• Net Sales Q3 2024: EUR540 million, up 0.2% at constant currency excluding Argentina.

• Net Sales Nine Months 2024: Approximately EUR1.7 billion, down 0.3% at constant currency excluding Argentina.

• Adjusted EBIT Q3 2024: EUR102 million, margin of 18.9%, a 370 basis point increase year-on-year.

• Adjusted EBIT Nine Months 2024: EUR272 million, margin of 16.2%, a 120 basis point increase year-on-year.

• Adjusted EPS Q3 2024: EUR1.77, up 19% versus Q3 last year.

• Adjusted EPS Nine Months 2024: EUR4.73, an increase of 7% versus last year.

• Free Cash Flow Nine Months 2024: EUR196 million, compared to EUR142 million last year.

• Net Cash Position September 2024: EUR329 million.

• Human Expression Net Sales Q3 2024: EUR200 million, down 4.3% at constant currency excluding Argentina.

• Flame for Life Net Sales Q3 2024: EUR192 million, up 0.7% at constant currency excluding Argentina.

• Blade Excellence Net Sales Q3 2024: EUR142 million, up 6.4% at constant currency excluding Argentina.

• Blade Excellence Adjusted Margin Q3 2024: 28%, up from 18.7% in Q3 2023.

• Warning! GuruFocus has detected 3 Warning Sign with BICEF.

Release Date: October 24, 2024

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

Positive Points

• Bic (BICEF) upgraded its full-year adjusted EBIT margin outlook for 2024, demonstrating strong financial performance.

• The company saw a strong sequential improvement in North America net sales, particularly in the US lighter business.

• Bic (BICEF) gained market share during the back-to-school season in key geographies, despite challenging market conditions.

• The Blade Excellence division achieved a significant adjusted EBIT margin of 28% in Q3, driven by positive pricing and mix.

• The company reported a strong free cash flow generation of EUR196 million for the first nine months of 2024.

Negative Points

• The challenging consumer environment negatively impacted overall market trends, affecting Bic (BICEF)'s growth in Q3.

• The skin, creative, and digital writing businesses underperformed, contributing to a decline in the human expression division.

• Market trends during the back-to-school season were challenging, leading to lower replenishment orders from retailers.

• The US lighter market remains difficult, with a 5.1% decline in value year-to-date, despite some stabilization.

• Currency fluctuations had a negative impact on net sales, contributing to a 3.7% decrease in reported net sales for Q3.

Q & A Highlights

Q: Given that you will likely achieve your 2025 targets a year ahead, what kind of margin territory can we expect for 2025, and what will be the main margin enhancers? Also, how is your marketing strategy evolving, and what growth trajectory can we expect for Q4 in the Human Expression division? A: Our guidance is approaching a 15.5% margin, not necessarily hitting it. We will provide any updates for 2025 targets at year-end. For Q4, we expect continued improvement in North America and growth in Brazil, Europe, and the Middle East and Africa, particularly during back-to-school seasons. Regarding marketing, we've pivoted to more impactful and edgy campaigns, focusing on launch years and consolidating years to optimize brand support.