33.9 |
328.5 |
Income tax expense |
(2.1) |
(31.7) |
(11.8) |
(98,4) |
Net Income Group Share |
(3.0) |
68.6 |
22.1 |
230.2 |
Earnings per Share Group Share (in euros) |
(0.07) |
1.53 |
0.49 |
5.12 |
Average number of shares outstanding (net of treasury shares) |
44,967,891 |
44,967,216 |
44,967,891 |
44,967,216 |
BALANCE SHEETin million euros |
June 30,
2020 |
December
31, 2020 |
June 30,
2021 |
ASSETS |
- Property, plant &
equipment
|
637.9 |
613.4 |
590.7 |
|
1.6 |
1.5 |
1.9 |
- Goodwill and intangible assets
|
238.7 |
309.8 |
312.2 |
|
166.2 |
138.9 |
148.5 |
Non-current assets |
1,044.4 |
1.063.6 |
1.053.3 |
|
484.9 |
379.0 |
443.0 |
- Trade and other receivables
|
517.1 |
409.6 |
531.0 |
|
34.2 |
25.3 |
29.2 |
- Other current financial assets and
derivative instruments
|
4.5 |
26.1 |
8.2 |
- Cash and cash equivalents
|
201.2 |
265.7 |
450.0 |
Current assets |
1,241.9 |
1,105.8 |
1,461.4 |
TOTAL ASSETS |
2,286.3 |
2,169.4 |
2,514.7 |
LIABILITIES & SHAREHOLDERS'
EQUITY |
Shareholders’ equity |
1,387.2 |
1.456.4 |
1.641.5 |
|
32.3 |
28.0 |
24.8 |
- Other non-current liabilities
|
262.7 |
222.2 |
199.3 |
Non-current liabilities |
295.0 |
250.2 |
224.1 |
|
140.0 |
99.5 |
167.2 |
|
169.0 |
90.0 |
90.9 |
- Other current liabilities
|
295.1 |
273.4 |
391.0 |
Current liabilities |
604.1 |
462.8 |
649.1 |
TOTAL LIABILITIES & SHAREHOLDERS’ EQUITY |
2,286.3 |
2,169.4 |
2,514.7 |
WORKING CAPITAL in million euros |
H1 2020 |
H1 2021 |
Total Working Capital |
648.3 |
535.6 |
Of which, inventories |
484.9 |
443.0 |
Of which, trade and other receivables |
517.1 |
531.0 |
Of which, Trade and other payables |
(140.0) |
(167.3) |
CASH FLOW STATEMENTin million euros |
H1 2020 |
H1 2021 |
Group Net income |
22.1 |
230.2 |
- Argentina hyperinflationary accounting (IAS29)
|
0.8 |
1.4 |
- Amortization and provisions
|
111.3 |
60.2 |
- (Gain)/Loss from disposal of fixed assets
|
0.1 |
(170.0) |
|
2.5 |
108.6 |
CASH FLOW FROM OPERATIONS |
136.6 |
230.3 |
- (Increase)/decrease in net current working capital
|
(31.2) |
(62.6) |
|
(19.3) |
(33.7) |
NET CASH FROM OPERATING ACTIVITIES (A) |
86.1 |
134.0 |
|
(43.8) |
(30.3) |
- (Purchase)/Sale of other current financial assets
|
3.9 |
- |
- Proceed from the sale of Clichy Headquarters
|
- |
+173.9 |
- Proceed from Pimaco divestiture
|
- |
+3.4 |
|
(2.7) |
(7.2) |
|
0.4 |
1.8 |
NET CASH FROM INVESTING ACTIVITIES (B) |
(42.2) |
141.7 |
|
(110.2) |
(80.9) |
- Borrowings/(Repayments)/(Loans)
|
105.0 |
0.9 |
|
(7.4) |
(14.5) |
|
(8.8) |
(8.7) |
NET CASH FROM FINANCING ACTIVITIES (C) |
(21.4) |
(103.3) |
NET INCREASE/ (DECREASE) IN CASH AND CASH EQUIVALENTS NET OF BANK
OVERDRAFTS (A+B+C) |
22.5 |
172.5 |
OPENING CASH AND CASH EQUIVALENTS NET OF BANK OVERDRAFTS |
146.8 |
264.7 |
- Net increase / decrease in cash and cash equivalents net of
bank overdrafts (A+B+C)
|
22.5 |
172.5 |
|
(18.9) |
11.3 |
CLOSING CASH AND CASH EQUIVALENTS NET OF BANK OVERDRAFTS |
150.4 |
448.5 |
RECONCILIATION WITH ALTERNATIVE PERFORMANCE
MEASURES
ADJUSTED EBIT RECONCILIATIONin million euros |
Q2 2020 |
Q2 2021 |
H1 2020 |
H1 2021 |
EBIT |
1.0 |
105.2 |
24.0 |
332.6 |
Restructuring costs (Transformation plan) and Ecuador factory
closure in H1 2020 |
5.5 |
0.3 |
7.9 |
4.2 |
Cello impairment |
41.7 |
- |
41.7 |
- |
Some Expenses related to the COVID-19 epidemic mainly under
absorption of fixed costs |
19.3 |
- |
19.3 |
- |
Clichy Headquarters sales capital gain |
- |
- |
- |
(167.7) |
Pimaco divestiture capital gain |
- |
- |
- |
(3.0) |
Adjusted EBIT |
67.5 |
105.6 |
92.9 |
166.1 |
ADJUSTED EPS RECONCILATIONin million euros |
Q2 2020 |
Q2 2021 |
H1 2020 |
H1 2021 |
EPS |
(0.07) |
1.53 |
0.49 |
5.12 |
Restructuring costs (Transformation plan) and Ecuador factory
closure in H1 2020 |
+0.09 |
+0.01 |
+0.12 |
+0.07 |
Cello impairment |
+0.93 |
- |
+0.93 |
- |
Some Expenses related to the COVID-19 epidemic mainly under
absorption of fixed costs |
+0.31 |
- |
+0.31 |
- |
Argentina hyperinflationary accounting (IAS29) |
+0.01 |
+0.01 |
+0.02 |
+0.03 |
Clichy Headquarters sales capital gain |
- |
- |
- |
(2.67) |
Pimaco divestiture capital gain |
- |
- |
- |
(0.04) |
Adjusted EPS |
1.27 |
1.55 |
1.87 |
2.51 |
Net cash reconciliationin million euros - rounded figures |
December 31, 2020 |
June 30, 2021 |
Cash and cash equivalents (1) |
+265.7 |
+450.0 |
Other current financial assets (2)31F20 |
- |
- |
Current borrowings (3)32F21 |
(77.2) |
(78.4) |
Non-current borrowings (4) |
(4.7) |
(4.9) |
Net Cash Position (1) + (2) – (3) – (4) |
183.9 |
366.7 |
Free Cash Flow reconciliationin million euros - rounded
figures |
December 31, 2020 |
June 30, 2021 |
Net cash from operating activities (1) |
+357.6 |
+134.0 |
Capital expenditure (2) |
(83.1) |
(30.3) |
Free Cash Flow before acquisition and disposals (1) - (2) |
274.5 |
103.7 |
SHARE BUYBACK
PROGRAM
SOCIETE BIC |
Number of sharesacquired |
Average weighted price (in €) |
Amount(in M€) |
March 2021 |
62,600 |
50.46 |
3.2 |
April 2021 |
77,005 |
53.35 |
4.1 |
May 2021 |
65,770 |
62.93 |
4.1 |
June 2021 |
72,459 |
59.57 |
4.3 |
Total |
277,834 |
56.58 |
15.7 |
CAPITAL AND VOTING RIGHTS
As of June 30, 2021, the total number of issued
shares of SOCIÉTÉ BIC was 45,395,857 shares, representing:
- 66,774,710 voting rights,
- 66,255,030 voting rights excluding
shares without voting rights
Total number of treasury shares held at the end
of June 2021: 519,680.
GLOSSARY
- Constant currency
basis: constant currency figures are calculated by
translating the current year figures at prior year monthly average
exchange rates.
- Organic change or
Comparative basis: at constant currencies and constant
perimeter. Figures at constant perimeter exclude the impact of
acquisitions and/or disposals that occurred during the current year
and/or during the previous year, until their anniversary date. All
Net Sales category comments are made on a comparative basis.
Organic change excludes Argentina Net Sales for both 2019 and
2020.
- EBITDA: EBIT before
Depreciation and Amortization (excluding amortization of right of
use under IFRS 16 standard), and impairment.
- Adjusted EBIT:
adjusted means excluding normalized items.
- Adjusted EBIT margin:
adjusted EBIT as a percentage of Net Sales.
- Net Cash from operating
activities: Cash generated from principal activities of
the entity and other activities that are not investing or financing
activities.
- Free Cash Flow: Net
cash flow from operating activities less capital expenditures
(CAPEX). Free cash flow does not include acquisitions and proceeds
from the sale of businesses.
- Net cash position:
Cash and cash equivalents + Other current financial assets -
Current borrowings - Non-current borrowings (except financial
liabilities following IFRS 16 implementation)
SOCIETE BIC consolidated financial statements as of June 30,
2021, were approved by the Board of Directors on July 28, 2021. A
presentation related to this announcement is also available on the
BIC website (www.bic.com ). The Group statutory auditors limited
review procedures have been completed. Their review report is
currently being issued. This document contains forward-looking
statements. Although BIC believes its expectations are based on
reasonable assumptions, these statements are subject to many risks
and uncertainties. A description of the risks borne by BIC appears
in the section, "Risks Management" in BIC's 2020 Universal
Registration Document filed with the French financial markets
authority (AMF) on April 1, 2021.
ABOUT BIC
A world leader in stationery, lighters and shavers, BIC brings
simplicity and joy to everyday life. For more than 75 years, the
Company has honored the tradition of providing high-quality,
affordable, essential products to consumers everywhere. Through
this unwavering dedication, BIC has become one of the most
recognized brands and is a trademark registered worldwide. Today,
BIC products are sold in more than 160 countries around the world
and feature iconic brands such as BIC Kids™, BIC FlexTM, BodyMark
by BICTM, Cello®, Djeep, Lucky Stationery, Rocketbook, Soleil®,
Tipp-Ex®, Us. TM, Wite-Out® and more. In 2020, BIC Net Sales were
1,627.9 million euros. The Company is listed on ""Euronext Paris","
is part of the SBF120 and CAC Mid 60 indexes and is recognized for
its commitment to sustainable development and education. It
received an A- Leadership score from CDP. For more, visit
www.bic.com or follow us on LinkedIn, Instagram, Twitter, or
YouTube.
CONTACT
Sophie
Palliez-CapianVP, Corporate Stakeholder Engagement+33 1 45 19 55
28+ 33 87 89 3351Sophie.palliez@bicworld.com Michèle VenturaSenior
Manager, Investor Relations+ 33 1 45 19 52
98Michele.ventura@bicworld.com |
Albane de La Tour
d’Artaise Senior Manager, Institutional Press Relations+ 33 1 45 19
51 51+ 33 7 85 88 19 48Albane.DeLaTourDArtaise@bicworld.com
Isabelle de Segonzac Image 7+ 33 6 89 87 61
39isegonzac@image7.fr |
2021 AGENDA
ALL DATES TO BE CONFIRMED
3rd Quarter 2021
Results |
October 26, 2021 |
FY 2021
Results |
February 15, 2022 |
1st Quarter 2022 Results |
April 26, 2022 |
2022 Annual General Meeting |
18 May, 2022 |
First Half 2022 Results |
August 2, 2022 |
3rd Quarter 2022
Results |
October 27, 2022 |
1 See page 9 for main market assumptions.2 this excludes the
Argentinian Peso.3 IRI data Pocket Lighters + Utility Lighters
27JUN20214 Excluding in 2020 under absorption of fixed costs due to
COVID-19 pandemic for the Gross Profit and excluding restructuring
costs, Cello impairment and non-recurring items mostly commercial
force underactivity for the OPEX and other expenses5 Excluding 2021
Clichy Headquarters net capital gain, 2021 Pimaco divestiture, 2020
& 2021 restructuring costs & Argentina hyperinflationary
accounting6 Including-12.6 million euros in H1 2020 and +0.8
million euros in H1 2021 related to assets payable change 7 Haco
Industries Ltd in 2020 & 2021, Rocketbook and Djeep in 20218
Nielsen YTD June (03-JUL-21)9 Nielsen YTD, May 2110 IRI YTD May
2111 IRI data YTD June 202112 IRI data YTD June 202113 IRI YTD June
202114 Nielsen YTD May 202115 Euromonitor and BIC estimates 16
Forex impact excluding Argentinian Peso (ARS)17 Mainly acquisitions
of Djeep and Rocketbook18 See glossary 19 Including -12.6 million
euros in H1 2020 and +0.8 million euros in H1 2021 related to
assets payable change 20 In the balance sheet at December 31, 2020
and 30 June 2021, the “Other current financial assets and
derivative instruments” line also includes respectively 26.1M€ and
14.1M€ worth of derivative instruments.21 Excluding financial
liabilities following IFRS16 implementation
- BIC_Q2 2021_Results_PressRelease
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