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BIC GROUP - SECOND QUARTER AND FIRST HALF 2015 RESULTS
First Half Net Sales: 1,134.0 million euros, up 17.1% as reported and +6.3% on a comparative basis*
o Consumer business up 6.8% on a comparative basis
o BIC Graphic up 2.1% on a comparative basis
First Half Normalized* IFO: 239.2 million euros, up 29.6%
o Normalized IFO margin: 21.1% (vs. 19.1% for H1 2014)
First Half Net Income Group Share: 176.6 million euros, up 30.1%
o EPS Group Share: 3.74 euros, up 29.4%
June 2015 Net Cash position: 223.7 million euros
H1 2015 Key operational figures
Net Sales growth on a comparative basis* | Normalized IFO margin* | |||
Q2 | H1 | Q2 | H1 | |
Group | +5.8% | +6.3% | 22.0% | 21.1% |
Consumer business | +6.3% | +6.8% | 25.3% | 24.5% |
Stationery Lighters Shavers | +2.5% +9.3% +9.5% | +2.2% +9.5% +12.0% | 17.1% 41.6% 19.1% | 15.7% 39.7% 20.2% |
BIC Graphic | +1.8% | +2.1% | -3.0% | -4.7% |
Commenting on BIC Group results, Mario Guevara, Chief Executive Officer, said: "Our H1 2015
Results were particularly strong as a result of Stationery sell-in for Europe's Back to School and solid sales growth in Lighter and Shaver.
In light of the 6 month performance, we are very confident to achieve our full year Net Sales growth (+4% to +5% on a comparative basis) and, despite planned H2 2015 Brand Support investments and timing of Operating Expenses, we now expect Group 2015 Normalized IFO margin to show a slight increase compared to last year."
* See glossary page 12
BIC Group - Press Release - Page 1 of 12
KEY FIGURES
In million euros See glossary page 12 | SECOND QUARTER | FIRST HALF |
In million euros See glossary page 12 | Change Change Change at on a 2014* 2015 as constant comp. reported currencies basis | Change Change at Change 2014* 2015 as constant on a reported currencies comp. basis |
GROUP | ||
Net Sales Gross Profit Normalized Income From Operations Normalized IFO Margin Income From Operations IFO Margin Net Income Group Share Earnings Per Share Group Share (in euros) | 534.3 623.1 +16.6% +5.2% +5.8% 263.6 307.4 +16.6% 111.6 137.4 +23.1% 20.9% 22.0% 123.7 143.9 +16.4% 23.1% 23.1% 85.6 99.3 +16.0% 1.82 2.10 +15.4% | 968.5 1,134.0 +17.1% +5.6% +6.3% 476.9 569.8 +19.5% 184.6 239.2 +29.6% 19.1% 21.1% 196.6 241.5 +22.8% 20.3% 21.3% 135.7 176.6 +30.1% 2.89 3.74 +29.4% |
BY CATEGORY | ||
Stationery Net Sales IFO IFO margin Normalized IFO margin Lighters Net Sales IFO IFO margin Normalized IFO margin Shavers Net Sales IFO IFO margin Normalized IFO margin Other Products Net Sales Total Consumer business Net Sales IFO IFO Margin Normalized IFO margin | 212.0 233.2 +10.0% +1.1% +2.5% 40.0 40.7 18.9% 17.5% 17.2% 17.1% 145.8 178.4 +22.4% +9.3% 67.4 75.6 46.3% 42.3% 41.2% 41.6% 98.1 117.8 +20.0% +9.5% 18.9 23.4 19.3% 19.8% 18.0% 19.1% 19.1 22.3 +16.8% +8.5% 475.0 551.7 +16.2% +5.6% +6.3% 124.7 144.5 26.3% 26.2% 23.7% 25.3% | 355.9 390.3 +9.7% +0.5% +2.2% 55.6 60.5 15.6% 15.5% 14.6% 15.7% 279.4 341.9 +22.4% +9.5% 116.3 136.6 41.6% 39.9% 39.0% 39.7% 187.0 230.2 +23.1% +12.0% 34.4 44.7 18.4% 19.4% 17.7% 20.2% 35.2 39.1 +11.0% +3.9% 857.5 1,001.5 +16.8% +6.1% +6.8% 201.4 246.2 23.5% 24.6% 22.1% 24.5% |
BIC Graphic Net Sales IFO IFO margin Normalized IFO margin | 59.3 71.4 +20.4% +1.8% -1.0 -0.6 -1.8% -0.9% -1.6% -3.0% | 111.0 132.5 +19.4% +2.1% -4.8 -4.7 -4.3% -3.6% -4.2% -4.7% |
*: restated from IFRIC 21
BIC Group - Press Release - Page 2 of 12
Net Sales
For the First Half 2015, Net Sales were 1,134.0 million euros up 17.1% as reported, +5.6% at constant currency, and +6.3% on a comparative basis. The positive impact of currency fluctuations (+11.5%) was due to the increase of the USD versus the EUR.
Consumer business grew 6.8% on a comparative basis with a solid performance across all geographies (Europe +6.4%, North America +8.0%, Developing Markets +5.9%).
BIC Graphic Net Sales increased 2.1% on a comparative basis.
Gross Profit margin
H1 2015 Gross Profit margin increased 1.0 point to 50.2% of sales versus 49.2% in 2014, benefiting from favorable FX and raw material impacts.
Income From Operations and Normalized Income From Operations
H1 2015 Normalized IFO was 239.2 million euros (21.1% normalized IFO margin). Consumer business normalized IFO margin was 24.5%, an increase of 2.4 points, driven notably by higher Gross Profit and a decrease in expenses related to the portable Fuel Cell project (sold in early April 2015). BIC Graphic normalized IFO margin decreased 0.5 point to -4.7%.
The key components of the change in Normalized IFO margin were:
In points | H1 2014 vs. 2013 | H1 2015 vs. 2014 |
Change in Gross Profit margin Brand support OPEX and other expenses | +1.4 - -0.2 | +1.0 +0.3 +0.7 |
Total impact | +1.2 | +2.0 |
Non-recurring items
BIC Group - Press Release - Page 3 of 12
Net Income and EPS
Income before tax increased 27.8% as reported to 253.3 million euros. Net finance revenue increased to 11.8 million euros compared to 1.5 million euros in H1 2014 due to the favorable revaluation of financial assets denominated in USD.
Net income Group share was 176.6 million euros, a 30.1% increase as reported. The tax rate was
30.0%.
EPS Group share was 3.74 euros compared to 2.89 euros in H1 2014, up 29.4%. Normalized EPS Group share increased 36.9% to 3.71 euros compared to 2.71 euros in H1 2014.
Net cash position
At the end of June 2015, the net cash position was 223.7 million euros of which -83.3 million euros from the Cello Pens put option valuation.
Evolution of Net Cash Position (in million euros)
H1 2014 | H1 2015 | |
Net Cash position at the beginning of the period (December) | 196.7 | 320.2 |
Net cash from operating activities +82.0 +93.1 o Of which operating cash flow +183.6 +239.4 o Of which change in working capital and others -101.6 -146.3 CAPEX -50.9 -50.7 Dividend payment -122.4 -134.8 Share buy-back program - -26.3 Cash received from the exercise of stock options +10.4 +8.0 and liquidity contract Total Fuel Cell divestiture1 - +14.0 Others -5.8 +0.2 | ||
Net Cash position at the end of the period (June) | 110.0 | 223.7 |
The net cash from operating activities was +93.1 million euros with +239.4 million euros in cash flow from operations and a change in working capital of -146.3 million euros, impacted by the increase in inventories in line with the expected sales activity for the balance of the year and by the increase in receivables linked to the strong level of sales in the first half.
Shareholders' remuneration
Dividend: 134.8 million euros (2.85 euros ordinary dividend per share paid in May 2015) Share buy-back: 26.3 million euros (180,213 shares bought in May 2015)
1 See page 7
BIC Group - Press Release - Page 4 of 12
OPERATIONAL TRENDS BY CATEGORY CONSUMER CATEGORIESStationery
First Half 2015 Stationery Net Sales increased 9.7% as reported and +2.2% on a comparative basis. Second quarter 2015 Net Sales were up 10.0% as reported and up +2.5% on a comparative basis.
Developed markets
In Europe, Net Sales grew high-single digit. The positive trend of the first quarter proved to be resilient, driven by a strong back-to-school sell-in in all countries, double digit growth in Eastern Europe and the good performance of our new products.
In North America, the slight decrease of Net Sales was mostly due to timing (in 2014, early back-to-school shipments registered in June while registered in July this year). In an environment of continued trade consolidation in Office Super Stores, the market grew mid-single digit (end of May 2015) and we outperformed due to the success of our Champion brand strategy reinforced
with new product introductions which include BIC® Atlantis Exact, BIC® Atlantis Ultra-Comfort and
BIC® X-tra fun graphite pencils.
Developing Markets
H1 2015 Net Sales were flat.
Latin America ended the semester with high-single-digit growth. In Brazil, BIC became the leader of the Coloring segment in Modern Mass Market. In Mexico, we had good sell-in performance for back-to-school, supported by strong trade and consumer plans.
In the Middle East and Africa region, BIC continued to grow distribution and sales, reinforcing its leading position in key Sub-Saharan markets thanks to strong consumer support and in-store activities, while managing business model changes towards more proximity in selected markets.
In India, Cello Pens First Half Net Sales declined low-single digit, the solid second quarter Net Sales growth nearly offset the negative Q1 performance. The local team continues to work on bringing manufacturing safety and quality standards to BIC's levels.
H1 2015 Stationery normalized IFO margin was 15.7% compared to 14.6% in 2014, mainly benefiting from favorable fixed costs absorption and a positive FX effect on Gross Profit. Q2 2015 normalized IFO margin was 17.1% compared to 17.2% in Q2 2014.
Lighters
First Half 2015 Lighters Net Sales increased 22.4% as reported and +9.5% on a comparative basis. Second quarter Net Sales were up 22.4% as reported and +9.3% on a comparative basis.
Developed markets
In Europe, Net Sales increased mid-single digit. The growth was mainly driven by market share gains in both Western and Eastern Europe.
In North America, Net Sales increased high-single digit, reflecting the impact of the April 1st
2015 price adjustment, distribution depth improvements and the success of our added-value sleeved lighters.
Developing Markets
H1 2015 Net Sales increased double digit.
In Latin America, Net Sales grew double digit with distribution gains in Mexico and Brazil.
In the Middle East, Africa and in Asia, Net Sales grew double digit thanks to improved distribution.
H1 2015 Lighters Normalized IFO was 39.7% compared to 39.0% in 2014. This improvement is due to strong Net Sales growth. Q2 2015 Normalized IFO margin was 41.6% compared to 41.2% in Q2 2014.
BIC Group - Press Release - Page 5 of 12
Shavers
First Half 2015 Shavers Net Sales increased 23.1% as reported and +12.0% on a comparative basis. Second quarter Net Sales were up 20.0% as reported and +9.5% on a comparative basis.
Developed markets
In Europe, Net Sales increased high-single digit, driven by good performances in Western
Europe and increased distribution in Eastern Europe.
In North America, Net Sales increased double digit. The performance was driven by a very strong new product pipeline (BIC® Flex 5, BIC® Simply Soleil Click) combined with the continued success of our high quality shave at a fair price positioning, across our entire range. In May 2015, the new BIC® Flex 5 was ranked as Number 2 in volume for the 5 blade one-piece shavers in the U.S.
Developing Markets
H1 2015 Net Sales increased double digit. The Middle East and Africa achieved double digit growth thanks to a successful communication campaign during the Africa Cup of Nations. Net Sales growth in Latin America was driven by market share gains in Mexico and the success of added value shavers, mainly BIC® Soleil®, in Brazil.
H1 2015 Shavers normalized IFO margin was 20.2% compared to 17.7% in 2014. The increase in margin was driven by strong Net Sales growth, positive FX impact on Gross Profit and timing of operating expenses compared to last year. Second quarter Shaver Normalized IFO margin was 19.1% compared to 18.0% as of Q2 2014.
Other Consumer Products
H1 2015 Other Consumer Products Net Sales increased 11.0% as reported and +3.9% on a comparative basis. Second quarter Net Sales were up 16.8% as reported and +8.5% on a comparative basis.
H1 2015 BIC Sport Net Sales grew double digit on a comparative basis.
Other Consumer Products H1 2015 Normalized IFO was 2.2 million euros, compared to -4.8 million euros in H1 2014, which included expenses related to the portable Fuel Cell project (sold in early April
2015).
First Half 2015 BIC Graphic Net Sales increased 19.4% as reported and +2.1% on a comparative basis. Second quarter 2015 Net Sales were up 20.4% as reported and +1.8% on a comparative basis.
BIC Graphic confirmed FY 2014 and Q1 2015 positive momentum. Net Sales were driven by an overall good performance in key European countries such as the UK, Spain and Germany. North America sales were flat. Developing Markets continued to grow.
H1 2015 Normalized IFO margin was -4.7% compared to -4.2% in 2014, due to our continued reinvestments in the business for the long-term. Q2 2015 BIC Graphic Normalized IFO margin was -3.0% compared to -1.6% in Q2 2014.
BIC Group - Press Release - Page 6 of 12
Full Year 2015 Outlook (revised)Group Net Sales should grow between 4% and 5% on a comparative basis.
In light of the 6 month performance and despite planned H2 2015 Brand Support investments and timing of Operating Expenses, the Group Normalized IFO margin is expected to slightly increase compared to last year.
On April 7, BIC Group announced that, following the binding agreement signed on February 27, 2015, BIC's Portable Fuel Cell Technology had been sold to Intelligent Energy for 14 million euros. The transaction includes all assets (patents and related technology and know-how). The agreement includes a potential earn out of up to 7 million U.S. dollars (approx. 6.5 million euros1).
1 1.0830 USD = 1 EUR ECB reference rate at 02-APR-2015
BIC Group - Press Release - Page 7 of 12
BIC GROUP NET SALES CHANGE BY GEOGRAPHY
In million euros
IMPACT OF CHANGE IN PERIMETER AND CURRENCY FLUCTUATIONS
in %
Perimeter
IFO AND NORMALIZED IFO BY CATEGORY
BIC Group - Press Release - Page 8 of 12
CONDENSED PROFIT AND LOSS ACCOUNT
In million euros
1 Restated from IFRIC 21
BIC Group - Press Release - Page 9 of 12
CONDENSED BALANCE SHEET
In million euros (rounded figures)
Net cash reconciliation In million euros (rounded figures) | June 2014 | June 2015 |
Cash and cash equivalents (1) Other current financial assets (2) Current borrowings (3) Non-current borrowings (4) NET CASH POSITION (1) + (2) - (3) - (4) | 253 52 123 72 110 | 356 53 100 85 224 |
1 Restated from IFRIC 21 and the Cello Pens goodwill finalization
BIC Group - Press Release - Page 10 of 12
CASH FLOW STATEMENT
In million euros (rounded figures)
OPENING CASH AND CASH EQUIVALENTS | 241 |
Net increase / decrease cash and cash equivalents (A+B+C) | (25) |
Exchange difference | 10 |
CLOSING CASH AND CASH EQUIVALENTS | 226 |
SHARE BUY-BACK PROGRAM
Number of shares bought | Average weighted price in € | Amount in M€ | |
May 2015 | 180,213 | 146.00 | 26.3 |
CAPITAL AND VOTING RIGHTS, JUNE 30, 2015
As of June 30, 2015, the total number of issued shares of SOCIÉTÉ BIC is 48,091,465 shares, representing:
69,612,210 voting rights,
68,652,939 voting rights excluding shares without voting rights.
Total number of treasury shares held at the end of June 2015: 959,271.
1 Restated from IFRIC 21
BIC Group - Press Release - Page 11 of 12
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 June 30, 2015 have been closed by the Board of Directors on July 29, 2015. The auditors have performed their limited review procedures on these financial statements and the limited review report on the condensed financial statements is being issued. The
2015 half-year Financial report will be filed with the French financial markets authority (AMF) and available online on BIC's website (www.bicworld.com), headline Finance, on July 31, 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 20 March 2015.
Contacts
Investor Relations: +33 1 45 19 52 26 Press Contacts
Sophie Palliez-Capian sophie.palliez@bicworld.com
Marion Claës marion.claes@bicworld.com
Albane de La Tour d'Artaise albane.deLaTourDArtaise@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)
3rd Quarter 2015 results | 21 October 2015 | Conference call |
FY 2015 results | 17 February 2016 | Meeting - BIC Headquarters |
1st Quarter 2016 results | 27 April 2016 | Conference call |
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.
BIC Group - Press Release - Page 12 of 12
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