9M - Q results 22 October 2014

Transcription

1 9M - Q3 results 22 October contact@bicworld.com +33 (0)

2 Group and category highlights Mario Guevara 2

3 Group 9 Months key figures Net Sales: 1,465.3 million euros +4.1% +5.0% Consumer business (88% of total sales) +5.5% Developed markets +5.2% Developing markets +6.2% 0.1% As reported As reported without Cello On a comparative basis* Advertising & Promotional Products (12% of total sales) +1.1% Normalized* Income from Operations: million euros 9M 13 9M % 20.0% 18.9% 19.1% Normalized IFO margin Consumer business 21.9% IFO Margin Normalized IFO Margin Advertising & Promotional Products BIC Graphic 0.6% * See glossary 3

4 Group 9 Months Key figures EPS: 9.1% increase Net Cash Position In euros In million euros M M September 13 December 13 September 14 4

5 9 Months net sales evolution by geographies Change on a comparative basis +11.5% +7.6% +5.0% +4.5% +2.6% +8.7% +3.8% +2.6% +0.7% +1.4% +0.9% +4.8% +9.6% +9.1% +6.3% 0.2% Q1 14 Q2 14 Q3 14 9M 14 Q1 14 Q2 14 Q3 14 9M 14 Q1 14 Q2 14 Q3 14 9M 14 Q1 14 Q2 14Q3 149M 14 See appendix page 25 for main currency impact 5

6 BIC in 9 Months Consumer business 1,283.6 million euros net sales Change on a comparative basis Breakdown by geographies +8.6% +4.9% +2.7% +5.5% Developing Countries 35% Europe 28% Q1 Q2 Q3 9M Europe (9M) North America (9M) +4.5% +5.8% North America 37% Developing Countries (9M) +6.2% 6

7 Stationery market evolution % change vs YAG value Europe USA Office suppliers & traditional stores 47% Retail mass market 53% +17.0% Office supply 30% E commerce 6% Food & Drug 11% Brick & Mortar 53% +2.9% +0.6% +1.7% +2.9% +1.0% +5.0% +2.8% Retail mass market Office suppliers & traditional stores Total E commerce Food & Drug** Brick & Mortar* Office supply Total Sources: US = NPD/IRI ending August // Europe= ending June * Brick & Mortar : Retail & Superstores, including Office Super Stores, Mass Merchandisers, Warehouse Clubs and Dollar Stores ** Food & Drug : other retail outlets and drugstores 7

8 Stationery 2013 Change in net sales on a comparative basis +4.2% +2.3% +8.0% 17.6%16.9% +4.5% 10.1% 12.2% +0.5% +0.3% +0.3% Normalized IFO margin 13.0% 10.5% 14.1% 13.5% In million euros 2.3% Q1 Q2 Q3 9M Net Sales In million euros Q1 Q2 Q3 9M IFO Normalized IFO NET SALES Europe : mid-single digit growth Market shares gain in all countries (especially France, UK and Spain). Good back-to-school season sell-through. Double-digit growth in Eastern Europe. North America: mid-single digit growth Strong back-to-school seasonal and office supply performances. Market shares gains especially in office superstores and office supply. Developing markets: low-single digit growth Latin America: low-single digit Brazil : growth in line with the stationery market. Mexico : highly challenging competitive environment. Middle-East and Africa: low-double digit increase solid performance of the North Africa region (strong back-to-school, particularly in Tunisia). 9 Months Cello figures Net sales: 58.6 million euros (slight decrease) management transition underway adverse macro-economic conditions and extremely competitive environment from both branded and non-branded low-end products (continued price pressure). Income from operations: 10.8 million euros Negatively impacted by sales mix, increased cost of production (mainly due to raw material cost and unfavorable fixed cost absorption), other operating expenses and an increase in brand support. NORMALIZED IFO MARGIN 9 months Stationery normalized IFO margin was 13.5% compared to 14.1% in 9 months 2013, benefiting from the consolidation effect of Cello Pens, more than offset by continued increased investment in brand support mainly in North and Latin America. Q3 normalized IFO margin was 10.5% compared to 13.0% in Q as lower cost of production was offset by other operating expenses and increased brand support. 8

9 Lighters 2013 Change in net sales on a comparative basis +6.4% +6.9% +3.6% +12.7% +9.4% +7.3% +6.6% +8.8% Normalized IFO margin 33.8% 37.1% 38.6%41.1% 39.7% 37.8% 37.4% 38.7% In million euros Net Sales Q1 Q2 Q3 9M In million euros Q1 Q2 Q3 9M IFO Normalized IFO NET SALES Europe: mid-single digit growth Good performance in Q3 in France thanks to market share gains. Solid performance in Eastern and Central Europe. North America: high-single digit growth At the end of August, BIC Products continued to outperform the pocket lighter market. Success of added-value sleeve designs Overall distribution gains. Developing markets: low-double digit growth Overall slowdown of growth in Q3. Continued strong performance : further distribution gains, notably in Mexico and the Middle-East. NORMALIZED IFO MARGIN 9 months Lighters normalized IFO margin was 38.7% compared to 37.4% in 9 months 2013, benefiting from the improvement in Gross Profit margin still driven by favorable geographical mix (strong sales growth in North America and Latin America), positive raw material impact and fixed cost absorption. Q3 Lighters normalized IFO margin was 37.8% compared to 39.7% in Q due to less favorable cost of production compared to last year. 9

10 Shaver market evolution % change vs YAG value Europe USA 60% 40% 60% 40% One Piece Refillable Total 2.4% 1.6% 1.4% 3.1% 4.0% 3.7% 5.2% 2013 YTD August 1.2% 2.0% 3.0% 4.2% 4.6% 2013 YTD August Source: USA: IRI FDMX August Europe: Nielsen YTD August (France, Spain, Italy, Greece) 10

11 Shavers 2013 Change in net sales on a comparative basis +9.5% +6.3% +5.1% +5.1% +3.9% +4.0% +2.1% +0.8% Normalized IFO margin 18.2% 17.7% 14.9% 16.0% 21.1% 19.4% 17.4% 18.4% In million euros Q1 Q2 Q3 9M Net Sales In million euros Q1 Q2 Q3 9M IFO Normalized IFO NET SALES Europe: low-single digit increase Success of our triple-blade core product offerings (BIC 3 shaver for men and BIC Simply Soleil shaver for women). Market share gains in Eastern Europe. North America: mid-single digit increase BIC products sell-through was up high-single digit, significantly out-performing the market in both the men s (BIC Flex 3 and BIC Flex 4) and women s segments (BIC Simply Soleil and BIC Soleil Glow ). Q3 Net Sales (sell-in) impacted by higher promotion activity compared to the same period last year. Developing markets : low-single digit growth Latin America : stable Net Sales. continued growth in Mexico, Brazil and Argentina no sales in Venezuela due to current government restrictions on product importation. market slowdown in Brazil but market share maintained in a highly competitive environment. Middle-East and Africa: high-single digit growth. Continued strong performance in South Africa and the Middle-East countries NORMALIZED IFO MARGIN 9 months Shaver normalized IFO margin was 18.4% compared to 17.4% in 9 months 2013 as a continued result of lower cost of production (better fixed cost absorption and raw material). Q3 Shaver normalized IFO margin was 19.4% compared to 21.1% in Q In Q3, increased in Gross Profit was offset by higher promotional activity and operating expenses. 11

12 Other Consumer Products 2013 Change in net sales on a comparative basis Normalized IFO margin +22.6% 2.6% +13.0% 3.2% +10.8% 2.9% +15.2% 2.9% In million euros Normalized IFO Q1 Q2 Q3 9M IFO In million euros Q1 Q2 Q3 9M Net Sales million euros R&D investments related to the portable fuel cell device project (compared to -6.3 million euros in 9M 2013) 9 Months Result Presentation 12

13 BIC GRAPHIC 2013 Change in net sales on a comparative basis +1.4% +1.9% +0.1% +1.1% Normalized IFO margin 5.8% 5.0% 2.0% 1.3% In million euros 11.2% 6.0% 2.3% 6.2% Q1 Q2 Q3 9M Net Sales In million euros 5.4% 7.2% Q1 1.6% Q2 Q3 0.6% 9M IFO Normalized IFO NET SALES Europe Continued negative impact of product assortment rationalization. New Christmas catalogues well received by customers Heterogeneous performance by regions: Southern Europe was slightly decreasing. Northern European countries such as France and UK showed some improvements. North America: low-single digit growth Performance driven by the Hard Goods segment thanks to the Good Value proposition, new product launches and BritePix imprinted technology. Developing markets: high-single digit growth Good performance in Latin America and the Asia-Pacific region. NORMALIZED IFO MARGIN In 9 months, BIC Graphic normalized IFO margin was -0.6% compared to 1.3% in 9 months Q3 BIC Graphic normalized IFO margin was 5.0% compared to 5.8% in Q3 2013, impacted by mix impact and continued investments in marketing and trade support. 13

14 9 Months consolidated financial figures Jim DiPietro 14

15 9 Months : From Net Sales to EPS BIC Group In million euros 9M M Change Change without Cello Change on a comparative basis* Net Sales 1, , % -0.1% +5.0% Gross Profit % Normalized* IFO % Income from Operations % Tax rate 31.5% 30.0% Net Income Group Share % EPS Group Share % * See glossary 15

16 9 Months Net Sales evolution +5.0% +4.2% +4.1% Change on a comparative basis 5.1% FX impact Cello consolidation impact Change as reported See glossary 16

17 Q3 Normalized* Income From Operations margin 20.4% % At constant perimeter : -1.4 Q Normalized IFO margin Gross Margin and FX impact Brand support OPEX and other expenses Cello consolidation impact Q3 Normalized IFO margin *: see glossary 17

18 9 Months Normalized* Income From Operations margin 18.9% % At constant perimeter : M 2013 Normalized IFO margin Gross Margin and FX impact Brand support OPEX and other expenses Cello consolidation impact 9M Normalized IFO margin *: see glossary 18

19 BALANCE SHEET BIC Group In million euros Dec Sept Dec Sept. Inventories in days 169 Working Capital Of which inventories December 2011 September 2012 December 2012 September 2013 December 2013 September Of which trade and other receivables Receivables in days Of which trade and other payables December 2011 September 2012 December 2012 September 2013 December 2013 September 19

20 Net Cash Position In million euros Net Cash from operating activities: M December 2013 Net Cash Position Operating Cash Flow Change in working capital and others 9M CAPEX Dividend payment Exercise of stock options and liquidity contract Other September Net Cash Position* * Net cash position includes Cello Put options valuation (75.7 million euros) 20

21 Full year outlook Mario Guevara

22 Group 9 Months summary Net sales Mid-single digit growth in Consumer Business Good Q3 performance in Europe, Market share gains in all categories in North America, Continued growth in developing markets, particularly in the Middle-East and Africa. Low-single digit growth in Advertising and Promotional Products business (BIC Graphic) Impact of product rationalization in Europe, Recovery confirmed in North America particularly in hard goods, Solid growth in developing markets. Normalized IFO margin Increase in Consumer Business IFO margin Higher gross profit partially offset by increase in brand support BIC Graphic IFO margin impacted by mix impact, and an increase in marketing and trade support. Net Cash Position Sustained operating cash flow generation (improvement in working capital) 9M CAPEX in line with full year expectations Sustained shareholders remuneration (ordinary dividend) 22

23 outlook unchanged Consumer business In, net sales should grow mid-single digit on a comparative basis and high-single digit at constant currencies (including Cello). Normalized IFO margin is expected close to 2013 s level. Advertising and Promotional Products BIC Graphic BIC Graphic sales should grow low-single digit on a comparable basis and normalized IFO margin should be maintained close to mid-single digit. 23

24 Appendix

25 9M net sales main exchange rate evolution vs. euro % of sales Average rate Q3 13 Average rate Q3 14 % of change US Dollar 44% % Brazilian Real 10% % Mexican Peso 4% % Argentina Peso 1% % Canadian dollar 3% % Australian dollar 2% % South African Zar 1% % Indian ruppee 4% % Non Euro European countries 7% Sw eden % Russia % Poland % British Pound % % of sales Average rate 9M 13 Average rate 9M 14 % of change US Dollar 41% % Brazilian Real 9% % Mexican Peso 5% % Argentina Peso 2% % Canadian dollar 3% % Australian dollar 2% % South African Zar 1% % Indian ruppee 4% % Non Euro European countries 6% Sw eden % Russia % Poland % British Pound % 25

26 GROUP QUARTERLY FIGURES In million euros FY 11 Q1 12 Q2 12 Q3 12 Q4 12 FY 12 Q1 13 Q2 13 Q3 13 9M 13 Q4 13 FY 13 Q1 14 Q2 14 Q3 14 9M 14 Net Sales 1, , , , ,465.3 YoY actual changes YoY actual changes without Cello YoY changes on a comparative basis* -0.4% 8.6% 5.2% 4.4% -1.2% 4.1% -3.7% +1.6% -3.8% -1.9% +3.4% -0.6% +1.3% +5.0% +5.6% +4.1% -3.7% +1.5% +1.4% -0.1% 3.1% 9.0% 3.1% 0.5% -0.4% 2.8% +0.0% +4.1% +3.5% +2.6% +6.7% +3.6% +4.5% +7.6% +2.6% +5.0% IFO Normalized IFO* IFO margin 18.4% 18.2% 23.5% 20.3% 14.5% 19.2% 15.2% 20.3% 20.5% 18.8% 15.5% 18.0% 17.6% 22.9% 18.8% 20.0% Normalized IFO margin* 19.7% 18.0% 23.7% 19.7% 15.9% 19.4% 15.6% 20.3% 20.4% 18.9% 16.3% 18.2% 17.6% 20.7% 18.8% 19.1% Income before tax Net Income Group Share EPS Group Share * See glossary 26

27 GROUP QUARTERLY FIGURES BY GEOGRAPHY In million euros FY 11 Q1 12 Q2 12 Q3 12 Q4 12 FY 12 Q1 13 Q2 13 Q3 13 9M 13 Q4 13 FY 13 Q1 14 Q2 14 Q3 14 9M 14 Europe Net Sales YoY actual changes YoY changes on a comparative basis* % -0.7% -5.7% -9.8% -8.9% -6.4% -1.7% +7.2% -0.8% +2.0% +1.6% +1.9% +1.6% -0.2% +8.5% +3.0% -0.4% +4.3% +0.8% -3.5% -2.7% -0.3% +1.5% +7.6% +1.0% +3.7% +2.5% +3.4% +2.6% +0.7% +8.7% +3.8% North America Net Sales YoY actual changes YoY changes on a comparative basis* % +19.8% +15.2% +11.3% +4.8% +12.4% -2.7% -1.1% -2.2% -2.0% -1.6% -1.9% -3.0% +6.0% +0.4% +1.4% +0.4% +15.3% +2.8% -1.8% +0.5% +3.5% -2.1% +1.1% +3.9% +1.2% +3.5% +1.8% +1.4% +11.5% +0.9% +4.8% Developing markets Net Sales YoY actual changes YoY changes on a comparative basis* % +4.3% +3.6% +8.1% -2.6% +3.1% -6.3% +0.1% -8.7% -5.0% +11.0% -0.8% +6.3% +9.2% +11.7% +9.0% +10.5% +5.8% +5.8% +7.8% +0.1% +4.7% +1.5% +5.2% +4.9% +3.8% +13.7% +6.4% +9.6% +9.1% -0.2% +6.3% * See glossary 27

28 GROUP CONSUMER In million Euros FY 11 Q1 12 Q2 12 Q3 12 Q4 12 FY 12 Q1 13 Q2 13 Q3 13 9M 13 Q4 13 FY 13 Q1 14 Q2 14 Q3 14 9M 14 Net Sales 1, , , , ,283.6 YoY actual changes +3.6% +9.6% +6.4% +5.7% +0.9% +5.6% -2.4% +3.0% -3.1% -0.7% +5.7% +0.8% +1.8% +6.3% +6.2% +4.9% YoY actual changes without Cello YoY changes on a comparative basis* -3.8% +2.4% +1.3% +0.1% +6.3% +10.6% +5.3% +2.9% +2.8% +5.3% +1.8% +5.7% +4.5% +4.1% +8.9% +5.2% +4.9% +8.6% +2.7% +5.5% IFO Normalized IFO* IFO margin 20.8% 22.2% 25.6% 22.4% 15.8% 21.7% 18.5% 23.0% 23.1% 21.6% 17.5% 20.6% 20.9% 26.0% 21.1% 22.9% Normalized IFO margin* 22.0% 21.9% 25.8% 21.7% 16.4% 21.6% 18.5% 22.8% 22.9% 21.5% 17.5% 20.5% 20.9% 23.5% 21.1% 21.9% * See glossary 28

29 STATIONERY In million euros FY 11 Q1 12 Q2 12 Q3 12 Q4 12 FY 12 Q1 13 Q2 13 Q3 13 9M 13 Q4 13 FY 13 Q1 14 Q2 14 Q3 14 9M 14 Net Sales YoY actual changes +1.3% +8.1% +10.2% +0.2% +1.0% +5.0% -6.1% +0.4% -6.6% -3.8% +12.9% -0.2% +11.0% +12.6% +12.5% +12.1% YoY actual changes without Cello YoY changes on a comparative basis* -5.4% +3.3% -0.6% -0.4% +4.1% +7.7% +6.5% -4.7% +1.7% +2.6% -2.3% +2.3% +0.3% +0.3% +8.6% +2.1% +4.2% +8.0% +0.5% +4.5% IFO Normalized IFO* IFO margin 14.0% 16.5% 22.4% 13.6% 4.7% 15.0% 10.1% 17.7% 13.0% 14.1% 9.1% 12.9% 12.2% 18.6% 10.5% 14.2% Normalized IFO margin* 14.0% 16.0% 22.6% 13.1% 5.5% 15.0% 10.1% 17.6% 13.0% 14.1% 8.4% 12.7% 12.2% 16.9% 10.5% 13.5% * See glossary 29

30 LIGHTERS In million euros FY 11 Q1 12 Q2 12 Q3 12 Q4 12 FY 12 Q1 13 Q2 13 Q3 13 9M 13 Q4 13 FY 13 Q1 14 Q2 14 Q3 14 9M 14 Net Sales YoY actual changes YoY changes on a comparative basis* +6.2% +11.2% +7.9% +9.3% 3.5% +7.9% +0.5% +3.4% +0.4% +1.4% +0.6% +1.2% -2.8% +4.4% +5.5% +2.4% +8.6% +9.3% +2.5% +3.2% +2.4% +4.3% +3.6% +6.9% +9.4% +6.6% +8.2% +7.0% +6.4% +12.7% +7.3% +8.8% IFO Normalized IFO* IFO margin 38.9% 37.0% 40.0% 39.1% 34.2% 37.5% 33.7% 38.8% 39.7% 37.4% 36.4% 37.1% 37.0% 46.1% 37.8% 40.4% Normalized IFO margin* 38.9% 37.1% 40.2% 37.7% 34.8% 37.4% 33.8% 38.6% 39.7% 37.4% 35.7% 37.0% 37.1% 41.1% 37.8% 38.7% * See glossary 30

31 SHAVERS In million euros FY 11 Q1 12 Q2 12 Q3 12 Q4 12 FY 12 Q1 13 Q2 13 Q3 13 9M 13 Q4 13 FY 13 Q1 14 Q2 14 Q3 14 9M 14 Net Sales YoY actual changes +6.6% +20.6% +9.2% % +4.4% +13.8% -1.3% +6.0% -3.8% +0.2% +4.1% +1.1% -2.7% -0.6% -0.7% -1.3% YoY changes on a % +18.6% +4.9% comparative basis* % +3.1% +10.1% +2.1% +9.5% +3.9% +5.1% +11.2% +6.5% +5.1% +6.3% +0.8% +4.0% IFO Normalized IFO* IFO margin 18.0% 16.1% 18.0% 22.6% 10.8% 17.2% 14.9% 16.2% 21.1% 17.4% 16.8% 17.3% 18.2% 19.1% 19.4% 18.9% Normalized IFO margin* 18.0% 16.1% 18.2% 21.9% 11.3% 17.1% 14.9% 16.0% 21.1% 17.4% 15.8% 17.0% 18.2% 17.7% 19.4% 18.4% * See glossary 31

32 OTHER CONSUMER PRODUCT In million euros FY 11 Q1 12 Q2 12 Q3 12 Q4 12 FY 12 Q1 13 Q2 13 Q3 13 9M 13 Q4 13 FY 13 Q1 14 Q2 14 Q3 14 9M 14 Net Sales YoY actual changes -5.1% % -33.4% -33.9% -30.5% -31.0% -2.2% +12.0% +7.2% +5.6% +0.9% +4.6% -6.0% -5.8% -3.7% -5.2% YoY changes on a comparative basis* -0.5% +5.9% +17.3% +19.5% +16.8% +14.3% +22.6% +13.0% +10.8% +15.2% +3.9% +12.5% -2.6% -3.2% -2.9% -2.9% IFO * Normalized IFO* * See glossary 9 Months Result Presentation 32

33 BIC GRAPHIC In million euros FY 11 Q1 12 Q2 12 Q3 12 Q4 12 FY 12 Q1 13 Q2 13 Q3 13 9M 13 Q4 13 FY 13 Q1 14 Q2 14 Q3 14 9M 14 Net Sales YoY actual changes YoY changes on a comparative basis* -16.7% +2.1% -1.9% -2.4% -9.2% -3.6% -11.9% -7.5% -7.1% -8.7% -6.4% -8.0% -2.5% -4.4% +1.9% -1.5% -10.4% -0.7% -9.8% -11.3% -12.2% -9.2% -11.2% -6.0% -2.3% -6.2% -2.3% -5.0% +1.4% +0.1% +1.9% +1.1% IFO Normalized IFO* IFO margin 6.1% -7.5% 9.9% 8.4% 8.9% 5.6% -7.9% 1.0% 5.5% 0.1% 6.1% 2.0% -7.3% -1.8% 5.0% -0.7% Normalized IFO margin* 7.8% -7.1% 10.0% 8.4% 13.4% 7.1% -5.4% 2.0% 5.8% 1.3% 11.0% 4.3% -7.2% -1.6% 5.0% -0.6% * See glossary 33

34 9M NET SALES BREAKDOWN By category BIC GRAPHIC 12% STATIONERY 36% OTHER CONSUMER PRODUCTS 4% SHAVERS 19% LIGHTERS 29% 34

35 9M NET SALES BREAKDOWN By geography 31% DEVELOPING MARKETS 27% EUROPE 42% NORTH AMERICA 35

36 Miscellaneous Capital evolution: Authorized share capital at the end of September : 47,923,960 shares Total treasury shares at the end September is 764,

37 Glossary At constant currencies: Constant currency figures are calculated by translating the current year figures at prior year monthly average exchange rates. All net sales category comments are made on a comparative basis. 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. Normalized IFO: normalized means excluding restructuring for BIC Graphic, divestiture and real estate gains and the impact of retiree medical adjustments in the U.S.. 37

38 -2015 AGENDA Full Year Results 11 February 2015 Meeting BIC Headquarters 1 st Quarter 2015 Results 22 April 2015 Conference Call 2015 AGM 06 May 2015 Meeting BIC Headquarters All dates to be confirmed 38

39 Disclaimer 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 section Risks and Opportunities of BIC 2013 Registration Document filed with the French financial markets authority (AMF) on 26 March. 39