Societe Bic Sa · EURONEXT:BB
Societe Bic Sa — BIC — Q3 2023 Earnings Presentation
32 slides from Societe Bic Sa's earnings presentation, Oct 26, 2023
Slide 1: Third Quarter 2023 Results Presentation
OCTOBER 26, 2023 Third Quarter 2023 Results Presentation 1
Slide 2: Third Quarter and Nine Months 2023
Third Quarter and Nine Months 2023 Gonzalve Bich Chief Executive Officer 2
Slide 3: Nine-months 2023 Key Takeaways
Nine-months 2023 Key Takeaways • Profitable growth across all divisions through enhanced execution of Horizon Plan • Revenue Growth Management delivered 15% YTD increase in net sales per SKU ahead of plan • Consumer-centric portfolio and product innovations drove growth and market share • Solid 9-mo
Slide 4: Operational and Consolidated Results
Third Quarter and Nine Months 2023 Operational and Consolidated Results Chad Spooner Chief Financial Officer 4 4
Slide 5: Nine Months 2023 Key Financial Figures
Nine Months 2023 Key Financial Figures Net Sales Adjusted EBIT Adjusted EPS Free Cash Flow* €1,737.3m €260.4m €4.43 €142.2m Change at Constant Change as reported Change as reported Net Cash Position Currencies (3.0)% (2.2)% €308.3m +7.1% Change on a aEBIT Margin Comparative basis 15.0% +3.8% * Free
Slide 6: Nine Months 2023 Division Snapshot
Nine Months 2023 Division Snapshot Human Expression Flame for Life Blade Excellence €675.0m Net Sales €634.4m Net Sales €407.4m Net Sales +7.6%* +1.7%* +15.6%* €60.6m aEBIT €221.4m aEBIT €46.5m aEBIT 9.0% margin 34.9% margin 11.4% margin Double-digit net sales Market share gains in all Double digit
Slide 7: Third Quarter 2023 Net Sales Evolution
Third Quarter 2023 Net Sales Evolution in million euros +3.2 pts -6.9 pts +0.0 pts +0.3 pts* 580,1 18,3 0,4 1,5 560,3 40,0 -3.4% as reported Q3 2022 Net Sales Change on a FX impact Perimeter impact Argentina Q3 2023 Net Sales as reported comparative basis as reported * Argentina increase at Constant
Slide 8: Nine Months 2023 Net Sales Evolution
Nine Months 2023 Net Sales Evolution in million euros +3.8 pts -2.6 pts +0.1 pts +0.5 pts* 1 707,2 64,0 3,4 8,4 1 737,3 45,8 +1.8% as reported 9M 2022 Net Sales Change on a FX impact Perimeter impact Argentina 9M 2023 Net Sales as reported comparative basis as reported * Argentina increase at Consta
Slide 9: Third Quarter 2023: Key Components of Change in Adjusted EBIT
Third Quarter 2023: Key Components of Change in Adjusted EBIT 15.2% -0.7 pts -0.8 pts 11.3% 5.4 pts Q3 2022 Adjusted EBIT Change in Gross Profit Increase in Brand Support Increase in OPEX and Other Q3 2023 Adjusted EBIT Expenses 9
Slide 10: Nine Months 2023: Key Components of Change in Adjusted EBIT
Nine Months 2023: Key Components of Change in Adjusted EBIT 15.7% 15.0% -0.5 pts 1.5 pts -1.7 pts 9M 2022 Adjusted EBIT Change in Gross Profit Increase in Brand Support Increase in OPEX and Other 9M 2023 Adjusted EBIT Expenses 10
Slide 11: Nine Months 2023 from Adjusted EBIT to Net Income
Nine Months 2023 from Adjusted EBIT to Net Income in million euros 9M 2022 9M 2023 Adjusted EBIT* 268.5 260.4 9M 2023 Non-recurring items included: Non-recurring items (6.6) (4.1) €(0.6)m related to Lucky Stationary Ltd (Nigeria) and Rocketbook earnout and EBIT 261.9 256.3 acquisition costs €(3.5)m
Slide 12: Working Capital
Working Capital in million euros Receivables in Days* 27,6 26,9 93,2 5,3 3,5 655,0 73 61 72 562,6 3,3 Sep-22 Dec-22 Sep-23 Inventories in Days** 200 186 186 Sep-22 Dec-22 Sep-23 Dec-22 Net Inventory Trade & other Trade & other Other Investing FX & others Sep-23 Receivables Payables receivables Activ
Slide 13: Nine Months 2023 Net Cash Position
Nine Months 2023 Net Cash Position in million euros 147.8 359,3 69,3 359,9 Net Cash 110,2 from Operating Activities €211.5m 97.3 13.7 308,3 Free Cash Flow: €142.2m December 2022 Net Operating cash flow Change in working CAPEX Dividend paid Share buyback net Others September 2023 Net Cash Position ca
Slide 14: 2023 Outlook Confirmed
2023 Outlook Confirmed Full Year 2023 Net Sales are expected Free Cash Flow is to grow between expected to be +5% and +7% at above €200 million constant currencies We expect to in 2023, for the driven by price and improve adjusted fifth year in a row mix EBIT and adjusted EBIT margin in Full Year 20
Slide 15: Thank You
THANK YOU 15
Slide 16: Appendix
APPENDIX 16
Slide 17: 2023 Market Assumptions
2023 Market Assumptions* Stationery Lighters Shavers (pocket) (disposable) Flat to low-single digit EUROPE Low to mid-single digit decrease decrease NORTH AMERICA Low to mid-single digit decrease Mid to high-single digit LATIN AMERICA Low to mid-single digit increase increase INDIA Mid to high-singl
Slide 18: 2023 Main Net Sales, Adjusted EBIT and Free Cash Flow Drivers
2023 Main Net Sales Adjusted EBIT and Free Cash Flow Drivers Organic Growth RGM Line Extensions & Market Share Gains (Price. Mix and Promotions) New Products Net Sales Gross Profit Adjusted EBIT ✓ Price and Mix increases ✓ Gross Profit expansion ✓ Manufacturing efficiencies Increase in Brand Suppo
Slide 19: Nine Months 2023 Net Sales Breakdown
Nine Months 2023 Net Sales Breakdown By Category By Geography Other products Blade 1% North America Excellence Human Europe 39% 23% Expression 30% 39% Asia & Oceania Latin America Flame for Life (Including Middle East 19% 37% India) & Africa 5% 7% 19
Slide 20: Sensitivity to Net Sales and Income before Tax: USD/EUR Fluctuation
Sensitivity to Net Sales and Income before Tax: USD/EUR Fluctuation Sensitivity to Net Sales and Income Before Tax (IBT) of USD-EUR fluctuation 9M 2022 9M 2023 in % +/- 5% change in USD impact on Net Sales 2.1 2.0 +/- 5% change in USD impact on IBT 1.2 1.0 20
Slide 21: Nine Months 2023 Foreign Currencies Impact on Net Sales
Nine Months 2023 Foreign Currencies Impact on Net Sales Total impact: -2.6 pts* 0,6 0,1 USD BRL MXN CAD ZAR NGN TRY INR RUB/UAH Other -0,2 -0,2 -0,2 -0,3 -0,4 -0,5 -0,7 -0,8 * Excluding ARS 21
Slide 22: Main Exchange Rate Evolution vs Euro
Nine Months 2023 Net Sales Main Exchange Rate Evolution vs Euro Average rates % of sales 9M 2022 9M 2023 % of change US Dollar 39% 1.06 1.08 -1.85% Brazilian Real 9% 5.45 5.42 0.55% Mexican Peso 5% 21.55 19.26 11.89% Argentina Peso 2% 127.39 266.29 -52.16% Canadian dollar 3% 1.36 1.46 -6.85% Austral
Slide 23: Group Quarterly Figures
Group Quarterly Figures In million euros Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 ** FY 22 ** Q1 23 Q2 23 Q3 23 Net Sales 411.0 505.7 478.4 436.8 1,831.9 515.7 611.4 580.1 526.7 2,233.9 538.7 638.2 560.3 YoY actual changes +15.1% +20.7% +8.2% +6.5% +12.5% +25.5% +20.9% +21.3% +20.6% +21
Slide 24: Group Quarterly Figures by Geography
Group Quarterly Figures by Geography In million euros Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Q1 23 Q2 23 Q3 23 Europe Net Sales 125.2 166.8 155.4 123.1 570.6 142.8 185.1 169.6 139.1 636.7 151.5 202.3 170.7 YoY actual changes +5.2% +20.3% +5.6% +9.6% +10.3% +14.0% +11.0% +9.1% +1
Slide 25: Human Expression
Human Expression In million euros Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Q1 23 Q2 23 Q3 23 Net Sales 131.1 202.2 197.5 153.1 683.8 168.3 269.7 225.2 175.6 838.8 177.5 282.9 214.7 YoY actual changes +3.3% +21.2% +22.4% +27.0% +18.8% +28.4% +33.4% +14.1% +14.7% +22.7% +5.4% +4.9%
Slide 26: Flame for Life
Flame for Life In million euros Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Q1 23 Q2 23 Q3 23 Net Sales 174.5 192.9 170.7 180.4 718.5 226.4 209.7 216.0 219.6 871.6 228.5 205.8 200.1 YoY actual changes +44.2% +31.0% (0.2) % +0.9% +16.2% +29.7% +8.7% +26.5% +21.7% +21.3% +0.9% (1.8) %
Slide 27: Blade Excellence
Blade Excellence In million euros Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Q1 23 Q2 23 Q3 23 Net Sales 96.4 104.0 104.6 96.2 401.2 113.5 126.8 132.6 124.0 497.0 124.7 143.6 139.1 YoY actual changes (5.5) % +5.4% +1.6% (4.4) % (0.7) % +17.7% +22.0% +26.8% +28.9% +23.9% +9.9% +13.3%
Slide 28: Other Products
Other Products In million euros Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Q1 23 Q2 23 Q3 23 Net Sales 9.0 6.6 5.7 7.1 28.4 7.6 5.2 6.3 7.5 26.6 8.1 5.9 6.5 YoY actual changes +29.4% +8.7% (14.9) % (31.1) % (5.3) % (16.5) % (21.1) % +11.5% +5.9% (6.4) % +6.8% +13.2% +2.9% YoY change
Slide 29: Unallocated Costs
Unallocated Costs In million euros Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Q1 23 Q2 23 Q3 23 EBIT 146.8 (16.5) (16.3) (22.4) 91.6 (20.3) (18.8) (21.1) (22.8) (83.0) (21.2) (21.1) (24.1) Adjusted EBIT (20.0) (16.5) (16.3) (26.2) (79.1) (20.3) (18.8) (21.1) (22.8) (83.0) (21.2) (21
Slide 30: Capital and Voting Rights
Capital and Voting Rights As of September 30, 2023 the total number of issued shares of SOCIÉTÉ BIC is 43,952,226 shares representing: • 64,236,103 voting rights • 62,364,526 voting rights excluding shares without voting rights Total number of treasury shares held at the end of September 2023: 1,871
Slide 31: Glossary
Glossary • Constant currency basis: constant currency figures are calculated by translating the current year figures at prior year monthly average exchange rates. • Organic change or Comparable basis: at constant currencies and constant perimeter. Figures at constant perimeter exclude the impact of
Slide 32: Disclaimer
Disclaimer This document contains forward-looking statements. Although BIC believes its estimates 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 Management of BIC’s 2022 Universal