BIC released financial results for the third quarter and first nine months of 2021. Q3 results exceeded expectations and therefore the company has upgraded its full year 2021 net sales guidance. 

Summary

  • Human Expression (Stationary) Net Sales led by double-digit increases in Europe, Latin America, Middle-East & Africa and India, and outstanding performance from recent acquisitions (70% Net Sales growth for Rocketbook in the U.S and robust growth for Lucky Stationery in Nigeria).
  • Overall, the 2021 Back-to-School season (sell-out) was solid, driven by a rebound in consumption, and the re-opening of schools. BIC maintained or gained market share in France, the UK, and Mexico, and underperformed in the US due to product availability issues.
  • In North America, the Stationery market rebounded, increasing 16.8% in value 12 with the Gel segment as the main growth engine. BIC lost 1.1 points market share affected by product availability constraints. During the Back-to-School season, the market increased by almost 30% compared to the same period last year and grew low-single-digit vs. two years ago. Recent innovations such as BIC® Prevaguard, and the eco-friendly BIC® ReVolution range performed well during the season.
  • E-commerce (excluding Rocketbook) delivered a robust +25% growth, well balanced between Pure Player channels (+23%), Omniretailers (+27%), and Direct-to-Consumer (+28%). Combined sales in developing regions more than doubled compared to last year, and BIC grew market share in almost all measured markets and products.
  • Adverse Raw Material price increases offset by savings from the Invent the Future transformation plan combined with ongoing manufacturing efficiencies.

“We delivered impressive results in the third quarter and exceeded our own expectations in a challenging trading environment, despite an unfavourable comparable basis.These strong results are the continued tangible outcomes of the organizational and strategic choices we made 18 months ago with our Invent the Future and Horizon Plans,” said CEO, Gonzalve Bich.

2021 Outlook (based on current market assumptions)

Given the solid nine months performance and current market assumptions, BIC upgrades its FY 2021 forecast and now expects to deliver above 14% Net Sales growth at constant currencies.

The fourth quarter will be affected by raw materials and freight & distribution cost increases. For the Full-Year, overall input costs inflation will be more than offset by improved manufacturing efficiencies, the savings from the Invent the Future plan, and tight management of expenses. Despite the building of strategic inventories to protect supply and delivery for 2022, our goal for Full-Year 2021 Free Cash Flow remains above 200 million euros.

To view the full press release, please click here. 

Source: Global News Wire