BIC: SECOND QUARTER & FIRST HALF 2022 RESULTS
Clichy – France - August 2nd, 2022
SECOND QUARTER
& FIRST HALF 2022
RESULTSExecution of Horizon Strategic Plan delivering
profitable growth in all divisionsFull-Year 2022 Net Sales Outlook
Upgraded
Strong continued momentum in all divisions – H1
Net Sales growing 15.5%
at Constant Currencies
- Human Expression:
+23% Back-to-School sell-in growth in the Northern Hemisphere
(Europe, North America, and Mexico), and high-double-digit growth
in Brazil and India
- Flame For
Life: +17% growth in
added-value products and double-digit growth in all key countries
powered by distribution gains and innovation
- Blade Excellence:
+13% growth in added-value one-piece and hybrid shavers and
increasing contribution of our B2B business BIC Blade-Tech (31% of
Blade Excellence's growth in H1)
- Market share
increased or maintained in 80% of the countries we operate in,
driven by efficient commercial execution and enhanced
consumer-centricity
Resilience to Input
Cost Inflation Headwinds driven by
favorable pricing and Net Sales operating leverage
Sustained Operating Cash Flow
(+275.6
million euros): Working Capital impacted
by the seasonality of Account Receivables (Back-to-School sell-in)
and the negative impact of inflation on Inventories (40 million
euros at the end of June)
H1 2022 KEY FIGURES:
- Net Sales:
1,127.2 M€; +15.5% at constant currencies
- EBIT: 197.7 M€
- adjusted EBIT: 202.9
M€
- adjusted EBIT
margin: 18.0%
- EPS: 3.15
€/ -38.5%
- adjusted EPS:
3.39 €/ +35.1%
- Free Cash Flow:
+22.4 M€
- Net Cash
Position (End of June): 229.9 M€.
“Our solid H1 results and continuing resilience to external
headwinds are testament to the power of our team worldwide. We
grew Net Sales double-digit across all three divisions and reached
record-high market share in the majority of our regions.”
said CEO, Gonzalve Bich. “With our Horizon Plan
guiding our growth strategies, we are fueling our consumer
obsession and commercial excellence, bringing to market trusted
brands and ingeniously simple product solutions. Equally, we
continue to invest in the design and manufacturing of innovations
that meet the rising demand for products that are better for the
consumer, and better for our planet. With our strong in-market
momentum, we will respond with agility and determination to
whatever challenge comes next, continuing our progress against
strategic priorities that drive accelerated profitable growth and
create sustainable value for all our stakeholders.”
2022 Outlook
Update
(based on current market
assumptions1F1)
We are updating our guidance and expect to grow Full-Year Net
Sales between 10% and 12% at constant currencies (previously
7%-9%), driven by volume increase and favorable pricing. All
divisions will contribute to organic growth in H2.
Input cost inflation is expected to have an impact of
approximately 100 million euros. Despite these inflation headwinds
and higher Brand Support & OPEX aimed at fueling growth, we
expect to grow FY 2022 adjusted EBIT in absolute terms, driven by
higher volumes, positive pricing, and additional savings. We
maintain our target of over 200 million euros in Free Cash
Flow.
Strong Growth Momentum
in all divisions
H1 2022 Group Net Sales increased 13.7% on a comparative basis,
15.5% at Constant Currencies, and 10.7% on a 12-month rolling
basis2. Growth was driven by volume increase, favorable mix, and
the successful implementation of price increases in all regions.
All divisions and regions contributed to H1 performance. We gained
or maintained market share in 80% of the countries we operate in,
including in all three divisions in Europe and the US.
In Human Expression, H1
Organic growth was driven by our Core Writing Instruments and
Coloring segments following robust Back-to-School shipments, and
efficient in-store execution. In the Northern Hemisphere (Europe,
North America, and Mexico), Back-to-School sell-in increased by
almost 20% in volume and 23% in value compared to the same period
last year. Countries hardest hit by the pandemic, such as Brazil,
South Africa, Nigeria, and India, continued to recover in Q2, with
high-double digit growth on a comparative basis, all now having
recovered 2019 levels.
Our added-value products (decorated and Utility Lighters, EZ
Reach, and Djeep) grew 17% in value and accounted for 38% of the
Flame For Life
H1 Net Sales. US Lighters contributed to 51% of the division’s
organic growth, boosted by distribution gains, innovation, positive
price and mix (all accounting for approximately 4.5 pts of the US
Lighters growth in H1), and catch-up of orders in Q1. BIC EZ Reach
reached a 5.5% market share in value, driven by increased
distribution, primarily in Convenience Stores.
In Blade Excellence, value-added products
continued to fuel the performance of our One-Piece and Hybrid
segments and grew 13% in H1. This was notably driven by the success
of the BIC Soleil Escape four-blade shaver in the US, which reached
a 2% share of the US women's One-Piece segment in less than six
months. BIC Blade-Tech B2B business continued to gather momentum
and contributed to 31% of the total Blade Excellence Year-to-Date
Net Sales growth.
Resilience to Input Cost Inflation Headwinds driven by
favorable pricing and Net Sales operating leverage
H1 2022 Gross Profit margin
decreased by 2.0
points to 49.7%.
The impact of input cost inflation (-5.3 pts compared to H1 2021
including Raw Materials, Air and Sea Freight and Electricity) and
unfavorable FX, mostly EUR/USD hedging rate (-0.7 pts) were
partially offset by favorable fixed cost absorption (+2.0 pts),
favorable pricing (+1.4 pts), and the positive
contribution of Inkbox (+0.3 pts). H1 2022
Adjusted EBIT
increased by
22.2%, and the
adjusted EBIT margin was
18.0%, almost
flat compared to H1
2021. Net Sales
operating leverage (+4.6 pts) more than offset the increase in
Brand Support (-1.1 pts), OPEX (-0.6 pts) and Inkbox impact (-0.9
pts).
Total input cost inflation
weighed 48 million euros on H1 adjusted EBIT. For the Full-Year, we
expect approximately 100 million euros negative impact, which
should be more than offset by volume increase, price adjustments,
and additional savings, and allow us to grow adjusted Full-Year
EBIT in absolute terms.
Operating Cash Flow reached
275.6 million
euros, fueled by strong business performance. The -175.3
million euros change in Net Current Working Capital was driven by
Trade and other Receivables (-138.8M€), as a result of strong Net
Sales growth, and by an increase in Inventory levels (-102.1M€, of
which 40 million euros input cost inflation from Raw Material,
Freight and Electricity).
H1 2022 Free Cash Flow before
acquisitions and disposals was +22.4 million euros.
The end of June Net Cash
position was 229.9 million euros and included (58.2)
million euros paid for the acquisition of Inkbox.
horizon strategic plan in action
The relentless execution of BIC's Horizon strategic plan drove
our robust performance in H1, as we pursue our journey towards
accelerated profitable growth.
Consumer-centricity and Innovation
Building on a rejuvenated R&D and innovation pipeline, we
continue to accelerate product launches supported by effective
Brand Support in all divisions. In Human Expression,
Intensity Color Change, our new
writing Felt Pen transforming everyday writing into a creative
opportunity, was launched in most geographies. Our BIC EZ
Reach Utility Pocket Lighter continued to gain
distribution in all channels, a proof point of relevant innovation
driving growth and creating value. In July, we launched our
BIC Ecolutions
Lighter in the US and France. This unique lighter was designed with
16% lower environmental impact compared to the classic BIC
Maxi. It will be gradually deployed in the rest of Europe
starting in September. BIC
Soleil Escape, our new female
razor offering a sensorial experience, was among the key drivers of
year-to-date Blade Excellence's performance in the US. The
BIC Bamboo shaver, with a Bamboo handle, reached
2.6% volume market share in Sweden in less than 10 months,
demonstrating the consumer relevance of products with clear
sustainability benefits.
E-commerce
E-commerce sales grew 14% in H1. Core e-commerce sales continued
to be driven by the Omniretailers channel and performance in
Developing Markets, with high double-digit growth in India and
Brazil. Our Shaver and Lighter businesses grew double-digit, driven
by North America and Brazil. In Stationery, we expect a solid
Back-to-School season driven by targeted Brand Support
investment.
Revenue Growth Management
We increased our Net Sales per SKU by 25% in H1 2022, driven by
Human Expression and Flame For Life momentum, coupled with a net
SKU reduction of 9%, as we continue to drive complexity reduction
across our portfolio.
New Businesses and External
Growth
Expanded Customer Base for BIC
Blade-Tech
Adding growth and profitability to the Blade Excellence division
and, more generally, to the Group, our B2B business, BIC
Blade-Tech, is ramping up quickly, driven by additional orders from
existing customers. We recently signed a third contract with an
Asian Brand. Shipments are expected to start before the end of this
year.
New capabilities in Skin
Creative
In line with our Horizon strategy to pivot our Stationery
business towards Human Expression and expand our Total Addressable
Markets to the fast-growing Creative Expression segment, we
acquired Tattly, a small, high-quality 2-4 days US based Decal
company. Tattly will help diversify BIC's offer in Skin
Creative, adding a recognized Decal Brand to BIC's
BodyMark temporary Marker and
Inkbox semi-permanent Tattoo. The Decal segment is
the largest segment of the Non-permanent Skin Creative market,
which is expected to reach 1.5 billion USD in 2030, growing 13%
annually.
Path to Sustainability
In May 2022, we announced our Greenhouse Gas (GHG) emission
reduction targets for 20303, accelerating our longstanding
commitment to sustainability while making GHG emissions reduction a
key component of BIC's long-term strategy. In line with the Paris
Agreement target requirements, we pledged to reduce 50% of our GHG
emissions for Scope 1 and 100% for Scope 2 by 2030. For Scope 3,
our goal is to reduce by 5% our GHG emissions by 2030, of which
-30% for the Flame for Life division.
At the end of June 2022, we reached more than 70% of reusable,
compostable or recyclable plastic in our Consumer packaging, on
track to achieve our 100% goal in 2025.
In June 2022, our headquarters in Clichy (France) were relocated
to a certified BREEAM (Building Research Establishment
Environmental Assessment Method) building, thus meeting the highest
requirements for environmental performance and energy consumption
efficiency.
Key Operational Figures
Group
in million euros |
Q2 2021 |
Q2 2022 |
H1 2021 |
H1 2022 |
Group Net Sales |
505.7 |
611.4 |
916.7 |
1,127.2 |
Change as reported |
+20.7% |
+20.9% |
+18.2% |
+23.0% |
Change on a comparative basis |
+23.9% |
+9.6% |
+22.5% |
+13.7% |
Change on a constant currency basis |
+26.8% |
+11.6% |
+26.2% |
+15.5% |
|
|
|
|
|
EBIT Margin |
20.8% |
16.3% |
36.3% |
17.5% |
Adjusted EBIT Margin |
20.9% |
16.5% |
18.1% |
18.0% |
|
|
|
|
|
EPS (in euros) |
1.53 |
1.62 |
5.12 |
3.15 |
Adjusted EPS (in euros) |
1.55 |
1.78 |
2.51 |
3.39 |
|
|
|
|
|
Free Cash Flow before acquisitions and
disposals |
67.7 |
24.3 |
103.7 |
22.4 |
Net Cash Position |
366.7 |
229.9 |
366.7 |
229.9 |
Human Expression
in million euros |
Q2 2021 |
Q2 2022 |
H1 2021 |
H1 2022 |
Volumes in million units |
- |
- |
2,742.7 |
3,519.5 |
% Change |
- |
- |
+11.6% |
+28.3% |
Net Sales |
202.2 |
269.7 |
333.3 |
438.0 |
Change as reported |
+21.2% |
+33.4% |
+13.4% |
+31.4% |
Change on a comparative basis |
+20.1% |
+21.9% |
+12.1% |
+21.7% |
Change at constant currency |
+25.1% |
+25.4% |
+19.1% |
+25.4% |
|
|
|
|
|
Adjusted EBIT |
24.2 |
24.1 |
27.6 |
35.6 |
Adjusted EBIT Margin |
12.0% |
9.0% |
8.3% |
8.1% |
Flame For Life
in million euros |
Q2 2021 |
Q2 2022 |
H1 2021 |
H1 2022 |
Volumes in million units |
- |
- |
799.3 |
850.1 |
% Change |
- |
- |
+35.0% |
+6.4% |
Net Sales |
192.9 |
209.7 |
367.4 |
436.0 |
Change as reported |
+31.0% |
+8.7% |
+37.0% |
+18.7% |
Change on a comparative basis |
+36.9% |
(2.5)% |
+44.7% |
+9.3% |
Change at constant currency |
+39.4% |
(1.4)% |
+47.7% |
+10.1% |
|
|
|
|
|
Adjusted EBIT |
80.5 |
79.8 |
145.7 |
166.9 |
Adjusted EBIT Margin |
41.7% |
38.0% |
39.6% |
38.3% |
Blade Excellence
in million euros |
Q2 2021 |
Q2 2022 |
H1 2021 |
H1 2022 |
Volumes in million units |
- |
- |
1,193.0 |
1,212.4 |
% Change |
- |
- |
0.7% |
+1.6% |
Net Sales |
104.0 |
126.8 |
200.4 |
240.3 |
Change as reported |
+5.4% |
+22.0% |
(0.1)% |
+19.9% |
Change on a comparative basis |
+11.6% |
+10.0% |
+8.0% |
+11.0% |
Change at constant currency |
+11.9% |
+11.1% |
+8.4% |
+11.8% |
|
|
|
|
|
Adjusted EBIT |
20.2 |
17.9 |
32.4 |
43.3 |
Adjusted EBIT Margin |
19.4% |
14.1% |
16.2% |
18.0% |
NET SALES, EARNINGS BEFORE INTEREST AND TAXES (EBIT),
AND ADJUSTED EBIT
in million euros |
Q2 2021 |
Q2 2022 |
H1 2021 |
H1 2022 |
Net Sales |
505.7 |
611.4 |
916.7 |
1,127.2 |
Gross Profit |
261.8 |
292.6 |
473.9 |
559.8 |
Gross Profit margin |
51.8% |
47.9% |
51.7% |
49.7% |
EBITDA |
131.6 |
124.0 |
382.1 |
247.5 |
EBIT |
105.2 |
99.8 |
332.6 |
197.7 |
EBIT margin |
20.8% |
16.3% |
36.3% |
17.5% |
Non-recurring items (see details page 11) |
0.3 |
1.3 |
(166.5) |
5.3 |
Adjusted EBIT |
105.6 |
101.1 |
166.1 |
202.9 |
Adjusted EBIT margin |
20.9% |
16.5% |
18.1% |
18.0% |
H1 2022 Gross Profit margin
decreased by 2.0 points to 49.7%. The impact of input cost
inflation (-5.3 pts compared to H1 2021) and unfavorable FX, mostly
EUR/USD hedging rate (-0.7 pts) were partially offset by favorable
fixed cost absorption (+2.0 pts), favorable pricing (+1.4
pts), and the positive contribution of Inkbox
(+0.3 pts). Q2 2022 Gross Profit margin evolution
followed the same trend.
H1 2022 Adjusted EBIT increased by 22.2%, and
the adjusted EBIT margin was 18.0%, almost flat
compared to H1 2021. Net Sales operating leverage (+4.6 pts) more
than offset the increase in Brand Support (-1.1 pts), and OPEX
(-0.6 pts), and the impact of Inkbox (-0.9 pts).
-
The Human Expression
division's H1 2022
adjusted EBIT margin was 8.1% compared to
8.3% in H1 2021. This slight decrease was driven by an
increase in Raw Material and Freight costs and Inkbox's
investment, partly offset by Net Sales operating leverage and
favorable fixed cost absorption.
- Flame for Life
H1 2022 adjusted EBIT margin was
38.3% compared to 39.6% in H1 2021, due to higher Raw
Materials and Air and Sea Freight import costs, and an
increase in Brand Support, driven notably by the BIC EZ Reach
advertising campaign in the US. This was partly offset by Net
Sales operating leverage and favorable fixed cost absorption.
Flame for Life Q2 2022
adjusted EBIT margin was 38.0% compared to 41.7%
in Q2 2021, as Q2 did not benefit from favorable Net Sales
operating leverage.
- Blade Excellence H1
2022 adjusted EBIT margin was 18.0%
compared to 16.2% in H1 2021, driven by Net Sales operating
leverage, favorable fixed cost absorption, and the positive
contribution from BIC Blade-Tech B2B business. This was partially
offset by higher manufacturing costs (Electricity & Freight
costs) and higher Brand support. Blade Excellence
Q2 2022 adjusted EBIT margin was
14.1% compared to 19.4% in Q2 2021, due to higher Raw Materials and
manufacturing costs (Electricity & Freight costs) partly offset
by favorable Net Sales operating leverage.
Key components of the change in Adjusted ebit margin
(in points) |
Q1 2022vs. Q1 2021 |
Q2 2022vs. Q2 2021 |
H1 2022vs. H1 2021 |
|
+0.2 |
(3.9) |
(2.0) |
|
(0.5) |
(1.8) |
(1.1) |
|
+5.4 |
+1.3 |
+3.0 |
Total change in Adjusted EBIT margin |
+5.1 |
(4.4) |
(0.1) |
NET INCOME AND EPS
in million euros |
Q2 2021 |
Q2 2022 |
H1 2021 |
H1 2022 |
EBIT |
105.2 |
99.8 |
332.6 |
197.7 |
Finance revenue/costs |
(4.9) |
(1.4) |
(4.0) |
(4.1) |
Income before Tax |
100.3 |
98.3 |
328.5 |
193.6 |
Net Income Group share |
68.6 |
71.8 |
230.2 |
139.4 |
Adjusted Net Income Group Share5 |
69.6 |
78.7 |
112.7 |
149.7 |
Adjusted EPS Group Share (in euros) |
1.55 |
1.78 |
2.51 |
3.39 |
EPS Group Share (in euros) |
1.53 |
1.62 |
5.12 |
3.15 |
NET CASH POSITION
CHANGE IN NET CASH POSITION in million euros |
2021 |
2022 |
Net Cash position (beginning of period –
December) |
183.9 |
400.1 |
Net cash from operating activities |
+134.0 |
+62.8 |
- Of which operating cash flow
|
+230.3 |
+275.6 |
- Of which change in working capital and others
|
(96.3) |
(212.8) |
CAPEX6 |
(30.3) |
(40.4) |
Dividend payment |
(80.9) |
(94.7) |
Share buyback program |
(15.7) |
(28.8) |
Net cash from the liquidity contract |
+1.2 |
+0.4 |
Proceed from the sale of Clichy Headquarters |
+173.9 |
- |
Proceed from Pimaco divestiture |
+3.4 |
+1.1 |
Acquisitions7 |
(7.2) |
(67.8) |
Other items |
+4.4 |
(2.8) |
Net Cash position (end of period –
June) |
366.7 |
229.9 |
At the end of June
2022, Net Cash position
was 229.9 million
euros. Net Cash from operating activities was affected by
a growth in working capital due to increased accounts receivables
following high Q2 Net Sales and increased inventory levels of which
40 million euros of input cost inflation from Raw Material,
Freight, and Electricity. The Inkbox acquisition also impacted Net
Cash.
SHAREHOLDERS' REMUNERATION
In line with our disciplined capital allocation framework, we
continued our commitment to attractive shareholder returns with a
balance of dividend and buybacks with:
- 2.15 euros
per share of ordinary
dividend paid in June 2022,
-
28.8
million euros in share buybacks were completed by
SOCIÉTÉ BIC at the end of June 2022. 573,501 shares were purchased
at an average price of 50.28 euros.
OPERATIONAL TRENDS BY DIVISION
HUMAN EXPRESSION
The Human Expression
Division’s Net Sales grew 25.4%
at constant currency and 21.7% on a comparative basis in H1 2022.
This strong performance was driven by solid commercial execution in
all geographies, with double-digit growth in Europe, Latin America,
the Middle East, Africa, and India, supported by the successful
implementation of price increases. In line with our Horizon goals
to strengthen our presence in Creative Expression, we outperformed
the strategic segment of Coloring in 5 key countries (US, UK, South
Africa, Brazil and Mexico).
In Europe, H1 performance was driven by both
Western Europe (UK, France, Italy) and Eastern Europe (Poland,
Turkey). Back-to-School sell-in was boosted by mid-single growth
from both core products like the BIC Cristal and our iconic BIC 4
Color and added-value products like Coloring felt pen and pencils.
We expect Back-to-School sell-out to grow mid-single digit fueled
by strong commercial execution. In France, promotional activities
more than doubled compared to the previous Back-to School-season,
setting up to drive growth, and to outperform the market for the
16th consecutive year in one of our key Stationery markets.
In the US, the Stationery market grew 3% in
value8, driven by premium-priced products such as Gel. BIC gained
+0.7 pts in value share fueled by core stationery products
(including Mechanical Pencil and Correction). We outperformed the
market successfully in key strategic segments like Coloring and
Gel. The 2022 Back-to-School season is expected to be strong, with
70% of US consumers planning to shop in-store, and increasingly
looking for quality and value products in the face of rising
inflation.
In Brazil, the market continued to rebound,
growing double-digit, and we consolidated our leadership position,
gaining +1.9pts versus 2020 (pre-pandemic) achieving 55.5% market
share in value, thanks to efficient in-store execution. Net sales
more than doubled, fueled by robust Back-to-School performance for
both sell-in and sell-out and positive pricing. In
Mexico, the market grew more than 40% in value9, driven by
the return to schools and offices. Net Sales performance was fueled
by Back-to-School sell-in with double-digit growth in both classic
and added-value segments like Coloring. Cello Net Sales in
India increased double-digit, boosted by a continued
rebound of the market and solid double-digit growth in
e-commerce.
FLAME FOR LIFE
The Flame for Life
Division's
Net Sales grew 10.1% at constant currency and 9.3%
on a comparative basis in H1 2022, driven by high-single to
double-digit growth in all major regions we operate in. Sell-out
performance was also robust as BIC outperformed markets in all key
countries including US, France, Germany and Brazil.
In the US, the Pocket lighter market declined
-11.6% in volume and -4.7% in value10, however BIC continued to
successfully outperform, gaining share in both volume (+ 2.4 pts)
and value (+ 1.1 pts). Our added-value utility pocket lighter BIC
EZ Reach continued to be successful and reached 5.5% of the total
pocket lighter market in value, up 1.5 points since the start of
2022. EZ Reach growth has been driven by accelerated distribution
(over 50% distribution within the first 8 months after launch) and
efficient Brand Support (more than 10 billion impressions for our
groundbreaking social media campaign), contributing to the overall
Lighter market expansion by bringing awareness to the Utility
segment. H1 Net sales were boosted by further distribution gains,
and price adjustments. In Q2, performance was softer following a
strong start to the year. Added-value lighters now represent 49% of
total sales in the US, up 4.5 pts versus last year.
In Europe, the recovery in traditional
channels, price increases, and the success of added-value products
such as Djeep and Decorated lighters drove Net Sales' double-digit
growth. Our Invest-to-grow countries including Germany and Turkey
achieved double to triple-digit growth driven by efficient pricing
and promotional actions.
In Latin America, the lighter
market in Brazil grew +0.8% in value, and we continue to gain
market share. BIC's double-digit Net Sales growth was fueled by the
continued demand for more flame usage, high barriers for imported
lighters, and price increases.
BLADE EXCELLENCE
The Blade Excellence
Division’s Net Sales grew 11.8%
at constant currency and 11.0% on a comparative basis in H1 2022.
Sell-in performance was powered by added-value and new products in
Europe, Latin America, and North America, in addition to the
contribution of BIC Blade-Tech. We reached record high market
shares in five of our key markets (Mexico, Brazil, Poland, Portugal
and UK).
In Europe, BIC gained market share in both
France (+1.8 pts in value) and the UK (+1.3 pts in value)11 fueled
by the success of 3-blade products in both female and male
segments. Net Sales were notably driven by good performance and
promotional activities in the UK, Poland, and Turkey. Added-value
products, such as the Flex and Soleil ranges, contributed
successfully to growth.
In the US, the market grew 0.8% in value, and
BIC kept pace. The performance of our Soleil range was fueled by
the success of our new BIC Soleil Escape shaver launched earlier
this year, which already reached 2.0% of market share12. In line
with our Horizon goals to grow through innovative launches, Soleil
Escape is one of our most successful Soleil product launches.
Escape 4 and 3-blade shavers were the #1 and #2 new items in the
One-Piece category year-to-date June, bringing in new buyers and
contributing to the overall category expansion.
In Brazil and Mexico, we pursued our successful
trade-up strategy toward three blades with solid double-digit
growth in both countries. In Brazil, after four years of successful
share gain, we continued to outperform the market (+1.0 pts in
value)13, reaching a historical record of 24% share in value,
boosted by premium male and female products (Comfort 3 and Simply
Soleil). In Mexico, the market was up mid-single digit in value,
and we kept pace thanks to the solid performance of both Flex and
Soleil ranges in the traditional channel.
APPENDIX
2022 MARKET
ASSUMPTIONS
Our 2022 outlook is based on the following market
assumptions26F6F14:
Market trends (in
value):
- Europe: Low to mid-single-digit decrease in
Stationery, flat to low single-digit decrease in Lighters, flat to
low-single-digit decrease in Shavers
- North America:
- Low to mid-single-digit decrease in U.S. Stationery market
- Low to mid-single-digit decrease for total U.S. pocket Lighter
market
- Slight decrease in the total U.S. one-piece Shaver market
- Latin America: double-digit increase in
Stationery; Low to mid-single-digit decrease in Lighters and low to
mid-single-digit increase in Shavers
- India: double-digit increase in
Stationery
EBIT drivers:
- Gross Profit:
- Increase in volumes and prices
- Higher Raw Materials and Sea and Air Freight costs
- Slightly unfavorable FX impact (Negative USD-Euro hedging /
Positive USD-MXN)
- Positive contribution from Inkbox
- Adjusted EBIT:
- Increase in Brand Support to support Net Sales growth –
increase in R&D and OPEX to support long-term growth and
innovation
- Additional savings
- Negative impact on 2022 EBIT from Inkbox
Free Cash Flow before Acquisitions and Disposals
drivers:
- Approximately 100 million euros in CAPEX
Currency: 2022 USD-EUR hedging rate: 1.1750
Q2 NET SALES BY GEOGRAPHYin million euros |
Q2 2021 |
Q2 2022 |
% As reported |
% at constant currencies |
% On a comparative basis |
Group |
505.7 |
611.4 |
+20.9 % |
+11.6 % |
+9.6 % |
Europe |
166.8 |
190.4 |
+14.2 % |
+13.3 % |
+13.3 % |
North America |
222.3 |
265.5 |
+19.4 % |
+5.7 % |
+3.2 % |
Latin America |
67.7 |
95.5 |
+41.1 % |
+24.6 % |
+18.2 % |
Middle East and Africa |
29.1 |
28.7 |
(1.5) % |
(8.0) % |
(8.0) % |
Asia and Oceania (including India) |
19.8 |
31.3 |
+58.2 % |
+48.9 % |
+48.9 % |
H1 NET SALES BY GEOGRAPHY in million euros |
H1 2021 |
H1 2022 |
% As reported |
% at constant currencies |
% On a comparative basis |
Group |
916.7 |
1,127.2 |
+23.0 % |
+15.5 % |
+13.7 % |
Europe |
292.0 |
336.9 |
+15.4 % |
+15.7 % |
+15.7 % |
North America |
406.4 |
499.0 |
+22.8 % |
+11.3 % |
+9.2 % |
Latin America |
125.9 |
179.7 |
+42.8 % |
+29.6 % |
+24.0 % |
Middle East and Africa |
51.1 |
57.1 |
+11.7 % |
+5.4 % |
+5.4 % |
Asia and Oceania (including India) |
41.3 |
54.4 |
+31.8 % |
+26.0 % |
+26.0 % |
Q2 NET SALES BY DIVISIONin million euros |
Q2 2021 |
Q2 2022 |
Change as reported |
FX
impact15(in points) |
Change in Perimeter16(in
points) |
Argentina impact17(in
points) |
Change on a Comparativebasis |
Group |
505.7 |
611.4 |
+20.9 % |
+9.5 |
+1.2 |
+0.6 |
+9.6 % |
Stationery- Human Expression |
202.2 |
269.7 |
+33.4 % |
+8.2 |
+2.7 |
+0.6 |
+21.9 % |
Lighters- Flame for Life |
192.9 |
209.7 |
+8.7 % |
+10.3 |
- |
+0.9 |
(2.5) % |
Shavers- Blade Excellence |
104.0 |
126.8 |
+22.0 % |
+11.3 |
- |
+0.7 |
+10.0 % |
Other Products |
6.6 |
5.2 |
(21.1) % |
- |
- |
- |
(21.1) % |
H1 NET SALES BY DIVISION in million euros |
H1 2021 |
H1 2022 |
Change as reported |
FX impact(in points) |
Change in Perimeter(in points) |
Argentina impact(in points) |
Change on a Comparativebasis |
Group |
916.7 |
1,127.2 |
+23.0 % |
+7.8 |
+0.9 |
+0.6 |
+13.7 % |
Stationery- Human Expression |
333.3 |
438.0 |
+31.4 % |
+6.3 |
+2.5 |
+0.9 |
+21.7 % |
Lighters- Flame for Life |
367.4 |
436.0 |
+18.7 % |
+8.8 |
- |
+0.6 |
+9.3 % |
Shavers- Blade Excellence |
200.4 |
240.3 |
+19.9 % |
+8.4 |
- |
+0.5 |
+11.0 % |
Other Products |
15.7 |
12.8 |
(18.4) % |
- |
- |
- |
(18.4) % |
IMPACT OF CHANGE IN PERIMETER AND CURRENCY FLUCTUATIONS ON NET
SALES (EXCLUDES ARS) (in %) |
Q2 2021 |
Q2 2022 |
H1 2021 |
H1 2022 |
Perimeter |
+2.2 |
+1.2 |
+3.0 |
+0.9 |
Currencies |
(5.5) |
+9.5 |
(7.2) |
+7.8 |
Of which USD |
(5.2) |
+6.1 |
(4.8) |
+5.2 |
Of which BRL |
(0.4) |
+1.3 |
(1.4) |
+1.2 |
Of which MXN |
+0.4 |
+0.8 |
(0.1) |
+0.6 |
Of which AUD |
+0.2 |
+0.1 |
+0.2 |
+0.1 |
Of which ZAR |
+0.2 |
+0.0 |
+0.0 |
+0.1 |
Of which INR |
(0.1) |
+0.2 |
(0.2) |
+0.2 |
Of which RUB and UAH |
(0.3) |
+0.7 |
(0.4) |
+0.3 |
sensitivity to net sales and income before tax (ibt) of usd-euro
fluctuation |
H1 2021 |
H1 2022 |
+/- 5% change in USD impact on Net Sales |
2.2% |
2.2% |
+/- 5% change in USD impact on IBT |
0.8% |
1.3% |
EBIT BY DIVISIONin million euros |
Q2 2021 |
Q2 2022 |
H1 2021 |
H1 2022 |
Group |
105.2 |
99.8 |
332.6 |
197.7 |
Margin |
20.8% |
16.3 % |
36.3% |
17.5 % |
Stationery- Human Expression |
23.9 |
23.3 |
29.1 |
33.5 |
Margin |
11.8% |
8.6 % |
8.7% |
7.7 % |
Lighters- Flame for Life |
80.5 |
79.3 |
143.8 |
165.9 |
Margin |
41.7% |
37.8 % |
39.2% |
38.0 % |
Shavers- Blade Excellence |
20.1 |
17.9 |
32.3 |
41.1 |
Margin |
19.3% |
14.1 % |
16.1% |
17.1 % |
Other Products |
(2.8) |
(1.9) |
(3.0) |
(3.8) |
Unallocated costs |
(16.5) |
(18.8) |
130.3 |
(39.1) |
ADJUSTED EBIT BY DIVISIONin million euros |
Q2 2021 |
Q2 2022 |
H1 2021 |
H1 2022 |
Group |
105.6 |
101.1 |
166.1 |
202.9 |
Margin |
20.9% |
16.5 % |
18.1% |
18.0 % |
Stationery- Human Expression |
24.2 |
24.1 |
27.6 |
35.6 |
Margin |
12.0% |
9.0 % |
8.3% |
8.1 % |
Lighters- Flame for Life |
80.5 |
79.8 |
145.7 |
166.9 |
Margin |
41.7% |
38.0 % |
39.6% |
38.3 % |
Shavers- Blade Excellence |
20.2 |
17.9 |
32.4 |
43.3 |
Margin |
19.4% |
14.1 % |
16.2% |
18.0 % |
Other Products |
(2.8) |
(1.9) |
(3.0) |
(3.8) |
Unallocated costs |
(16.5) |
(18.8) |
(36.5) |
(39.1) |
Non-recurring Itemsin million euros |
Q2 2021 |
Q2 2022 |
H1 2021 |
H1 2022 |
Clichy Headquarters Sale Gain |
- |
- |
167.7 |
- |
Pimaco divestiture gain |
- |
- |
3.0 |
- |
Restructuring costs related to BIC's transformation plan. |
(0.3) |
- |
(4.2) |
- |
Acquisition costs related to Inkbox (January 2022), Rocketbook
earnout and Djeep price adjustment |
- |
(1.3) |
- |
(2.3) |
Ukraine operations impairment |
- |
- |
- |
(3.0) |
CONDENSED PROFIT AND LOSS in million euros |
Q2 2021 |
Q2 2022 |
H1 2021 |
H1 2022 |
Net Sales |
505.7 |
611.4 |
916.7 |
1,127.2 |
Cost of goods |
243.9 |
318.8 |
442.8 |
567.4 |
Gross profit |
261.8 |
292.6 |
473.9 |
559.8 |
Administrative & net other operating expenses/ (gain) |
156.6 |
192.8 |
141.3 |
362.1 |
EBIT |
105.2 |
99.8 |
332.6 |
197.7 |
Finance revenue/costs |
(4.9) |
(1.4) |
(4.0) |
(4.1) |
Income before tax |
100.3 |
98.3 |
328.5 |
193.6 |
Income tax expense |
(31.7) |
(26.6) |
(98.4) |
(54.2) |
Net Income Group Share |
68.6 |
71.8 |
230.2 |
139.4 |
Earnings per Share Group Share (in euros) |
1.53 |
1.62 |
5.12 |
3.15 |
Average number of shares outstanding (net of treasury shares) |
44,967,216 |
44,210,401 |
44,967,216 |
44,210,401 |
BALANCE SHEET in million
euros |
June 30, 2021 |
December 31, 2021 |
June 30, 2022 |
ASSETS |
- Property, plant &
equipment
|
590.7 |
588.8 |
617.6 |
|
1.9 |
1.9 |
1.9 |
- Goodwill and intangible assets
|
312.2 |
322.1 |
416.4 |
|
148.5 |
157.3 |
167.7 |
Non-current assets |
1.053.3 |
1,070.1 |
1,203.6 |
|
443.0 |
490.2 |
625.5 |
- Trade and other receivables
|
531.0 |
418.2 |
577.2 |
|
29.2 |
46.7 |
46.5 |
- Other current financial assets and
derivative instruments
|
8.2 |
1.7 |
2.6 |
- Cash and cash equivalents
|
450.0 |
468.9 |
320.5 |
Current assets |
1,461.4 |
1,425.7 |
1,572.3 |
TOTAL ASSETS |
2,514.7 |
2,495.8 |
2,775.9 |
LIABILITIES & SHAREHOLDERS'
EQUITY |
Shareholders'
equity |
1.641.5 |
1.456.4 |
1,839.0 |
|
24.8 |
28.0 |
49.3 |
- Other non-current liabilities
|
199.3 |
222.2 |
136.4 |
Non-current liabilities |
224.1 |
250.2 |
185.7 |
|
167.2 |
99.5 |
203.7 |
|
90.9 |
90.0 |
101.9 |
- Other current liabilities
|
391.0 |
273.4 |
445.6 |
Current liabilities |
649.1 |
462.8 |
751.2 |
TOTAL LIABILITIES &
SHAREHOLDERS'
EQUITY |
2,514.7 |
2,169.4 |
2,775.9 |
WORKING CAPITAL in million euros |
H1 2021 |
H1 2022 |
Total Working Capital |
535.6 |
706.2 |
Of which, inventories |
443.0 |
625.5 |
Of which, trade and other receivables |
531.0 |
577.2 |
Of which, Trade and other payables |
(167.3) |
(203.7) |
CASH FLOW STATEMENTin million euros |
H1 2021 |
H1 2022 |
Group Net income |
230.2 |
139.4 |
- Argentina hyperinflationary accounting (IAS29)
|
1.4 |
4.2 |
- Amortization and provisions
|
60.2 |
63.2 |
- (Gain)/Loss from disposal of fixed assets
|
(170.0) |
(0.6) |
|
108.6 |
69.4 |
CASH FLOW FROM OPERATIONS |
230.3 |
275.6 |
- (Increase)/decrease in net current working capital
|
(62.6) |
(175.3) |
|
(33.7) |
(37.5) |
NET CASH FROM OPERATING ACTIVITIES (A) |
134.0 |
62.8 |
|
(30.3) |
(40.4) |
- (Purchase)/Sale of other current financial assets
|
- |
- |
- Proceed from the sale of Clichy Headquarters
|
+173.9 |
- |
- Proceed from Pimaco divestiture
|
+3.4 |
+1.1 |
|
(7.2) |
(67.8) |
|
1.8 |
0.5 |
NET CASH FROM INVESTING ACTIVITIES (B) |
141.7 |
(106.6) |
|
(80.9) |
(94.7) |
- Borrowings/(Repayments)/(Loans)
|
0.9 |
21.3 |
- Share buy-back program & Liquidity program
|
(14.5) |
(28.4) |
|
(8.7) |
(8.2) |
NET CASH FROM FINANCING ACTIVITIES (C) |
(103.3) |
(110.0) |
NET INCREASE/ (DECREASE) IN CASH AND CASH EQUIVALENTS NET OF BANK
OVERDRAFTS (A+B+C) |
172.5 |
(153.8) |
OPENING CASH AND CASH EQUIVALENTS NET OF BANK OVERDRAFTS |
264.7 |
468.4 |
- Net increase / decrease in cash and cash equivalents net of
bank overdrafts (A+B+C)
|
172.5 |
(153.8) |
|
11.3 |
4.8 |
CLOSING CASH AND CASH EQUIVALENTS NET OF BANK OVERDRAFTS |
448.5 |
319.4 |
RECONCILIATION WITH ALTERNATIVE PERFORMANCE
MEASURES
ADJUSTED EBIT RECONCILIATIONin million euros |
Q2 2021 |
Q2 2022 |
H1 2021 |
H1 2022 |
EBIT |
105.2 |
99.8 |
332.6 |
197.7 |
Restructuring costs (Transformation plan) |
0.3 |
- |
4.2 |
- |
Clichy Headquarters sales capital gain |
- |
- |
(167.7) |
- |
Pimaco divestiture capital gain |
- |
- |
(3.0) |
- |
Acquisition costs |
- |
0.6 |
|
1.5 |
Rocketbook earnout/ Djeep price adjustment |
|
0.7 |
- |
0.7 |
Ukraine operations impairment |
- |
- |
- |
3.0 |
Adjusted EBIT |
105.6 |
101.1 |
166.1 |
202.9 |
ADJUSTED EPS RECONCILIATIONin euros |
Q2 2021 |
Q2 2022 |
H1 2021 |
H1 2022 |
EPS |
1.53 |
1.62 |
5.12 |
3.15 |
Restructuring costs (Transformation plan) |
+0.01 |
- |
+0.07 |
- |
Argentina hyperinflationary accounting (IAS29) |
+0.01 |
+0.09 |
+0.03 |
+0.1 |
Clichy Headquarters sales capital gain |
- |
- |
(2.67) |
- |
Pimaco divestiture capital gain |
- |
|
(0.04) |
- |
Acquisition costs |
- |
+0.01 |
- |
+0.02 |
Rocketbook earnout/ Djeep price adjustment |
|
+0.06 |
- |
+0.06 |
Ukraine operations impairment |
- |
- |
- |
+0.06 |
Adjusted EPS |
1.55 |
1.78 |
2.51 |
3.39 |
Net cash reconciliationin million euros - rounded figures |
December 31, 2021 |
June 30, 2022 |
Cash and cash equivalents (1) |
+468.9 |
+320.5 |
Current borrowings (2)319 |
(63.9) |
(87.9) |
Non-current borrowings (3) |
(4.9) |
(2.7) |
Net Cash Position (1) - (2) – (3) |
400.1 |
229.9 |
Free Cash Flow reconciliationin million euros - rounded
figures |
December 31, 2021 |
June 30, 2022 |
Net cash from operating activities (1) |
280.6 |
62.8 |
Capital expenditure (2) |
(74.9) |
(40.4) |
Free Cash Flow before acquisition and disposals (1) - (2) |
205.7 |
22.4 |
SHARE BUYBACK PROGRAM
SOCIETE BIC |
Number of sharesacquired |
Average weighted price (in €) |
Amount(in M€) |
January 2022 |
23,100 |
50.19 |
1.2 |
February 2022 |
113,568 |
47.70 |
5.4 |
March 2022 |
140,897 |
46.48 |
6.5 |
April 2022 |
75,550 |
47.85 |
3.6 |
May 2022 |
126,028 |
56.52 |
7.1 |
June 2022 |
94,358 |
52.72 |
5.0 |
Total |
573,501 |
50.28 |
28.8 |
CAPITAL AND VOTING RIGHTS
As of June 30, 2022, the total number of issued shares of
SOCIÉTÉ BIC is 44,677,929 shares, representing:
- 65,721,660 voting rights,
- 65,005,053 voting rights excluding shares without voting
rights
Total number of treasury shares held at the end
of June 2022: 716,607.
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 2021 and
2022.
- On a
12-month
rolling basis at constant
currency: last 12-month Net Sales variance vs. last year
last 12-month at constant currency
- 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,
2022, were approved by the Board of Directors on August 2,
2022. 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 2021 Universal
Registration Document filed with the French financial markets
authority (AMF) on March 25, 2022. BIC's 2022 Half Year Financial
Report will be filed to the AMF on August 4th, 2022.
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®, Inkbox and more. In 2021, BIC Net
Sales were 1,831.9 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.
Find more about BIC's
Horizon Plan in our Investor Insights Newsletters, and dig further
into our Raw Materials, Flame For Life strategy, Skin Creative
business, and Distribution Networks.
BIC's
Q2 and H1 earnings conference call and
webcast will be hosted by Gonzalve Bich, CEO and Chad
Spooner, CFO on Wednesday 3 August 2022 at
8:30 AM CET time:
- To participate to the webcast:
https://channel.royalcast.com/landingpage/bic/20220803_1/
- To participate to the conference call:
From France: |
+33 (0) 1 70 37
71 66 |
From the U.K: |
+44 (0) 33 0551
0200 |
From the
U.S.A: |
+1 212 999
6659 |
Vocal access
code: |
« BIC »
|
CONTACTS
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 |
2022/2023
AGENDAALL DATES TO BE CONFIRMED
3rd Quarter 2022
Results |
October 27, 2022 |
4th Quarter and
Full-Year 2022
Results |
February 14, 2023 |
1st Quarter 2023
Results |
April 25, 2023 |
1 See market assumptions page 92 See glossary3: 2019 Baseline4
Other expenses include notably Freight & Distribution and
R&D 5 See glossary6 Including -7.3 million euros in 2022 and
+0.8 million euros in 202.01 related to assets payable change7 Haco
Industries Ltd, Rocketbook & Djeep in 2021, Inkbox, Rocketbook
& Djeep in 20228 YTD June - NPD data9 YTD May 2022 – Nielsen,
estimated 24% coverage10 Period ending 2 July 2022 – IRI, estimated
70% market coverage11 YTD May 2022, Nielsen12 YTD JUN 2022 - POS13
YTD May – Nielsen, estimated 62% coverage14 Euromonitor and BIC
estimates 15 Forex impact excluding Argentinian Peso (ARS)16 Mainly
acquisition of Inkbox17 See glossary 18 Including -7.3 million
euros in 2022 and +0.8 million euros in 2021 related to assets
payable change
19 Excluding financial liabilities following IFRS16
implementation
- BIC_Q2 & H1 2022_Results_PressRelease
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