• 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.

• Warning! GuruFocus has detected 5 Warning Sign with BICEF.

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.

Q: What are the key building blocks of your operating margin guidance for 2025? A: Chad Spooner, CFO, noted that while input cost inflation, particularly in raw materials, will negatively impact gross profit margins, there will be positive contributions from price and mix. Operating leverage will improve due to restructuring efforts. However, fixed cost absorption and country mix will present challenges.

Q: What are your ambitions for the Human Expression business, especially regarding expansion into new markets? A: Gonzalve Bich, CEO, stated that while the MAI technologies acquisition is promising, it is still in the early stages. The focus is on leveraging underlying technology, and there are no immediate P&L impacts expected. The company remains committed to exploring new market opportunities.

Q: How might US tariffs impact your business, and can you update us on your CEO succession plan? A: Gonzalve Bich, CEO, mentioned that the impact of US tariffs is still uncertain, but the company is prepared with scenario analyses. Regarding CEO succession, the process is progressing well, but no further details are available at this time.

Q: Can you provide an update on the US lighter market and the impact of Asian imports? A: Chad Spooner, CFO, explained that the US lighter market was negatively impacted by Asian imports in early 2024 but stabilized mid-year. The market is now balanced, and no significant changes from Asian imports are expected in 2025. However, consumer softness due to inflationary pressures is anticipated to continue.

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