BIC : BIC : First Quarter 2013 Results

                    BIC : BIC : First Quarter 2013 Results

                                                     BIC Group - Press Release
                                                                  Clichy - xxx

                                                     BIC Group - Press Release

                                                          Clichy - 25-apr-2013

                    BIC Group - First Quarter 2013 Results

  *Net Sales: 428.6 million euros, flat on a comparative basis^* with a
    good resilience of our Consumer Business despite a challenging comparison

  *Normalized* IFO: 66.7 million euros - Normalized IFO margin: 15.6 %

  *Group Net Income: -20.2% at 45.2 million euros

  *EPS: down 20.8% at 0.95 euros

Q1 2013 Key operational figures

                         Net sales growth on a comparative basis* Normalized
                                                                   IFO margin*
Group                                                        +0.0%    15.6%
Consumer Business                                            +1.8%    18.5%
  *Stationery                                              -2.3%    10.1%
  *Lighters                                                +3.6%    33.8%
  *Shavers                                                 +2.1%    14.9%
Advertising & Promotional                                   -11.2%    -5.4%

Commenting on BIC Group results, Mario Guevara, Chief Executive Officer, said:

"Our  first  quarter  2013  results   showed  contrasted  trends.  Despite   a 
challenging comparison  base, we  managed  to grow  our consumer  business  in 
almost all geographies and notably in Europe and North America. In  developing 
markets the slowdown of Latin America growth was more than offset by the  good 
performance of the Middle-East and Africa regions and by Asia.

In our Consumer  business, full year  2013 net sales  and profitability  goals 
will be in keeping with our medium-term objectives as we continue to invest in
all geographies to enhance future growth.

Despite BIC APP disappointing First Quarter results, we are confident that our
new management will be able to turn the business around".

Full Year 2013 Outlook

Consumer Business
For the full year, we expect net sales on a comparative basis to grow in  line 
with our mid-term objectives of +2% to +4%. Normalized IFO margin should be in
the higher end of 15% to 20% mid-term objectives range.

Advertising and Promotional Products
BIC APP full year 2013 net sales could decline low to mid-single digit. Due to
the sales  decline,  we will  realize  less favorable  volume  absorption  and 
therefore Normalized  IFO margin  could  decline to  mid to  low-single  digit 

^*see glossary page 10

Key figures

                                              FIRST QUARTER
                                        Change as Change at constant Change at
     In million euros       2012  2013  reported     currencies^*      comp.
Net sales                   445.0 428.6     -3.7%              -0.7%     +0.0%
Gross Profit                233.1 210.4     -9.7%
Normalized Income From       79.9  66.7    -16.5%
Normalized IFO Margin       18.0% 15.6%         
Income From Operations       81.1  65.2    -19.5%
IFO Margin                  18.2% 15.2%                                    
Group Net Income             56.7  45.2    -20.2%
Earnings per share           1.20  0.95    -20.8%
                                 BY CATEGORY
Net Sales                   138.1 129.7     -6.1%              -2.3%     -2.3%
IFO                          22.8  13.1
IFO margin                  16.5% 10.1%
Normalized IFO margin       16.0% 10.1%         
Net Sales                   136.7 137.4     +0.5%              +3.6%     +3.6%
IFO                          50.6  46.3
IFO margin                  37.0% 33.7%
Normalized IFO margin       37.1% 33.8%
Net Sales                    92.6  91.4     -1.3%              +2.1%     +2.1%
IFO                          14.9  13.6
IFO margin                  16.1% 14.9%
Normalized IFO margin       16.1% 14.9%
Other Products
Net Sales                    17.5  17.2     -2.2%              -1.2%    +22.6%
Total Consumer business
Net Sales                   384.9 375.7     -2.4%              +0.9%     +1.8%
IFO                          85.6  69.4
IFO Margin                  22.2% 18.5%                                    
Normalized IFO margin       21.9% 18.5%         
Net Sales                    60.1  53.0    -11.9%             -11.2%    -11.2%
IFO                          -4.5  -4.2
IFO margin                  -7.5% -7.9%                                    
Normalized IFO margin       -7.1% -5.4%         

Q1 2013 Group operational trends

Net Sales

BIC Group  Q1 2013  net sales  were  428.6 million  euros, compared  to  445.0 
million euros in 2012, down 3.7%as reported, down 0.7% at constant currencies
and stable on a comparative basis.

  *Total consumer business operations increased 1.8% on a comparative  basis. 
    Europe grew 3.5% driven  by a strong performance  in Eastern Europe and  a 
    good resilience of Western countries. North America grew low-single  digit 
    despite  a  challenging  comparison  base.  Developing  markets  increased 
    low-single digit, with a solid  performance in the Middle-East/Africa  and 
    Asia. Latin America was flat.

  *The Advertising  and  Promotional  Products Business  decreased  11.2%  at 
    constant currencies as  we continued  to be negatively  impacted from  the 
    consequence of  the  ERP implementation  in  North America  and  declining 
    markets in Southern Europe. 

Gross Profit

Q1 2013 gross  profit margin  decreased 3.3 points  to 49.1%  of sales  versus 
52.4% in 2012. Production costs were higher year on year due to  unfavorable 
fixed cost absorption (linked to lower manufacturing activity) and the  impact 
of currency  fluctuations on  purchases, mainly  in Latin  America. This  was 
partially offset by  the non-recurring 2012  Special Premium to  employees^[2] 

Income From Operations and Normalized Income From Operations

In million euros                                               Q1 2012 Q1 2013
Income From Operations                                          81.1    65.2
As % of net sales                                               18.2%   15.2%
  *Non-recurring items                                        -1.1    +1.4
  *Of which restructuring costs                               +0.4    +1.4
  *Of which goodwill and trademarks impairments and related    -0.8      
  *Of which gain on disposal and real estate                  -0.7      
Normalized IFO                                                  79.9    66.7
As % of net sales                                               18.0%   15.6%

The decrease in Normalized IFO margin is due to:

  *Decrease in Gross Profit margin (-3.3 points),

  *Decrease in brand support (+0.4 points),

  *Negative impact of OPEX increase (-1.3 points)

  *Favorable impact of  foreign currency  exchange rate  (+0.8 points)  which 
    partially offset the negative impact in Gross Profit,

  *Positive impact of  Q1 2012 accruals  relative to the  Special Premium  to 
    Employees^2 in OPEX (+1.0 points).

Net Income and EPS

Income before tax decreased 21.4% as  reported to 65.0 million euros. Q1  2013 
finance revenue was -0.3 million euros compared to +1.7 million in Q1 2012 due
to  lower  interest  income  combined  with  less  favorable  monetary  assets 

Q1 2013 Group net income was 45.2 million euros, a 20.2% decrease as reported.
Q1 2013  Group  net  income  included  0.9  million  euros  from  income  from 
associates (Cello Pens). Q12013 earnings per share (EPS) reached 0.95  euros, 
compared to 1.20  euros in  2012, down 20.8%.  Normalized EPS  was 0.97  euros 
compared to 1.19 euros in 2012.

Net cash position

At the end  of March  2013, the  net cash  position was  332.0 million  euros, 
compared to 334.5  million euros  as of December  31, 2012  and 377.2  million 
euros at the end of March 2012.

             Evolution of Q1 net cash position (in million euros)

                                                         Q1 2012 Q1 2013
Net Cash position (beginning of the period)               329.5   334.5
  *Net cash from operating activities                   +52.2   +56.9
      *Of which operating cash flow                     +79.2   +82.6
      *Of which change in working capital               -40.4   -20.2
  *CAPEX                                                -19.3   -27.9
  *Share buy-back                                       -1.2    -41.3
  *Exercise of stock options and liquidity contract    +18.1   +9.4
  *Divestitures and real estate gain                    +2.6      -
  *Others                                               -4.7    +0.4
Net Cash position (end of the period)                     377.2   332.0

Shareholders' remuneration

  *2.56 euros ordinary dividend per share proposed to the 15 May 2013 AGM.

  *41.3 million euros share buy-back at the end of March 2013 (468,044 shares
    bought at an average price of 88.27 euros).

Operational trends by category

Consumer Categories


Q1 2013 Stationery net sales decreased 6.1% as reported and -2.3% at  constant 

Developed countries

  *In Europe,  BIC  continued  to  gain  market  shares  with  net  sales  up 
    low-single digit as the continuing  softness in the Office Supply  Channel 
    was more than compensated by a  good performance in Retail Mass Market  in 
    all regions  and  in particular  in  France and  Eastern  Europe  (Poland, 

  *In North America,  facing a challenging  year-on-year comparison base  (Q1 
    2012 net sales  grew double-digit  due to  strong promotional  campaigns), 
    sell-in decreased low-double digit. Since the beginning of 2013, the total
    U.S. Stationery market was down low-single digit with Office Supply  Super 
    Stores channel down  high-single digit. In  this challenging  environment, 
    BIC^® products performed in line with the market (sell-out).

Developing markets

Q1 2013 net sales were flat.

  *In Latin  America, we  continued to  experience a  slowdown of  stationery 
    market  leading  to   further  adjustments   of  customers'   inventories, 
    particularly in the  Office Product channel  in Mexico and  in Brazil.  In 
    both countries,  we continued  to  gain market  shares (sell-out)  in  the 
    retail mass market channel. Sales remained solid in the rest of the region
    and particularly in Argentina, which was notably driven by the success  on 
    the BIC^® Evolution(TM) range. 

  *Growth in the Middle-East and Africa was driven by a solid  back-to-school 
    in South Africa and a strong performance in the Middle-East countries.

  *Sales grew double digit in Asia.

Q1 2013 Stationery  normalized IFO margin  was 10.1% compared  to 16.0% in  Q1 
2012. Excluding  the  positive impact  of  the Special  Premium  to  employees 
accrued in Q1 2012 (+2.2 points), the decrease is due to lower sales  volumes, 
unfavorable fixed cost absorption (linked to lower manufacturing activity) and
the impact of currency fluctuations on purchases, mainly in Latin America.


Q1 2013 lighters' net sales increased  0.5% as reported and +3.6% at  constant 

Developed markets

  *In Europe, net sales increased low-single digit, driven by solid growth in
    France, Belgium,  Germany  and  the  Eastern  region.  Southern  countries 
    remained soft.

  *In North America, net sales grew high-single digit, reflecting both market
    share gains and the anticipation the anticipation of April announced price
    increase. In the U.S, BIC^®  products continued to out-perform the  pocket 
    lighter market (up low-single digit year-to-date) as we benefited from our
    on-going focus  on  value-added sleeved  products,  led notably  by  40^th 
    anniversary BIC pocket lighter "Flicktacular" designs. 

Developing markets

Q1 2013 net sales were down low-single digit. 

  *In Latin  America, sales  continued  to be  affected by  the  anti-tobacco 
    regulation and  by increases  in cigarette  prices that  were  implemented 
    early in January 2013.  We also experienced  reductions in inventory  from 
    customers in markets such as Mexico and Brazil where the overall  economic 
    trends are slowing down. 

  *Net sales grew strongly in  Asia where we have  started to build both  the 
    BIC^® Lighters brand and distribution.

Q1 2013 Lighters  normalized IFO  was 33.8  % compared  to 37.1%  in Q1  2012. 
Excluding the positive impact of the  Special Premium to employees accrued  in 
Q1 2012 (+1.4 points), the  positive impact of the  increase in net sales  was 
offset by  an increase  in  raw materials  costs  and unfavorable  fixed  cost 


Q1 2013 shavers' net  sales decreased 1.3% as  reported and increased 2.1%  at 
constant currencies.

Developed markets

  *In Europe, net sales increased low-single  digit as we benefited from  the 
    success of value-added triple blade products such as the BIC^® Flex 3 with
    moveable blades. The new BIC^®FlexO3 targeted towards young men is  well 
    received by the trade and  is progressively gaining distribution,  notably 
    in France.

  *In North  America,  net  sales  decreased high-single  digit  as  Q1  2012 
    comparison base was extremely high due to new product pipeline and  strong 
    promotional activity.  Since the  beginning of  2013, we  grew our  market 
    share by 0.2  points (year-to-date  March 30^th)  in the  U.S., despite  a 
    continuous  aggressive  competitive  environment  with  a  high  level  of 
    promotional activity. Our new shaver for women BIC^® Shave & Trim has been
    listed at  major customers  in both  the  U.S and  Canada and  sell-in  is 
    meeting expectations.

Developing markets

Net sales in developing markets grew  low-double digit, with Latin America  up 
high-single digit. In this region, the  performance continued to be driven  by 
our triple blade one-piece  products. The new BIC^®  Flex 4 refillable  shaver 
was launched  in  March  and  has  been  well  received  by  the  distribution 
(sell-din). We  also registered  a  good performance  in the  Middle-East  and 
Africa, notably in South-Africa  thanks to the  growth of our  3 and 4  blades 

Q1 2013 shavers  normalized IFO  was 14.9%  compared to  16.1% in  Q1 2012.  . 
Excluding the positive impact of the  Special Premium to employees accrued  in 
Q1 2012  (+2.4  points), the  decrease  in Normalized  IFO  margin is  due  to 
unfavorable fixed cost absorption (linked to lower manufacturing activity) and
the impact of currency fluctuations.

Other Consumer Products

Other Consumer  Products  net  sales  decreased 2.2%  as  reported,  -1.2%  at 
constant currencies and grew 22.6% on  a comparative basis. Growth was  driven 
by BIC Sport.

Other Consumer Products Normalized IFO was -3.6 million euros compared to -3.5
million euros in  Q1 2012. It  includes the expenses  related to the  portable 
fuel cell project  (-2.5 million euros  compared to -2.9  million euros in  Q1 

Advertising and Promotional Products

Q1 2013  Advertising and  Promotional Products  net sales  decreased 11.9%  as 
reported and -11.2% at constant currencies.

  *In the  U.S.,  BIC  APP  sales continued  to  be  negatively  impacted  by 
    consequences of the service level deterioration experienced during the ERP
    implementation at the end of 2012. 

  *In Europe,  the decrease  in net  sales  was driven  by the  "hard  goods" 
    segment and a significant  part of sales loss  was due to Southern  Europe 
    countries (Spain, Portugal, Greece  and Italy). Net  sales in France  grew 
    slightly despite the challenging business environment.

Q1 2013 BIC  APP Income From  Operations (IFO) includes  1.4 million euros  of 
restructuring costs. Q1  2013 BIC  APP normalized  IFO was  -5.4% compared  to 
-7.1% in Q1  2012. Excluding  the positive impact  of the  Special Premium  to 
employees accrued in  Q1 2012 (+6.2  points), the decrease  in Normalized  IFO 
margin is mainly due to the decrease in net sales.


  *On 22 march 2013, the European  Union Commission published it decision  to 
    extend with  retroactive  effect the  anti-dumping  tax on  Chinese  Flint 
    lighters (expired  in Dec  2012) to  flint lighters  of Vietnamese  origin 
    imported in the European Union between 27 June and 13 December 2012,  that 
    is to say between the  official opening of the anti-circumvention  inquiry 
    and the expiration of the anti-dumping tax on Chinese flint lighters. This
    decision is an official acknowledgement  by the European Union  commission 
    that  some  Chinese  flint   lighters  exporters  have  circumvented   the 
    anti-dumping tax through unjustified  declarations of Vietnam origin.  BIC 
    has always asserted that the anti-dumping tax was massively circumvented.

  *On 12 March 2013,  following a complaint  based on misleading  advertising 
    and unfair competition filed by BIC, Bobigny commercial court has  ordered 
    the  company  Polyflame  to  cease  claiming  compliance  with  ISO   9994 
    international safety  standard  (notably  on  packaging) of  2  out  of  8 
    lighters models targeted in the procedure they market in France. Polyflame
    has filed an appeal against this judgment.

BIC Group net sales change by geography

In million euros       Q1 2012 Q1 2013 Change
Total Group net sales    445.0   428.6
As reported                            -3.7%
At constant currencies                 -0.7%
On a comparative basis                 +0.0%
1 - Europe               111.5   109.6
As reported                            -1.7%
At constant currencies                 -1.6%
On a comparative basis                 +1.5%
2 - North America        179.4   174.6
As reported                            -2.7%
At constant currencies                 -2.1%
On a comparative basis                 -2.1%
3 - Developing Markets   154.1   144.4
As reported                            -6.3%
At constant currencies                +1.5%
On a comparative basis                +1.5%

Impact of change in perimeter and currency fluctuations

in %         Q1 2012 Q1 2013
Perimeter       -1.9    -0.7
Currencies      +1.5    -3.0
Of which USD    +1.6    -0.2
Of which BRL    -0.2    -1.4
Of which ARS    -0.2    -0.7

IFO and Normalized IFO by category

                Income From Operations Normalized Income From Operations
In million euros   Q1 2012    Q1 2013       Q1 2012          Q1 2013
Group               81.1        65.2          79.9             66.7
Consumer            85.6        69.4          84.2             69.6
Stationery          22.8        13.1          22.1             13.1
Lighters            50.6        46.3          50.7             46.4
Shavers             14.9        13.6          14.9             13.6
Other               -2.7        -3.6          -3.5             -3.6
APP                 -4.5        -4.2          -4.3             -2.9

Condensed Profit and Loss Account

                                                           Change at   Change
In million euros           Q1 2012    Q1 2013   Change as   constant    on a
                                                reported  currencies*   comp.
NET SALES                      445.0      428.6     -3.7%    -0.7%       +0.0%
Cost of Goods                  211.9      218.3     +3.0%
GROSS PROFIT                   233.1      210.4     -9.7%
Administrative & other         152.0      145.2     -4.5%
operating expenses
INCOME FROM OPERATIONS          81.1       65.2    -19.5%
Finance revenue                  3.2        1.9
Finance costs                   -1.5       -2.2
INCOME BEFORE TAX               82.7       65.0    -21.4%
Income tax                     -26.8      -20.7
Income from associates           0.8        0.9
GROUP NET INCOME                56.7       45.2    -20.2%
EARNINGS PER SHARE (EPS)        1.20       0.95
(in euros)
Total weighted number of
shares outstanding        47,171,050 47,441,028
adjusted for treasury

Condensed Balance Sheet

In million euros
ASSETS                                   Mar. 2012   Mar. 2013
Non-current assets                           871.7       966.6
Current assets                             1,277.4     1,264.7
 Of which Cash & Cash Equivalents           349.7      284.5
TOTAL ASSETS                               2,149.1     2,231.3
LIABILITIES & SHAREHOLDERS' EQUITY       Mar. 2012   Mar. 2013
Shareholders' equity                       1,528.2     1,529.5
Non-current liabilities                      284.5       376.0
Current liabilities                          336.4       325.8

Share buy-back program

              Number of shares bought Average weighted price in € Amount in M€

January 2013                        -                           -            -
February 2013                 341,432                       87.89         30.0
March 2013                    126,612                       89.28         11.3
Total Q1 2013                 468,044                       88.27         41.3

Capital and voting rights, March 31, 2013

As of March  31, 2013, the  total number of  issued shares of  SOCIÉTÉ BIC  is 
Total treasury shares at the end March 2013 is 1,246,572.


  *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  at  constant 
    currencies or 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,  BIC   APP 
    integration plan expenses, and in Q1 2012 gain on disposal of phone  cards 
    activity in France and real estate gains.



                                    *  *




SOCIETE BIC  consolidated financial  statements, as  of March  31, 2013,  were 
closed by the Board of Directors on April 24, 2013

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, "Risks  and 
Opportunities" in  BIC's  2013 Registration  Document  filed with  the  French 
financial markets authority (AMF) on March 27, 2013.



Investor Relations: +33 1 45 19 52 26        Press: +33 1 53 70 74 48
Sophie Palliez-Capian                        Priscille Reneaume        
                                             Isabelle de Segonzac
                                             Claire Doligez

For more information, please consult the corporate web site:

2013 Agenda (all dates to be confirmed)

2012 AGM                             May, 15 2013     BIC Headquarters, Clichy
2^nd Quarter and 1^st Half 2013     August 1, 2013   Conference call
3^rd Quarter 2013 results            October 23, 2013 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 
2012, BIC recorded net sales of  1,898.7 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:  FTSE4Good Europe,  ASPI  Eurozone, 
Ethibel Excellence Europe, Gaia Index and Stoxx Global ESG Index.

[1]^*see glossary page 10

[2]In Q1 2012, 11.0 million euros accruals were booked following the decision
to pay  a special  premium to  all BIC  employees who  have not  been  granted 
performance share  plans in  2011. The  final expense  was 8.8  million  euros 
(fully paid in Q2 2012).

BIC: First Quarter 2013 Results


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