BIC: THIRD QUARTER & NINE MONTHS 2021 RESULTS
BIC THIRD
QUARTER & NINE
MONTHS
2021
RESULTS
Clichy,
France, October
26th,
2021
Q3 results
exceeding our
expectations, 9 months Net Sales on a
comparative basis above 2019 levels in almost all
regions– Full
Year 2021
Net Sales guidance further
upgraded
- Mid-single digit growth in the U.S
pocket lighter market and solid performance in Latin America drove
the Flame for Life growth
- Human Expression
Net Sales led by double-digit increases in Europe, Latin America,
Middle-East & Africa and India, and outstanding performance
from our recent acquisitions (Rocketbook in the U.S and Lucky
Stationery in Nigeria)
- Blade Excellence
performance driven by Latin America. Double-digit Net Sales growth
of our added-value products.
Strong performance in e-commerce, with
all channels and regions contributing. Accelerated growth
in developing countries.
Adverse Raw Material price
increases offset by savings from the Invent the
Future transformation plan combined with
ongoing manufacturing
efficiencies
Sustained Free Cash Flow generation driven by solid Cash from
Operations
KEY FIGURESin million euros1 |
Q3 2020 |
Q3 2021 |
9M 2020 |
9M 2021 |
Group Net Sales |
441.9 |
478.4 |
1 217.8 |
1 395.1 |
Change as reported |
(9.4)% |
+8.2% |
(15.9)% |
+14.6% |
Change on a comparative basis |
(3.5)% |
+5.0% |
(13.2)% |
+16.1% |
Change on a constant currency basis |
(2.6)% |
+8.5% |
(12.6)% |
+19.8% |
EBIT Margin |
24.5% |
17.2% |
10.9% |
29.8% |
Adjusted EBIT Margin |
18.9% |
17.2% |
14.5% |
17.8% |
EPS (in euros) |
1.51 |
1.28 |
2.00 |
6.40 |
Adjusted EPS (in euros) |
1.05 |
1.28 |
2.92 |
3.80 |
Free Cash Flow before acquisitions and
disposals |
131.4 |
128.6 |
173.7 |
232.3 |
Net Cash Position |
128.1 |
475.4 |
128.1 |
475.4 |
“We delivered impressive results in the third quarter and
exceeded our own expectations in a challenging trading environment,
despite an unfavorable comparable basis. These strong results are
the continued tangible outcomes of the organizational and strategic
choices we made 18 months ago with our Invent the Future and
Horizon Plans. Our performance reflects a focus on operational
excellence and cost efficiency, and the relentless determination
and energy of our teams around the world. As we move towards 2022
with strong momentum, we will continue to focus on what we can
control and build on our strengths to deliver our Horizon
trajectory of mid-single digit Net Sales growth.”
Gonzalve Bich, Chief Executive
Officer
2021 Outlook (based on current market
assumptions2)
Given the solid nine months performance and current market
assumptions, we upgrade our FY 2021 forecast and now expect
to deliver above 14% Net
Sales growth at constant currencies.
The fourth quarter will be affected by raw materials and freight
& distribution cost increases. For the Full-Year, overall input
costs inflation will be more than offset by improved manufacturing
efficiencies, the savings from our Invent the Future plan, and
tight management of expenses. Despite the building of strategic
inventories to protect supply and delivery for 2022, our goal for
Full-Year 2021 Free Cash Flow remains above 200 million
euros.
9M 2021 HIGHLIGHTS
NET
SALES BY GEOGRAPHY in million euros |
9M 2020 |
9M 2021 |
% As reported |
% at Constant Currencies |
% On a comparative basis |
Group |
1 217.8 |
1 395.1 |
+14.6 % |
+19.8 % |
+16.1 % |
Europe |
404.9 |
447.5 |
+10.5 % |
+11.7 % |
+9.6 % |
North America |
539.5 |
601.1 |
+11.4 % |
+18.3 % |
+12.3 % |
Latin America |
151.0 |
198.5 |
+31.5 % |
+44.7 % |
+42.3 % |
Middle East and Africa |
58.5 |
82.5 |
+41.0 % |
+44.3 % |
+44.3 % |
Asia and Oceania (including India) |
63.9 |
65.5 |
+2.6 % |
+2.4 % |
+8.0 % |
9M 2021
Net Sales increased
19.8% at constant currencies. The
unfavorable impact of currency fluctuations (–4.5 points) was
mainly due to the decrease of the US Dollar against the Euro3.
Excluding the impact of acquisitions and divestitures, growth on a
comparative basis was 16.1%.
9M organic growth continued to be fueled by the Flame
for Life division. All key regions contributed to the
solid performance, particularly North America and Latin America,
which accounted for approximately 9 points through Year-to-Date
Group Net Sales growth on a comparative basis. In the US, the
Pocket Lighters market grew 4.5% in value4, and BIC outperformed in
both volume and value (+1.2 points market share gains), boosted by
distribution gains, the success of the new EZ Reach Utility Pocket
Lighter and H1 2021 price increases.
In Human
Expression, Europe led the growth,
followed by Latin America, the Middle East and Africa and India,
while the US continued to be affected by supply chain constraints.
Our recent acquisitions, Rocketbook (Digital Writing - US) and
Lucky Stationery (Core Writing Instrument - Nigeria) showed
outstanding performance, with 70% Net Sales growth for Rocketbook
and a robust Back-to-School season for Lucky Stationery. Overall,
the 2021 Back-to-School season (sell-out) was solid, driven by a
rebound in consumption, and the re-opening of schools. BIC
maintained or gained market share in France, the UK, and Mexico,
and underperformed in the US due to product availability
issues.
A strong performance in Latin America, driven by the success of
BIC trade-up strategy towards 3-blade products fueled the
Blade Excellence division. Consistent with our
Horizon plan, high-value added products led the overall growth,
with BIC 5-blade products up more than 30% Year-to-Date.
E-commerce (excluding
Rocketbook) delivered a robust +25%
growth, well balanced between Pure Player channels (+23%),
Omniretailers (+27%), and Direct-to-Consumer (+28%). Combined sales
in developing regions more than doubled compared to last year, and
BIC grew market share in almost all measured markets and
products.
We achieved
more than 20
million euros
incremental benefit from our
Invent the Future plan in 9M, of which approximately 7 million
euros in direct and indirect procurement. We continued to be
affected by the increase in Raw Materials and Packaging prices, and
the disruption of worldwide Sea Freight. BIC's raw materials market
prices continued to rise in Q3, with plastic up +60% and metals
+37% compared to 2020 average. The unavailability of containers and
the port congestion resulted in a surge of sea freight costs (+60%
in Q3), coupled with increased port to port lead-times. The current
market conditions will impact Full Year 2021 margins.
9M 2021 Free Cash
Flow before acquisitions and disposals
totaled 232.3 million euros, including 44.3 million euros of CAPEX.
Net Cash Position was 475.4 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 |
Q3 2020 |
Q3 2021 |
9M 2020 |
9M 2021 |
Net Sales |
441.9 |
478.4 |
1 217.8 |
1 395.1 |
Gross Profit |
214.0 |
242.9 |
585.2 |
716.7 |
Gross Profit margin |
48.4% |
50.8% |
48.1% |
51.4% |
EBITDA |
181.0 |
136.7 |
247.3 |
470.2 |
EBIT |
108.3 |
82.5 |
132.3 |
415.1 |
EBIT margin |
24.5% |
17.2% |
10.9% |
29.8% |
Non-recurring items |
(25.0) |
0.0 |
43.9 |
(166.5) |
Adjusted EBIT |
83.3 |
82.5 |
176.2 |
248.6 |
Adjusted EBIT margin |
18.9% |
17.2% |
14.5% |
17.8% |
9M Gross Profit margin
increased by 3.3 points to 51.4% compared to 48.1% in 9M 2020.
Excluding 2020 under-absorption of fixed costs due to the COVID-19
pandemic, the Gross Profit margin increased by 0.9 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
partially offset by adverse Forex from Latin American currencies
against the US Dollar.
9M 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.
9M 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 |
Q3 2021vs. Q3 2020 |
9M 2021vs. 9M 2020 |
|
+0.5 |
+2.6 |
(0.4) |
+0.9 |
|
+1.2 |
(0.5) |
(0.4) |
+0.1 |
|
+5.9 |
+2.7 |
(0.9) |
+2.3 |
Total change in Adjusted EBIT margin |
+7.6 |
+4.8 |
(1.7) |
+3.3 |
NET INCOME AND EPS
in million euros |
Q3 2020 |
Q3 2021 |
9M 2020 |
9M 2021 |
EBIT |
108.3 |
82.5 |
132.3 |
415.1 |
Finance revenue/costs |
(2.8) |
(0.7) |
7.1 |
(4.7) |
Income before Tax |
105.5 |
81.9 |
139.3 |
410.4 |
Net Income Group share |
68.0 |
57.3 |
90.1 |
287.5 |
Adjusted Net Income Group Share7 |
47.3 |
57.6 |
131.2 |
170.4 |
Adjusted EPS Group Share (in euros) |
1.05 |
1.28 |
2.92 |
3.80 |
EPS Group Share (in euros) |
1.51 |
1.28 |
2.00 |
6.40 |
9M 2021
finance revenue decrease is due to 2020's strong
favorable impact of the fair value adjustments to financial assets
denominated in US Dollar (against the Brazilian Real and Mexican
Peso).9M 2021
effective tax rate was 29.9% vs.
35.3% in 9M 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 |
+231.9 |
+276.6 |
- Of which operating cash flow
|
+220.8 |
+336.3 |
- Of which change in working capital and others
|
+11.1 |
(59.7) |
CAPEX8 |
(58.2) |
(44.3) |
Dividend payment |
(110.2) |
(80.9) |
Share buyback program |
(7.4) |
(31.2) |
Net cash from the liquidity contract |
(0.1) |
+0.5 |
Proceed from the sale of Clichy Headquarters |
- |
+173.9 |
Proceed from Pimaco divestiture |
- |
+3.8 |
Acquisitions9 |
(37.4) |
(7.2) |
Other items |
(37.4) |
+0.3 |
Net Cash position (end of period –
September) |
+128.1 |
+475.4 |
At the end of September,
the Group's Net Cash position was 475.4 million
euros, positively impacted by the sale of Clichy Headquarters and
of Pimaco. The tax related to the headquarter 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 9M Net Sales
and increased inventory.
SHAREHOLDERS'
REMUNERATION
- Ordinary dividend
of 1.80
euros per share paid in June 2021.
- 31.2
million euros in share buy-backs was completed by
SOCIÉTÉ BIC at the end of September 2021. 555,901 shares were
purchased at an average price of 56.20 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 |
Q3 2020 |
Q3 2021 |
9M 2020 |
9M 2021 |
Net Sales |
161.3 |
197.5 |
455.1 |
530.7 |
Change as reported vs. prior year |
(21.1)% |
+22.4% |
(24.8)% |
+16.6% |
Change on a comparative basis vs. prior year |
(17.8)% |
+15.9% |
(23.6)% |
+13.5% |
Change at constant currency vs. prior year |
(17.4)% |
+22.8% |
(22.8)% |
+20.4% |
Adjusted EBIT |
14.8 |
12.7 |
33.8 |
40.3 |
Adjusted EBIT Margin |
9.2% |
6.5% |
7.4% |
7.6% |
EBIT |
18.4 |
12.7 |
(16.4) |
41.9 |
EBIT Margin |
11.4% |
6.5% |
(3.6)% |
7.9% |
Growth in Human Expression was driven by a
strong performance in Europe, the Middle East and Africa, Latin
America and India, and by our recent acquisitions (Rocketbook in
the U.S and Lucky Stationery in Nigeria).
In Europe, the French Stationery market grew
3.1% in value10 and almost recovered its 2019 levels. The BIC®
Brand maintained its leadership positions during the Back-to-School
season, driven by a strong performance in the Ball Pen segment. In
the UK, the market grew +2.2% in value11, driven by coloring, and
BIC gained 2.1% market share in value during Back-to-School, thanks
to incremental listings. Consistent with our Horizon plan, we
strengthened our presence in the growing Art and Creative segments
thanks to our renewed BIC Intensity marker line.
In North
America, the Stationery market rebounded, increasing 16.8%
in value 12 with the Gel segment as the main growth engine. BIC
lost 1.1 points market share affected by product availability
constraints. During the Back-to-School season, the market increased
by almost 30% compared to the same period last year and grew
low-single-digit vs. two years ago. Our recent innovations such as
BIC® Prevaguard, and the eco-friendly BIC® ReVolution range
performed well during the season.
In Middle East and
Africa, performance was boosted by a
robust Back-to-School season in Morocco, Kenya and Nigeria,
supporting BIC's efficient route-to-market strategy in the
region.
In Latin America, the market bounced back in
Mexico during Back-to-School season, boosted by a return to
classrooms which led to a double-digit growth in value compared to
prior year. BIC successfully gained 1.9 pts during the season
driven by Ball Pen, Coloring and Highlighter. Year-to-Date market
trends in value turned positive at the end of September (+6.5% in
value). In Brazil13, BIC continued to outperform a
declining market, fueled by Coloring and Pens segments.
In India, Cello Net Sales grew double-digit,
driven by improved domestic market conditions and a solid
performance in e-commerce.
9M 2021 Human Expression division adjusted EBIT
margin was 7.6% compared to 7.4% in 2020. The Net Sales
increase (including Rocketbook) and the manufacturing and raw
material procurement efficiencies were partly offset by unfavorable
Forex (from Latin American currencies against the US Dollar) and
higher freight and distribution costs. Q3 2021 adjusted
EBIT margin was 6.5% compared to 9.2% in 2020. This
decline was driven by an increase in Raw Material costs and in
Freight and Distribution, partly offset by higher Net Sales
(including Rocketbook).
FLAME FOR LIFE (LIGHTERS)
in million euros |
Q3 2020 |
Q3 2021 |
9M 2020 |
9M 2021 |
Net Sales |
171.1 |
170.7 |
439.3 |
538.1 |
Change as reported vs. prior year |
+5.7% |
(0.2)% |
(8.8)% |
+22.5% |
Change on a comparative basis vs. prior year |
+13.1% |
(2.1)% |
(5.4)% |
+26.5% |
Change at constant currency vs. prior year |
+14.8% |
+0.1% |
(4.7)% |
+29.2% |
Adjusted EBIT |
65.6 |
68.6 |
152.9 |
214.2 |
Adjusted EBIT Margin |
38.4% |
40.2% |
34.8% |
39.8% |
EBIT |
80.6 |
68.6 |
164.6 |
212.4 |
EBIT Margin |
47.1% |
40.2% |
37.5% |
39.5% |
The Flame for Life division performance was
driven by improved market conditions in US Pocket Lighters since
the beginning of the year, as well as robust growth in Latin
America.
In Europe, Net Sales were 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.
In the US14, the Pocket
Lighters market declined 3.7% in volume and grew 4.5 % in value
driven by positive overall market dynamics and unexpected consumer
demand at the beginning of the year. BIC gained share in both
volume (+2.4 points) and value (+1.2 points), fueled by further
distribution gains in the convenience channel, positive pricing,
and our Revenue Growth Management strategy. Growth was also driven
by the continued success of our new EZ Reach lighter, reaching 4.8%
market share in value in Q3. This performance was boosted by the
successful “Pass it” advertising campaign featuring Snoop Dogg and
Martha Stewart, which drew more than 5.6 billion total media
impressions in the US. The Utility lighter market grew 3.4% in
value compared to a +27.4% growth in 2020. BIC slightly
underperformed year-to-date (+2.0% in value), due to lack of
product availability resulting from sea freight challenges, and
longer lead times. However, BIC remains the leader in this segment,
with over 50% market share in value.
In Latin America, Net Sales
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 due to adverse currency fluctuations (devaluation of the
Brazilian Real). In Mexico, Net Sales were fueled by strong
sell-out and distribution gains in all regions.
9M 2021 Flame for Life division adjusted EBIT
margin was 39.8% compared to 34.8% in 2020, boosted 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. Q3 2021 adjusted
EBIT margin was 40.2% compared to 38.4% in 2020, fueled by
higher Gross Profit, driven by favorable fixed cost absorption and
price increases in the US, partly offset by an increase in Brand
Support and higher Freight and Distribution costs.
BLADE EXCELLENCE
(SHAVERS)
in million euros |
Q3 2020 |
Q3 2021 |
9M 2020 |
9M 2021 |
Net Sales |
102.9 |
104.6 |
303.6 |
304.9 |
Change as reported vs. prior year |
(10.4)% |
+1.6% |
(10.6)% |
+0.4% |
Change on a comparative basis vs. prior year |
(1.2)% |
+1.1% |
(6.2)% |
+5.7% |
Change at constant currency vs. prior year |
(0.8)% |
+1.9% |
(5.6)% |
+6.2% |
Adjusted EBIT |
17.5 |
18.5 |
39.4 |
50.9 |
Adjusted EBIT Margin |
17.0% |
17.7% |
13.0% |
16.7% |
EBIT |
25.6 |
18.5 |
42.9 |
50.8 |
EBIT Margin |
24.8% |
17.7% |
14.1% |
16.7% |
The Blade Excellence division's overall
performance was driven by strong results in Latin America as well
as the success of our added-value products such as our 5-blade
shavers’ range, despite a challenging competitive environment in
key geographies.
In Europe, Net Sales continued to be affected
by challenging markets trends, notably in France, the UK and Italy
and product availability issues in several countries, partially
offset by solid growth in Eastern Europe.
In the US, the in-store
Disposable market declined 1.5% in value15 with aggressive
promotional activity and new products launched by competition since
the beginning of 2021, including value positioning items. BIC lost
2.2 points market share, -3.5 points in the female segment mostly
in 3-blade and -1.7 points in the male segment. In line with the
Horizon strategy, we continued to focus on premium segments and
successfully gained +0.7 points in value in the 4 and 5 blade
segments and pursued e-commerce growth with a +0.7 points15 value
share gain.
In Latin America, our trade-up
strategy continued to drive overall performance in both Brazil and
Mexico. Brazil's market grew 2.0% in value16, and we maintained our
market share. We gained share in the 3-blade segment, driven by
both male and female products, including our flagship BIC® Soleil
range. In Mexico, BIC lost 0.4 points in share17, in a growing
market, but gained successfully in the female segment with +2.3
points for the BIC® Soleil range.
9M 2021 Blade Excellence division adjusted EBIT
margin improved to 16.7% compared to 13.0% in 2020,
impacted positively by operating leverage from Net Sales growth,
manufacturing and raw material procurement efficiencies, and more
effective promotional activities and Brand Support. Q3 2021
adjusted EBIT margin was 17.7% compared to 17.0% in
2020.
OTHER PRODUCTS
in million euros |
Q3 2020 |
Q3 2021 |
9M 2020 |
9M 2021 |
Net Sales |
6.6 |
5.7 |
19.7 |
21.3 |
Change as reported |
(3.8)% |
(14.9) % |
(10.9)% |
+8.1 % |
Change on a comparative basis |
(2.1)% |
(15.5) % |
(9.9)% |
+7.7 % |
Change at constant currency |
(2.2)% |
(15.5) % |
(10.0)% |
+7.7 % |
Adjusted EBIT |
(1.4) |
(1.0) |
(2.5) |
(3.9) |
EBIT |
(1.8) |
(1.0) |
(5.3) |
(4.0) |
UNALLOCATED COSTS
in million euros |
Q3 2020 |
Q3 2021 |
9M 2020 |
9M 2021 |
Adjusted EBIT |
(13.2) |
(16.3) |
(47.4) |
(52.8) |
EBIT |
(14.5) |
(16.3) |
(53.4) |
114.0 |
9M 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 during the
first nine months, 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 the BIC® BAMBOO shaver. 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 comes
in 100% recyclable cardboard packaging made of 50% recycled paper,
including refills in 95% recycled paper packaging. Boosted by its
success online, this innovative product has been praised by
Scandinavian retailers, and is now available in-stores.
- During these first nine months, we introduced our new “SD
Hybrid” shaver range in Europe. Made with recycled plastic handles,
this range of innovative shavers with recyclable packaging is
currently being deployed in North America and Latin America.
- In May, 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), meeting the highest requirements
for environmental performance and energy consumption
efficiency.
- On October 19, we announced the
development with Avient of a new recycled material that will be
incorporated into the handle of the future refillable BIC Soleil
Click 5 shaver, with a launch planned in the spring of 2022. By
using this new material, the handle will be made of more than 40%
recycled material.
APPENDIX
2021 OUTLOOK ASSUMPTIONS
Our 2021 outlook is based on the following market
assumptions26F18:
Market trends
(in value):
- Europe: Flat to slight increase in Stationery,
slight increase in Lighters, high-single-digit decrease in
Shavers
- North America:
- High-single digit increase in US Stationery market,
- Low-single digit to mid-single digit increase for total US
pocket Lighter market,
- Low-single digit decrease in total US one-piece Shaver
market,
- Latin America: high-single to double-digit
decrease in Stationery Brazil, flat in Stationery Mexico;
mid-single digit increase in Lighters and low to mid-single-digit
increase in Shavers,
- India: high-single digit to low-double 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 80 million euros in CAPEX
Currency: 2021 USD-Euro hedging rate: 1.13
Q3 NET SALES BY GEOGRAPHY in million
euros |
Q3 2020 |
Q3 2021 |
% As reported |
% at constant currencies |
% On a comparative basis |
Group |
441.9 |
478.4 |
+8.2 % |
+8.5 % |
+5.0 % |
Europe |
147.2 |
155.4 |
+5.6 % |
+5.7 % |
+4.3 % |
North America |
196.3 |
194.7 |
(0.8) % |
+0.2 % |
(5.5) % |
Latin America |
56.9 |
72.6 |
+27.5 % |
+27.7 % |
+23.0 % |
Middle East and Africa |
19.5 |
31.3 |
+60.4 % |
+57.4 % |
+57.4 % |
Asia and Oceania (including India) |
21.9 |
24.3 |
+10.7 % |
+9.8 % |
+14.4 % |
9M NET SALES BY GEOGRAPHY in million
euros |
9M 2020 |
9M 2021 |
% As reported |
% at constant currencies |
% On a comparative basis |
Group |
1 217.8 |
1 395.1 |
+14.6 % |
+19.8 % |
+16.1 % |
Europe |
404.9 |
447.5 |
+10.5 % |
+11.7 % |
+9.6 % |
North America |
539.5 |
601.1 |
+11.4 % |
+18.3 % |
+12.3 % |
Latin America |
151.0 |
198.5 |
+31.5 % |
+44.7 % |
+42.3 % |
Middle East and Africa |
58.5 |
82.5 |
+41.0 % |
+44.3 % |
+44.3 % |
Asia and Oceania (including India) |
63.9 |
65.5 |
+2.6 % |
+2.4 % |
+8.0 % |
Q3 NET SALES BY CATEGORY in million euros |
Q3 2020 |
Q3 2021 |
Change as reported |
FX
impact19(in points) |
Change in Perimeter20(in
points) |
Argentina impact21(in
points) |
Change on a Comparativebasis |
Group |
441.9 |
478.4 |
+8.2 % |
+0.2 |
+2.5 |
+0.5 |
+5.0 % |
Stationery- Human Expression |
161.3 |
197.5 |
+22.4 % |
+0.2 |
+5.9 |
+0.4 |
+15.9 % |
Lighters- Flame for Life |
171.1 |
170.7 |
(0.2) % |
+0.2 |
+1.0 |
+0.7 |
(2.1) % |
Shavers- Blade Excellence |
102.9 |
104.6 |
+1.6 % |
+0.3 |
(0.2) |
+0.4 |
+1.1 % |
Other Products |
6.6 |
5.7 |
(14.9) % |
+0.6 |
- |
- |
(15.5) % |
9M NET SALES BY CATEGORY in million euros |
9M 2020 |
9M 2021 |
Change as reported |
FX impact(in points) |
Change in Perimeter(in points) |
Argentina impact(in points) |
Change on a Comparativebasis |
Group |
1 217.8 |
1 395.1 |
+14.6 % |
(4.5) |
+2.8 |
+0.2 |
+16.1 % |
Stationery- Human Expression |
455.1 |
530.7 |
+16.6 % |
(3.1) |
+6.3 |
(0.1) |
+13.5 % |
Lighters- Flame for Life |
439.3 |
538.1 |
+22.5 % |
(6.0) |
+1.6 |
+0.4 |
+26.5 % |
Shavers- Blade Excellence |
303.6 |
304.9 |
+0.4 % |
(5.0) |
(0.3) |
- |
+5.7 % |
Other Products |
19.7 |
21.3 |
+8.1 % |
+0.4 |
- |
- |
+7.7 % |
IMPACT OF CHANGE IN PERIMETER AND CURRENCY FLUCTUATIONS ON NET
SALES (EXCLUDES ARS) (in %) |
Q3 2020 |
Q3 2021 |
9M 2020 |
9M 2021 |
Perimeter |
+0.5 |
+2.5 |
+0.1 |
+2.8 |
Currencies |
(6.4) |
+0.2 |
(2.8) |
(4.5) |
Of which USD |
(1.8) |
(0.6) |
(0.1) |
(3.2) |
Of which BRL |
(2.5) |
+0.1 |
(1.6) |
(0.9) |
Of which MXN |
(0.6) |
+0.4 |
(0.4) |
+0.1 |
Of which AUD |
(0.0) |
+0.0 |
(0.1) |
+0.1 |
Of which ZAR |
(0.2) |
+0.2 |
(0.1) |
+0.1 |
Of which INR |
(0.1) |
(0.0) |
(0.0) |
(0.1) |
Of which RUB and UAH |
(0.4) |
(0.0) |
(0.2) |
(0.3) |
EBIT BY CATEGORY in million euros |
Q3 2020 |
Q3 2021 |
9M 2020 |
9M 2021 |
Group |
108.3 |
82.5 |
132.3 |
415.1 |
Margin |
24.5 % |
17.2 % |
10.9 % |
29.8 % |
Stationery- Human Expression |
18.4 |
12.7 |
(16.4) |
41.9 |
Margin |
11.4 % |
6.5 % |
(3.6) % |
7.9 % |
Lighters- Flame for Life |
80.6 |
68.6 |
164.6 |
212.4 |
Margin |
47.1 % |
40.2 % |
37.5 % |
39.5 % |
Shavers- Blade Excellence |
25.6 |
18.5 |
42.9 |
50.8 |
Margin |
24.8 % |
17.7 % |
14.1 % |
16.7 % |
Other Products |
(1.8) |
(1.0) |
(5.3) |
(4.0) |
Unallocated costs |
(14.5) |
(16.3) |
(53.4) |
114.0 |
ADJUSTED EBIT BY CATEGORY in million euros |
Q3 2020 |
Q3 2021 |
9M 2020 |
9M 2021 |
Group |
83.3 |
82.5 |
176.2 |
248.6 |
Margin |
18.9 % |
17.2 % |
14.5 % |
17.8 % |
Stationery- Human Expression |
14.8 |
12.7 |
33.8 |
40.3 |
Margin |
9.2 % |
6.5 % |
7.4 % |
7.6 % |
Lighters- Flame for Life |
65.6 |
68.6 |
152.9 |
214.2 |
Margin |
38.4 % |
40.2 % |
34.8 % |
39.8 % |
Shavers- Blade Excellence |
17.5 |
18.5 |
39.4 |
50.9 |
Margin |
17.0 % |
17.7 % |
13.0 % |
16.7 % |
Other Products |
(1.4) |
(1.0) |
(2.5) |
(3.9) |
Unallocated costs |
(13.2) |
(16.3) |
(47.4) |
(52.8) |
CONDENSED PROFIT AND LOSS in million euros |
Q3 2020 |
Q3 2021 |
9M 2020 |
9M 2021 |
Net Sales |
441.9 |
478.4 |
1,217.8 |
1 395.1 |
Cost of goods |
227.9 |
235.5 |
632.6 |
678.4 |
Gross profit |
214.0 |
242.9 |
585.2 |
716.7 |
Administrative & net other operating expenses/ (gain) |
105.7 |
160.4 |
452.9 |
301.6 |
EBIT |
108.3 |
82.5 |
132.3 |
415.1 |
Finance revenue/costs |
(2.8) |
(0.7) |
7.1 |
(4.7) |
Income before tax |
105.5 |
81.9 |
139.3 |
410.4 |
Income tax expense |
(37.4) |
(24.5) |
(49.2) |
(122.9) |
Net Income Group Share |
68.0 |
57.3 |
90.1 |
287.5 |
Earnings per Share Group Share (in euros) |
1.51 |
1.28 |
2.00 |
6.40 |
Average number of shares outstanding (net of treasury shares) |
44,973,055 |
44,890,535 |
44,973,055 |
44,890,535 |
CONDENSED BALANCE SHEET in million euros |
September 30, 2020 |
September 30, 2021 |
ASSETS |
Non-current assets |
1,059.9 |
1,044.5 |
Current assets |
1,140.4 |
1,479.3 |
TOTAL ASSETS |
2,200.3 |
2,523.8 |
LIABILITIES & SHAREHOLDERS' EQUITY |
Shareholders’ equity |
1,434.5 |
1,682.6 |
Non-current liabilities |
266.7 |
223.3 |
Current liabilities |
499.1 |
617.9 |
TOTAL LIABILITIES & SHAREHOLDERS’ EQUITY |
2,200.3 |
2,523.8 |
RECONCILIATION WITH ALTERNATIVE PERFORMANCE
MEASURES
ADJUSTED EBIT RECONCILIATIONin million euros |
Q3 2020 |
Q3 2021 |
9M 2020 |
9M 2021 |
EBIT |
108.3 |
82.5 |
132.3 |
415.1 |
Restructuring costs (Transformation plan) and Ecuador factory
closure in in Q2 2020 and LAM commercial operations restructuring
in Q3 2020 |
+6.1 |
- |
+13.9 |
4.2 |
Cello impairment |
- |
- |
+41.7 |
- |
Some Expenses related to the COVID-19 epidemic mainly under
absorption of fixed costs |
+13.0 |
- |
+32.4 |
- |
Favorable Pensions adjustment in the U.S. |
(44.1) |
- |
(44.1) |
- |
Clichy Headquarters sales capital gain |
- |
- |
- |
(167.7) |
Pimaco divestiture capital gain |
- |
- |
- |
(3.0) |
Adjusted EBIT |
83.3 |
82.5 |
176.2 |
248.6 |
ADJUSTED EPS RECONCILATIONin million euros |
Q3 2020 |
Q3 2021 |
9M 2020 |
9M 2021 |
EPS |
1.51 |
1.28 |
2.00 |
6.40 |
Restructuring costs (Transformation plan) and Ecuador factory
closure in in Q2 2020 and LAM commercial operations restructuring
in Q3 2020 |
+0.10 |
- |
+0.22 |
+0.07 |
Cello impairment |
- |
- |
+0.93 |
- |
Some Expenses related to the COVID-19 epidemic mainly under
absorption of fixed costs |
+0.20 |
- |
+0.51 |
- |
Argentina hyperinflationary accounting (IAS29) |
+0.01 |
- |
+0.03 |
+0.04 |
Favorable Pensions adjustment in the U.S. |
(0.77) |
- |
(0.77) |
- |
Clichy Headquarters sales capital gain |
- |
- |
- |
(2.67) |
Pimaco divestiture capital gain |
- |
- |
- |
(0.04) |
Adjusted EPS |
1.05 |
1.28 |
2.92 |
3.80 |
Free Cash Flow reconciliationin million euros - rounded
figures |
December 31, 2020 |
September 30, 2021 |
Net cash from operating activities (1) |
+357.6 |
+276.6 |
Capital expenditure (2) |
(83.1) |
(44.3) |
Free Cash Flow before acquisition and disposals (1) - (2) |
274.5 |
232.3 |
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 |
July 2021 |
85,175 |
56.76 |
4.8 |
August 2021 |
82,975 |
57.11 |
4.8 |
September 2021 |
109,917 |
54.10 |
5.9 |
Total |
555,901 |
56.20 |
31.2 |
CAPITAL AND VOTING RIGHTS
As of September 30, 2021, the total number of issued shares of
SOCIÉTÉ BIC is 45,395,857 shares, representing:
- 66,744,760 voting rights,
- 65,929,685 voting rights excluding shares without voting
rights
Total number of treasury shares held at the end
of September 2021: 815,075.
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 2020 and
2021.
- 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 September
30, 2021, were approved by the Board of Directors on October 26,
2021. A presentation related to this announcement is also available
on the BIC website (www.bic.com ). 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 |
2021/2022
AGENDA
ALL DATES TO BE CONFIRMED
FY 2021
Results |
February 15, 2022 |
1st Quarter 2022 Results |
April 26, 2022 |
2022 Annual General Meeting |
18 May, 2022 |
1st Half
2022 Results |
August 2, 2022 |
3rd Quarter 2022
Results |
October 27, 2022 |
1 Unaudited figures2 See page 9 for main market assumptions.
3 this excludes the Argentinian Peso.4 IRI data - YTD September
20215 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 expenses6 Other expenses
include notably Freight & Distribution and R&D7 Excluding
2021 Clichy Headquarters net capital gain, 2021 Pimaco divestiture,
2020 & 2021 restructuring costs & Argentina
hyperinflationary accounting8 Including-12.6 million euros in 9M
2020 and +0.8 million euros in 9M 2021 related to assets payable
change 9 Haco Industries Ltd in 2020 & 2021, Rocketbook and
Djeep in 202110 IRI YTD August 2021 Modern trade only11 IRI YTD
September 2021 Modern trade only12 NPD YTD September 2021 with
Coloring13 Nielsen YTD, August 202114 For the US: IRI data YTD
September 2021 15 IRI YTD September 202116 Nielsen YTD August 2021
for both Brazil and Mexico data17 YTD AUG 2021 Nielsen18
Euromonitor and BIC estimates 19 Forex impact excluding Argentinian
Peso (ARS)20 Mainly acquisitions of Djeep and Rocketbook21 See
glossary
- BIC_9M-Q3 2021 results_Press Release
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