Clichy, France - October 23, 2024
THIRD QUARTER & NINE MONTHS 2024 RESULTS
Sequential improvement in Q3 Net Sales growth
Robust adjusted EBIT margin, 2024 Margin Outlook upgraded
Q3 2024 Net Sales of €540 million, up 0.2% at constant currency excl. Argentina1 driven by solid performance in Blade Excellence and return to growth in Flame for Life, partially offset by Human Expression
- Human Expression: Q3 Net Sales of €200 million, down 4.3%1, impacted by a soft performance in most key regions, except in Middle East and Africa
- Flame for Life: Q3 Net Sales of €192 million, up 0.7%1, with continued strong growth in Europe and sequential improvement in North America
- Blade Excellence: Q3 Net Sales of €142 million, up 6.4%1, fueled by solid performance in North America, Europe and Latin America
Q3 2024 Adjusted EPS of €1.77, up 19% versus Q3 2023
Solid Free Cash Flow generation at €196 million during the first nine months 2024, growing 38% year-on-year
2024 Margin Outlook upgraded: the Group now expects an adjusted EBIT margin approaching 15.5% in 2024
Key Group financial figures
| in million euros | Q3 2023 | Q3 2024 | 9M 2023 | 9M 2024 |
| Net Sales | 560.3 | 539.7 | 1,737.3 | 1,679.1 |
| Change as reported | (3.4) % | (3.7) % | +1.8% | (3.3) % |
| Change on a constant currency basis excl. Argentina | +3.2% | +0.2% | +3.9% | (0.3) % |
| Change on a constant currency basis | +7.2% | +2.7% | +7.1% | +3.1% |
| Adjusted EBIT | 85.3 | 102.2 | 260.4 | 272.4 |
| Adjusted EBIT Margin | 15.2% | 18.9% | 15.0% | 16.2% |
| EPS | 1.39 | 1.77 | 4.22 | 4.44 |
| Adjusted EPS | 1.49 | 1.77 | 4.43 | 4.73 |
| Free Cash Flow (before acquisitions and disposals) | 139.7 | 159.4 | 142.2 | 196.3 |
| Net Cash Position | 308.3 | 328.7 | 308.3 | 328.7 |
Gonzalve Bich, BIC's Chief Executive Officer commented:
"Our third quarter results demonstrated the strong resilience of our operating model and our adaptability to navigate a challenging macroeconomic environment.
Leveraging our commercial and financial discipline, we saw sequential net sales improvement while delivering robust margins and free cash flow generation. This enabled us to raise our adjusted EBIT margin outlook for the year, and we now expect an adjusted EBIT margin approaching 15.5% for 2024.
Performance was driven by gradual improvement in our Flame for Life division in the US and continued growth across the rest of the Group, through solid execution, notably in Blade Excellence. In Human Expression, we gained market share during the Back-to-School season in key geographies, despite the ongoing softness in consumption negatively impacting market trends.
As we get closer to 2025, we will continue leveraging the transformational capabilities developed over the last years under our Horizon strategic plan, focusing on what we can control to deliver on our objectives of long-term profitable growth and solid cash generation.”
2024 Margin Outlook upgraded (based on current market assumptions2)
Full Year 2024 Net Sales are expected to grow low single digit at constant currency3.
We now expect stronger profitability in 2024 with an adjusted EBIT margin approaching 15.5% (compared to a slight improvement versus 2023). We will continue to drive EBIT expansion to deliver long-term profitable growth.
Free Cash Flow is expected to be above €220 million in 2024.
Key highlights
| in million euros | Q3 2023 | Q3 2024 | 9M 2023 | 9M 2024 |
| Net Sales | 560.3 | 539.7 | 1,737.3 | 1,679.1 |
| Gross Profit | 295.6 | 284.3 | 876.4 | 846.6 |
| Gross Profit margin | 52.8% | 52.7% | 50.4% | 50.4% |
| EBITDA | 96.4 | 123.0 | 320.5 | 325.0 |
| EBIT | 81.6 | 101.5 | 256.3 | 256.0 |
| EBIT margin | 14.6% | 18.8% | 14.8% | 15.2% |
| Non-recurring items | 3.7 | 0.7 | 4.1 | 16.4 |
| Adjusted EBIT | 85.3 | 102.2 | 260.4 | 272.4 |
| Adjusted EBIT margin | 15.2% | 18.9% | 15.0% | 16.2% |
9M 2024 net sales decreased 0.3% at constant currency excl. Argentina, mainly due to soft performance in North America with deteriorating consumption trends impacting all three divisions. This was partially offset by solid performance in Europe, Latin America and Middle East and Africa, notably in the Blade Excellence division.
Q3 2024 gross profit margin was relatively stable at 52.7%, with favorable price and mix, lower raw material costs, and manufacturing efficiencies. This was offset by negative impact from fixed cost absorption and currency fluctuations.
Q3 2024 adjusted EBIT margin was 18.9%, up 3.7 points year-on-year, mainly attributable to lower operating and other expenses, as well as lower brand support. Adjusted EBIT increased 20% year-on-year, reaching 102 million euros.
9M 2024 gross profit margin was stable at 50.4%. Excluding the special bonus4 and the fair value adjustment on the Power Purchase Agreement5 in France, 9M 2024 gross profit margin increased 40 basis points to 50.8%, driven by favorable price and mix, manufacturing efficiencies and currency fluctuations. This was partially offset by unfavorable fixed cost absorption and higher raw material costs, notably in the Flame for Life division.
9M 2024 adjusted EBIT margin was up 1.2 points, at 16.2%, driven by gross profit margin improvement as well as lower operating and other expenses in Q3 2024 and lower brand support.
Key components of the change in adjusted EBIT margin
| Key components of the change in adjusted EBIT margin (in points) | Q1 2024 vs. Q1 2023 | Q2 2024 vs. Q2 2023 | Q3 2024 vs. Q3 2023 | 9M 2024 vs. 9M 2023 |
| +0.5 | +0.8 | (0.1) | +0.4 |
| (0.1) | - | +1.0 | +0.3 |
| (1.4) | +0.1 | +2.8 | +0.5 |
| Total change in Adjusted EBIT margin | (1.0) | +0.9 | +3.7 | +1.2 |
Net income and earnings per share (EPS)
| in million euros | Q3 2023 | Q3 2024 | 9M 2023 | 9M 2024 |
| EBIT | 81.6 | 101.5 | 256.3 | 256.0 |
| Finance revenue/costs | 1.5 | 0.7 | (4.0) | 1.0 |
| Income before Tax | 83.1 | 102.3 | 252.3 | 257.0 |
| Net Income Group share | 59.8 | 73.6 | 181.4 | 185.0 |
| Adjusted Net Income Group Share | 64.0 | 85.9 | 190.7 | 197.3 |
| Adjusted EPS Group Share (in euros) | 1.49 | 1.77 | 4.43 | 4.73 |
| EPS Group Share (in euros) | 1.39 | 1.77 | 4.22 | 4.44 |
9M 2024 effective tax rate was 28.0% vs. 28.1% in 9M 2023.
Change in net cash position
| Change in net cash position (in million euros) | 9M 2023 | 9M 2024 |
| Net Cash position (as of end of December) | 359.9 | 385.4 |
| Net cash from operating activities | +211.5 | +252.9 |
| +359.3 | +364.9 |
| (90.6) | (41.2) |
| (57.2) | (70.8) |
| Capital expenditures7 | (69.3) | (56.6) |
| Free Cash Flow (before acquisition and disposals) | 142.2 | 196.3 |
| Dividend payment | (110.2) | (178.0) |
| Share buyback program net from liquidity contract8 | (97.3) | (50.8) |
| Other items | +13.7 | (24.2) |
| Net Cash position (as of end of September) | 308.3 | 328.7 |
9M 2024 Free Cash Flow (before acquisitions and disposals) was 196 million euros, compared to 142 million euros last year, driven by efficient working capital management and lower capital expenditures.
Update on the 2025 Horizon Strategic Plan
During our first 9 months 2024, the Group made progress on its 2025 Horizon strategic objectives:
- The Group continued its focus on innovative advertising campaigns such as its partnership with American singer Charlie Puth to promote the iconic 4-Color Pen in the US during the back-to-school season, which yielded tremendous results across print, broadcast and social media with more than 4.2 billion impressions. In Q3, BIC also launched the 'Lit Games' campaign with Snoop Dogg and Martha Stewart during the Olympics to promote its added-value EZ Reach utility pocket lighter.
- The core eCommerce sales grew strongly during the first 9 months of 2024, fueled by all three divisions with strong performance in Europe and North America. Key products contributing to growth included Ball Pen and our 4-Color pen. BIC successfully continued to outpace the market and gain share in Stationery in the US as well as in Shavers in France9.
- The Revenue Growth Management strategy continued to deliver value through pricing and mix. With the aim of streamlining our product offerings to better address the needs of its customers, drive cost savings, and leaving space for innovation, BIC reduced its total SKUs by 11% year to date with Human Expression delivering the most significant reduction.
Human Expression
| in million euros | Q3 2023 | Q3 2024 | 9M 2023 | 9M 2024 |
| Net Sales | 214.7 | 199.6 | 675.0 | 652.2 |
| Change as reported | (4.7) % | (7.0) % | +1.8% | (3.4) % |
| Change on a constant currency basis excluding Argentina | +1.3% | (4.3) % | +4.0% | +0.2% |
|
setTimeout(function () {
dataLayer.push({
'event': 'article_complete',
'page_type': 'article',
'headline': 'BIC: THIRD QUARTER & NINE MONTHS 2024 RESULTS
',
'article_id': '337115',
'content_category': 'TMT Newswire',
'content_subcategory': 'GlobeNewswire',
'article_type': 'free',
'author_id': '0',
'author_name': '',
'publish_date': '2024-10-23',
'publish_time': '23:51',
'feature_type': '',
'article_tags': ''
});
},6000)
|