(BFM Stock Exchange) – The manufacturer of stationery, lighters and razor items did better than expected at the end of the year. BIC counts in particular on Tangle Teezer, its last acquisition, to fuel its growth this year.

BIC has signed a better year at the end of 2024. The manufacturer of stationery, lighters and razor items has unveiled as fourth quarter a turnover slightly dropped by 1.6% in published data and up 2.9% at constant exchange rates, at 517.5 million euros.

At constant exchange rates and excluding Argentina, where hyperinflation distorts the basics of comparison, the quarterly activity of BIC increases even 4.4%, which attracts the attention of Oddo BHF, which anticipated a increase of 2.8% on these same bases.

“This development is a good performance (we retained 2.8%and consensus 2.7%) and testifies to an acceleration of growth after a slight drop after nine months (-0.3%)” , appreciate the design office.

A good dynamic in lighters and razors

In detail, Oddo BHF underlines a good dynamic of activity in the lighters “(4.1% constant change outside Argentina) after a decline of 3.8% on the first nine months of the year (the fourth quarter United States is slightly growth) “, and an” sustained “activity for razors with growth of +6.7% in the fourth quarter at constant exchange rate outside Argentina (against +4.5% over nine months).

On the side of the adjusted operating result, it has been slightly contracted from one year to the next. Over the last three months of 2024, the adjusted operating profit is down 2.8% to register at 70.7 million euros. However, the manufacturer of pens and lighters exceeds both the expectations of ODDO BHF, housed at 68.2 million euros, as well as the consensus cited by the design office of 67.4 million euros .

The adjusted operating margin remained stable, emerging at 13.7% against 13.8% at the same period for the year 2023. “During the fourth quarter, profitability benefited from an improvement in the gross margin 40 base points (0.4 percentage point, editor’s note) and lower advertising expenses (-90 base points) allowing to compensate for an increase in operating expenses (-140 base points) “, underlines Oddo BHF.

A good surprise on the cash

Over the entire year, BIC’s turnover is down 2.9% in published data. And it increased slightly, by 0.8%, at constant exchange rates outside Argentina. The group’s annual income over the period was notably increased by an increase of 4.8% of activity in Europe and by 5.4% growth in turnover in Africa. On the other hand, sales contracted 7.3% in North America, 8% in Latin America and 5.9% in Asia and Oceania.

The group exceeded its objectives, which had lowered last June. BIC tapped on a “low to a figure” increase at constant exchange rates, roughly 1% and 3%.

The adjusted operating profit increased by 3% over a year, at 343.1 million euros. The adjusted operating margin increased by 90 base points over a year, from 14.7% in 2023, to 15.6% in 2024, due “to the favorable impact of the price effect and of mix, optimization of the production process, the fluctuation of currencies, and the drop in advertising expenditure “. Better still, the company slightly exceeds its own forecasts noted in November, namely an annual adjusted operating margin around 15.5%.

A little lower in the accounts, the share net profit of the adjusted group is increasing 5% to stand at 255.6 million euros after 243.4 million euros at the end of December 2023. Net profit per adjusted share jumped by almost 8% to stand out at 6.15 euros after 5.70 euros in 2023.

“Adjusted action profit has increased for the fifth consecutive year, and we have recorded a high generation of available cash flow flows,” said its general manager Gonzalve Bich.

On the assessment side, the publication has a good surprise. The net cash flows to 189.3 million euros, when the expectations of the design office were housed at 175.1 million euros. Oddo BHF notes an excellent generation of net cash flow available of 270.8 million euros, which is greater than the expectations of management (greater than 220 million euros) and its own (223 million euros). “The gap is explained by a good mastery of the working fund need (improvement of 17.7 million euros) and an investment envelope contained (86.9 million euros against 104.6 million euros in 2023) “, explains the design office.

After opening up 4.7%, BIC earned only 1.4% around 3:45 p.m.

Growth driven by Tangle Teezer

For 2025, BIC anticipates growth in turnover at constant exchange rates between 4% and 6%, and enrolled in online with the average growth trajectory of around 5% of its horizon plan.

This forecast includes Tangle Teezer, a brand of disadvantages with BIC at the end of 2024 and which should have a positive impact of 3.5 percentage points on group activity, according to Oddo BHF.

The adjusted operating margin is expected at the same level as in 2024, at 15.6%, while the generation of net cash flows available should be more than 240 million euros.

“In the end, the group demonstrates good resilience of its activity, a significant improvement in its profitability but even more a strong generation of free cash flow”, welcomes Oddo BHF which renews its opinion to “outperformance” as well as its lens of course 73 euros.

According to the financial intermediary, the valuation of BIC on the stock market remains “low”, with a course ratio on 2025 profits of 10.8 times when it was, on average, 12 in the last five years.

From this year BIC warns that it will no longer communicate its detailed financial results for each quarter, but twice a year, for the first half and for the year. For the first and third quarters, BIC will now only comment and comment on its turnover.