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Bic (BICEF) (Q4 2024) Earnings Call Highlights: Record EPS and Strategic Acquisition Drive Growth

In This Article:

  • Net Sales: EUR2,197 million for 2024, up 0.8% at constant currency, excluding Argentina.

  • Q4 Net Sales: EUR517 million, up 4.4% at constant currency, excluding Argentina.

  • Adjusted EBIT Margin: 15.6% for 2024, an increase of 90 basis points from last year.

  • Adjusted EPS: EUR6.15 for 2024, an increase of 8% from last year.

  • Free Cash Flow: EUR271 million for 2024.

  • Net Cash Position: EUR189 million at the end of December 2024.

  • Human Expression Net Sales: EUR814 million, up 0.7% at constant currency, excluding Argentina.

  • Flame for Life Net Sales: EUR810 million, down 1.8% at constant currency, excluding Argentina.

  • Blade Excellence Net Sales: EUR543 million, up 5% at constant currency, excluding Argentina.

  • Dividend Proposal: EUR3.08, an increase of 8% from last year.

  • CapEx: EUR87 million for 2024.

  • Tangle Teezer Acquisition: Acquired for EUR201 million in December 2024.

Release Date: February 19, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Bic (BICEF) achieved a solid adjusted EBIT margin of 15.6% in 2024, surpassing their long-term Horizon target of 15.5%.

  • The company delivered adjusted EPS growth of 8%, reaching more than EUR6, a record high since 2017.

  • Bic (BICEF) generated EUR271 million of free cash flow, reflecting strong financial discipline.

  • The acquisition of Tangle Teezer is expected to support Bic (BICEF)'s Horizon strategy by providing exposure to a fast-growing and profitable business.

  • Bic (BICEF) saw significant geographical expansion, with strong performance in Europe, Latin America, and the Middle East and Africa.

Negative Points

  • Full year 2024 net sales growth was below expectations, with only a 0.8% increase at constant currency, excluding Argentina.

  • The US market faced negative consumption trends, resulting in a mid-single digit market decline in value.

  • The Human Expression division's growth was negatively impacted by the soft performance of Skin Creative and Digital Writing businesses.

  • The Flame for Life division experienced a challenging year in North America due to a downturn in consumption trends.

  • Bic (BICEF) faced higher raw material costs and unfavorable fixed cost absorption, impacting their overall financial performance.

Q & A Highlights

Q: Can you provide details on the net sales growth outlook, particularly considering the acquisition of Tangle Teezer? A: Chad Spooner, CFO, explained that the acquisition of Tangle Teezer is expected to add roughly 3 percentage points to growth. The core business is projected to grow between 1% to 3%. Growth will be driven by solid performance in Europe, EMEA, and Latin America, with a focus on distribution gains and innovation. Pricing will be more surgical and limited compared to previous years.