BIC Group - Press Release
Clichy - 22 April 2015
BIC Group - First Quarter 2015 Results
Net Sales: 510.8 million euros, up 17.6% as reported and +6.8% on a comparative basis*
- Consumer business up 7.4% on a comparative basis
- BIC Graphic up 2.4% on a comparative basis
- Normalized* IFO: 101.8 million euros, up 39.4%
-
- Normalized IFO margin: 19.9% (vs. 16.8% for Q1 2014)
- Net Income Group Share: 77.2 million euros, up 54.2%
-
- EPS Group Share: 1.64 euros, up 53.3%
Q1 2015 Key operational figures
| Net Sales growth on a comparative basis* | Normalized IFO margin* | |
| Group | +6.8% | 19.9% |
| Consumer business | +7.4% | 23.6% |
| +1.8% | 13.6% |
| +9.7% | 37.6% |
| +14.7% | 21.3% |
| BIC Graphic | +2.4% | -6.7% |
Commenting on BIC Group results, Mario Guevara, Chief Executive Officer, said: "We delivered good Q1 2015 results, with solid sales performance across all geographies and an improvement in profitability.
Our consumer business posted robust organic growth in Lighters and Shavers, benefiting from distribution gains and new product launches. BIC Graphic confirmed positive sales momentum in an ever changing environment.
These first three months reinforce our confidence to achieve our full year 2015 objectives."
Full Year 2015 Outlook
In 2015, we expect Group Net Sales to grow between 4% and 5% on a comparative basis.
Excluding major currency fluctuations, Consumer Business Normalized IFO margin is expected to be consistent with 2014's. BIC Graphic Normalized IFO margin is expected to improve.
Unaudited figures
* See glossary page 11
Key figures
| FIRST QUARTER | ||||||
| In million euros See glossary page 11 | 2014* | 2015 | Change as reported | Change at constant currency | Change at comp. basis | |
| GROUP | ||||||
| Net Sales | 434.2 | 510.8 | +17.6% | +6.2% | +6.8% | |
| Gross Profit | 213.3 | 262.3 | +23.0% | |||
| Normalized Income From Operations | 73.0 | 101.8 | +39.4% | |||
| Normalized IFO margin | 16.8% | 19.9% | ||||
| Income From Operations | 72.9 | 97.6 | +33.7% | |||
| IFO margin | 16.8% | 19.1% | ||||
| Net Income Group Share | 50.1 | 77.2 | +54.2% | |||
| Earnings Per Share Group Share (in euros) | 1.07 | 1.64 | +53.3% | |||
| BY CATEGORY | ||||||
| Stationery | ||||||
| Net Sales | 144.0 | 157.1 | +9.1% | -0.2% | +1.8% | |
| IFO | 15.6 | 19.8 | ||||
| IFO margin | 10.8% | 12.6% | ||||
| Normalized IFO margin | 10.8% | 13.6% | ||||
| Lighters | ||||||
| Net Sales | 133.6 | 163.5 | +22.3% | +9.7% | +9.7% | |
| IFO | 48.9 | 61.0 | ||||
| IFO margin | 36.6% | 37.3% | ||||
| Normalized IFO margin | 36.6% | 37.6% | ||||
| Shavers | ||||||
| Net Sales | 88.9 | 112.4 | +26.5% | +14.7% | +14.7% | |
| IFO | 15.5 | 21.4 | ||||
| IFO margin | 17.4% | 19.0% | ||||
| Normalized IFO margin | 17.4% | 21.3% | ||||
| Other Products | ||||||
| Net Sales | 16.1 | 16.8 | +4.1% | -1.6% | -1.6% | |
| Total Consumer business | ||||||
| Net Sales | 382.6 | 449.7 | +17.6% | +6.7% | +7.4% | |
| IFO | 76.7 | 101.7 | ||||
| IFO margin | 20.1% | 22.6% | ||||
| Normalized IFO margin | 20.1% | 23.6% | ||||
| BIC Graphic | ||||||
| Net Sales | 51.7 | 61.1 | +18.3% | +2.4% | +2.4% | |
| IFO | -3.8 | -4.1 | ||||
| IFO margin | -7.3% | -6.7% | ||||
| Normalized IFO margin | -7.2% | -6.7% | ||||
*: restated from IFRIC 21
Group operational trends
Net Sales
For the first quarter 2015, Net Sales were 510.8 million euros up 17.6% as reported, +6.2% at constant currency, and +6.8% on a comparative basis. The strong positive impact of currency fluctuations (+11.4%) is mainly due to the strength of the USD versus the EUR.
- Consumer business grew 7.4% on a comparative basis with a good performance across all geographies (Europe +8.0%, North America +11.0%, Developing Markets +3.9%).
- BIC Graphic Net Sales increased 2.4% on a comparative basis.
Gross Profit margin
Q1 2015 Gross Profit margin increased 2.3 points to 51.4% of sales versus 49.1% in 2014, benefiting from favorable FX and raw material impacts.
Income From Operations and Normalized Income From Operations
Q1 2015 Normalized IFO was 101.8 million euros (19.9% normalized IFO margin). Consumer business normalized IFO margin was 23.6%, an increase of 3.5 points notably driven by higher Gross Profit. BIC Graphic normalized IFO margin increased 0.5 point to -6.7%.
The key components of the change in Normalized IFO margin were:
| In points | Q1 2014 vs. 2013 | Q1 2015 vs. 2014 |
| +1.5 | +2.3 |
| +0.6 | +0.2 |
| -0.3 | +0.6 |
| Cello Pens consolidation impact on Normalized IFO | +0.2 | - |
| Total impact | +2.0 | +3.1 |
Non-recurring items
| In million euros | Q1 2014 | Q1 2015 | |
| Income From Operations | 72.9 | 97.6 | |
| As % of Net Sales | 16.8% | 19.1% | |
| Restructuring costs related primarily to distribution reorganization in the Middle East and Africa regions | +0.1 | +4.2 | |
| Normalized IFO | 73.0 | 101.8 | |
| As % of Net Sales | 16.8% | 19.9% |
Full Year Net Income and EPS
Income before tax increased 48.1% as reported to 110.3 million euros. Net finance revenue increased to 12.7 million euros compared to 1.5 million euros in 2014 due to the favorable revaluation of financial assets denominated in USD.
Net income Group Share was 77.2 million euros, a 54.2% increase as reported. The tax rate was 30.0%.
EPS Group share is 1.64 euros compared to 1.07 euros in Q1 2014, up 53.3%. Normalized EPS Group share increased 58.9% to 1.70 euros compared to 1.07 euros in Q1 2014.
Net cash position
At the end of March 2015, the net cash position was 398.2 million euros of which -87.3 million euros of Cello Pens put option valuation.
Evolution of Net Cash Position (in million euros)
| 2014 | 2015 | |
| Net Cash position at the beginning of the period (December) | 196.7 | 320.2 |
| +38.3 | +87.2 |
| +78.2 | +142.3 |
| -39.9 | -55.1 |
| -22.0 | -23.7 |
| +8.8 | +6.2 |
| +4.3 | +8.3 |
| Net Cash position at the end of the period (March) | 226.1 | 398.2 |
The net cash from operating activities was +87.2 million euros with +142.3 million euros in cash flow from operations and a change in working capital of -55.1 million euros impacted by the increase in inventories in line with expected sales activity for the balance of the year.
Shareholders' remuneration
- 2.85 euros ordinary dividend per share will be proposed at the Annual Shareholders' Meeting on May 6 2015.
OPERATIONAL TRENDS BY CATEGORY
CONSUMER CATEGORIES
Stationery
Q1 2015 Stationery Net Sales increased 9.1% as reported and +1.8% on a comparative basis.
Developed markets
- In Europe, Net Sales continued with the strong positive trend (high-single digit growth), driven by both Western and Eastern Europe.
- In North America, BIC maintained market share in an environment where Net Sales were slightly down due to the slow start in the Office Super Stores (market concentration driving store closing and stock rationalization) while our performance was good in other distribution channels.
Developing Markets
Q1 2015 Net Sales decreased low-single digit on a comparative basis.
- Latin America ended the quarter with double-digit growth. Back-to-school was good in the Southern hemisphere, with strong results and market share gains in Brazil.
- The decrease in Net Sales in the Middle-East and Africa was due to seasonal factors (very high comparative basis), while fundamentals remain positive.
- In India, the transition period continues to be challenging. Cello Pens Net Sales declined, due mainly to manufacturing bottlenecks which negatively impacted the fulfillment of customer orders.
Q1 2015 Stationery normalized IFO margin was 13.6% compared to 10.8% in 2014, as a result of favorable fixed costs absorption as well as positive effect of raw materials and FX on Gross Profit.
Lighters
Q1 2015 Lighters Net Sales increased 22.3% as reported and +9.7% on a comparative basis.
Developed markets
- In Europe, Net Sales increased high-single digit. The growth was driven by distribution gains in Western Europe and a strong performance in Eastern Europe.
- In North America, Net Sales increased low-double digit, reflecting both market share gains and buy-in ahead of price adjustment implemented as of April 1, 2015.
Developing Markets
Q1 2015 Net Sales increased high-single digit.
- In Latin America, Net Sales grew mid-single digit, with good performance in Mexico.
- The Middle-East, Africa and Asia performance was notably impelled by distribution gains in Asia (convenient store channel).
Q1 2015 Lighters Normalized IFO was 37.6% compared to 36.6% in 2014. This improvement is due to strong Net Sales growth and positive raw material impact.
Shavers
Q1 2015 Shavers Net Sales increased 26.5% as reported and +14.7% on a comparative basis.
Net sales increased double-digit in all our geographies.
Developed markets
- In Europe, Net Sales growth was driven by the sustained success of our core products such as BIC® 3 in France and BIC® Miss Soleil® in Eastern Europe and by our new shaver for men, BIC® Flex 3 Comfort.
- In North America, we continue to outperform both US and Canadian disposable markets. The solid Q1 sell-in performance benefited from the launch of new products - BIC® Flex 5 for men and BIC® Simply Soleil® Click for women - and the growth of our core products (BIC® Soleil and BIC® Hybrid 3).
Developing Markets
In Latin America, the performance was driven by the success of the BIC® Soleil® and BIC® 3 shavers. We also registered good momentum in the Middle-East and Africa thanks to our single, twin and triple-blade products.
Q1 2015 Shavers normalized IFO margin was 21.3% compared to 17.4% in 2014. The increase in margin was driven by strong Net Sales growth and lower brand support compared to last year.
Other Consumer Products
Q1 2015 Other Consumer Products Net Sales increased 4.1% as reported and decreased 1.6% on a comparative basis. BIC Sport Net Sales grew double-digit on a comparative basis.
Other Consumer Products Q1 2015 Normalized IFO was -0.7 million euros, including expenses related to the portable Fuel Cell project (sold in early April 2015) of 1.1 million euros compared to 2.2 million euros in 2014.
BIC GRAPHIC
Q1 2015 BIC Graphic Net Sales increased 18.3% as reported and 2.4% on a comparative basis.
BIC Graphic confirmed its sales recovery. In Europe, Q1 Net Sales were driven by an increase in writing instrument sales and new product launches. North America was weaker due to a poor end of season performance in the Calendar business while Hard Goods performed in line with expectations. Developing Markets continued to grow.
Q1 2015 Normalized IFO margin was -6.7% compared to -7.2% in 2014, notably reflecting an improvement in Gross Profit.
ACQUISITION - CAPEX - MISCELLANEOUS
FUEL CELL
On April 7, BIC Group announced that following the binding agreement signed on February 27, 2015, BIC's Portable Fuel Cell Technology has been sold to Intelligent Energy for 13 million U.S. dollars (approx. 12.0 million euros[1]) at closing and 2 million U.S. dollars (approx. 1.8 million euros1) in an escrow account at closing to be paid once transition services are completed. The transaction includes all assets (patents and related technology and know-how). The agreement includes a potential earn out up to 7 million U.S. dollars (approx. 6.5 million euros1).
BIC Group Net Sales change by geography
| In million euros | Q1 2014 | Q1 2015 | Change |
| Total Group Net Sales | 434.2 | 510.8 | |
| As reported | +17.6% | ||
| On a comparative basis | +6.8% | ||
| 1 - Europe | 111.4 | 117.6 | |
| As reported | +5.5% | ||
| On a comparative basis | +7.3% | ||
| 2 - North America | 169.4 | 220.9 | |
| As reported | +30.4% | ||
| On a comparative basis | +8.1% | ||
| 3 - Developing Markets | 153.4 | 172.3 | |
| As reported | +12.3% | ||
| On a comparative basis | +5.2% |
Impact of change in perimeter and currency fluctuations
| in % | Q1 2014 | Q1 2015 |
| Perimeter | +5.0 | -0.6 |
| Currencies | -8.2 | +11.4 |
| Of which USD | -1.5 | +9.2 |
| Of which BRL | -2.2 | +0.1 |
| Of which ARS | -2.0 | +0.2 |
| Of which INR | - | +0.9 |
| Of which MXN | -0.4 | +0.5 |
| Of which Russia and Ukraine | -0.2 | -0.5 |
IFO and Normalized IFO by category
| Income From Operations | Normalized Income From Operations | |||
| In million euros | Q1 2014 | Q1 2015 | Q1 2014 | Q1 2015 |
| Group | 72.9 | 97.6 | 73.0 | 101.8 |
| Consumer | 76.7 | 101.7 | 76.7 | 106.0 |
| Stationery | 15.6 | 19.8 | 15.6 | 21.3 |
| Lighters | 48.9 | 61.0 | 48.9 | 61.4 |
| Shavers | 15.5 | 21.4 | 15.5 | 23.9 |
| Others | -3.2 | -0.5 | -3.2 | -0.7 |
| BIC Graphic | -3.8 | -4.1 | -3.7 | -4.1 |
Condensed Profit and Loss Account
| In million euros | Q1 2014[2] | Q1 2015 | Change as reported | Change on a comp. basis |
| NET SALES | 434.2 | 510.8 | +17.6% | +6.8% |
| Cost of goods | 220.9 | 248.5 | ||
| GROSS PROFIT | 213.3 | 262.3 | +23.0% | |
| Administrative & other operating expenses | 140.4 | 164.7 | ||
| INCOME FROM OPERATIONS (IFO) | 72.9 | 97.6 | +33.7% | |
| Finance revenue/costs | +1.5 | +12.7 | ||
| INCOME BEFORE TAX | 74.5 | 110.3 | +48.1% | |
| Income tax | -22.6 | -33.1 | | |
| | | |||
| Income from associates | - | | | |
| GROUP NET INCOME | 51.9 | 77.2 | +48.8% | |
| | | |||
| Non-controlling interest | -1.8 | | | |
| Net Income Group Share | 50.1 | 77.2 | +54.2% | |
| | | |||
| EPS Group Share (in euros) | 1.07 | 1.64 | +53.3% | |
| Total weighted number of shares outstanding adjusted for treasury shares | 46,940,152 | 47,180,664 |
Condensed Balance Sheet
| In million euros | |||
| ASSETS | Mar. 2014[3] | Mar. 2015 | |
| | |||
| Non-current assets | 1,003.7 | 1,146.3 | |
| Current assets | 1,296.9 | 1,548.8 | |
| Of which cash & cash equivalents | 276.3 | 443.7 | |
| TOTAL ASSETS | 2,300.7 | 2,695.1 | |
| LIABILITIES & SHAREHOLDERS' EQUITY | Mar. 2014 | Mar. 2015 | |
| Shareholders' equity | 1,541.4 | 1,795.3 | |
| Non-current liabilities | 362.0 | 457.1 | |
| Current liabilities | 397.3 | 442.7 | |
| TOTAL LIABILITIES & SHAREHOLDERS' EQUITY | 2,300.7 | 2,695.1 | |
Share buy-back program
No share buy-back in Q1 2015.
Capital and voting rights, March 31, 2015
As of March 31, 2015, the total number of issued shares of SOCIÉTÉ BIC is 48,051,695 shares, representing:
- 69,576,188 voting rights,
- 68,801,589 voting rights excluding shares without voting rights.
Total number of treasury shares held at the end of March 2015: 774,599.
Glossary
- At constant currencies: Constant currency figures are calculated by translating the current year figures at prior year monthly average exchange rates.
- Comparative basis: at constant currencies and constant perimeter. Figures at constant perimeter exclude the impacts of acquisitions and/or disposals that occurred during the current year and/or during the previous year, until their anniversary date. All Net Sales category comments are made on a comparative basis.
- Normalized IFO: normalized means excluding non-recurring items.
* *
*
SOCIETE BIC consolidated and statutory financial statements as of March 31, 2015 have been closed by the Board of Directors on April 21, 2015. A presentation related to this announcement is also available on BIC website (www.bicworld.com).
This document contains forward-looking statements. Although BIC believes its expectations are based on reasonable assumptions, these statements are subject to numerous risks and uncertainties. A description of the risks borne by BIC appears in the section, "Risk factors" in BIC's 2014 Registration Document filed with the French financial markets authority (AMF) on March 20 2015.
Contacts
| Investor Relations: +33 1 45 19 52 26 | Press Contacts |
| Sophie Palliez-Capian sophie.palliez@bicworld.com | Albane de La Tour d'Artaise albane.deLaTourDArtaise@bicworld.com |
| Marion Claës marion.claes@bicworld.com | Priscille Reneaume : +33 1 53 70 74 70 preneaume@image7.fr |
| Isabelle de Segonzac : +33 1 53 70 74 70 isegonzac@image7.fr |
For more information, please consult the corporate website: www.bicworld.com
2015 Agenda (all dates to be confirmed)
| 2015 AGM | 06 May 2015 | Meeting - BIC Headquarters |
| 2nd Quarter and 1st Half 2015 results | 30 July 2015 | Conference call |
| 3rd Quarter 2015 results | 21 October 2015 | Conference call |
| FY 2015 results | 17 February 2016 | Meeting - BIC Headquarters |
About BIC
BIC is a world leader in stationery, lighters, shavers and promotional products. For more than 60 years, BIC has honored the tradition of providing high-quality, affordable products to consumers everywhere. Through this unwavering dedication, BIC has become one of the most recognized brands in the world. BIC products are sold in more than 160 countries around the world. In 2014, BIC recorded Net Sales of 1,979.1 million euros. The Company is listed on "Euronext Paris" and is part of the SBF120 and CAC Mid 60 indexes. BIC is also part of the following SRI indexes: Carbon Disclosure Leadership Index (CDLI), FTSE4Good Europe, Euronext Vigeo Europe 120, Ethibel Sustainability Excellence Europe, STOXX ESG Leaders and Gaia Index.
