SHAREHOLDERS’ LETTER N°47
BIC Group’s Shareholders' Letter of August 2019
Last week, BIC released its first half of 2019 results. I am pleased that we outperformed in nearly all of our markets, despite a challenging environment. We captured share in Europe in Stationery and Shavers and gained momentum in U.S. Shaver. We continued to grow in e-commerce, notably driven by U.S. Stationery through added value products like BIC® BodyMark, a new temporary tattoo marker. These achievements were hard-won given market headwinds across our three categories, which are globally trending downwards. A strong and evolving competitive environment continues to challenge us. Additionally, our First Half 2019 results were impacted by negative Back-to-School phasing in Stationery and a declining market in U.S. Lighters.
We are taking significant action to meet these challenges through a comprehensive transformation plan to make us more agile and innovative. “BIC-2022 Invent the Future” plan was initiated earlier this year and is on track to achieve 45 million euros in annualized savings by the end of 2022, including 25 million euros of additional annualized savings communicated in June. We also launched the Made For You brand in the U.S through an exclusive partnership with Amazon. This new line of gender-neutral refillable shavers combines product innovation with groundbreaking performance, and is an excellent example of our e-commerce growth strategy. Lastly, our acquisition of Nigeria’s number one Stationery manufacturer and brand is in line with our goal to broaden our footprint in developing markets.
As we continue to progress in our transformation journey, our relentless focus on execution throughout our markets gives me confidence in our ability to achieve our 2019 financial outlook. In the longer-term, I remain convinced that our categories offer genuine opportunities for growth. Our competitive advantages such as our manufacturing expertise, strong brands, and financial resources will help us resume long-term growth momentum. BIC products are and will remain essential to the everyday life of consumers everywhere.
Gonzalve Bich, Chief Executive Officer
BIC ACQUIRES NIGERIA’S LEADING WRITING INSTRUMENT MANUFACTURER
BIC has signed a definitive agreement to acquire 100% of Lucky Stationery Nigeria Ltd (LSNL). The transaction has been reviewed and approved by the Nigerian Federal Competition and Consumer Protection Commission (“FCCPC”). The closing is expected end of 2019.
LSNL is Nigeria’s number one Writing Instruments manufacturer, with approximately 5 million euros in Net Sales and approximately 30% market share in volume. Its main Writing Instrument manufacturing facility is currently located in Ilupeju-Lagos and will be relocated to a new modern facility north of Lagos in Shagamu.
BIC has been operating in Nigeria for more than forty years through a distribution partnership with CFAO – Nipen. LSNL’s brand, product portfolio, and distribution network will strengthen BIC’s current position in Nigeria.
BIC EAST AFRICA PARTNERS WITH ENACTUS KENYA
In line with its on-going commitment to Education in the region, BIC East Africa participated in the "17th Enactus Kenya National Exposition".
At this event, finalists from around the country presented their sustainable development projects, aimed at improving life conditions within their communities.
BIC TEAM MET WITH LIFE PROJECT 4 YOUTH IN INDIA
BIC teams in India met with students from Life Project 4 Youth, a non-profit organization supported by the BIC Foundation that supports young adults in their efforts to achieve more sustainable professional development through entrepreneurship and life skills training.
BIC team members were able to see for themselves the impact of the BIC Foundation's actions and how it has already changed lives through education!The great feedback that we received from the visit, both from BIC team members and the NGO, motivates us to continue working on this path!
The BIC Corporate Foundation currently supports 23 projects in 13 countries, intervening in favor of the fight against school dropout, access to education for girls and women and environmental education.
JUST LAUNCHED ON AMAZON IN GERMANY: BIC INTENSITY!
With the launch of BIC® Intensity felt-pen on Amazon in Germany, BIC is taking steps towards doubling its market share in the largest European Stationery market!
Be sure to like & follow our new social media campaign! #itstartswithaline #createyourownworld
BIC GELOCITY ILLUSION X SOPRANO DIGITAL CAMPAIGN IN FRANCE!
BIC France and the Soprano Foundation are partnering with BIC® Gel-ocity Illusion to improve learning conditions for children, especially in Comoros, the singer's home country.
Throughout the year, BIC will donate Stationery products through several online/offline activations.
To help support this partnership, a digital campaign has also been launched since mid-June-2019 to promote BIC® Gel-ocity Illusion while reinforcing the importance of handwriting.
So far, this campaign’s 1st wave achieved great results !
• 2.5 million people reached on Facebook & Instagram
• 2 million views & 6.7 million impressions on YouTube
NEWS FROM BIC.COM !
It’s never too late to start a new collection! BIC® 4 Colors fans' were very excited to discover 5 new models of BIC® 4 Colors Limited Edition "Crazy Animals" together with amusing messages.
The packing is very user-friendly, fun and specially designed for other usages.
This BIC® 4 Colors Limited Edition, the new limited editions to come ones to come and more Back-to-School special offers are only available on bic.com
MADE FOR YOU
BIC launched a new grooming brand that will redefine how consumers shop for personal care products!
“Made For YOU” – one brand for both men and women – offers a new refillable razor system available exclusively on Amazon and designed to shave everybody and every body, no matter who you are or what you shave.
This new razor combines exceptional performance, terrific value, an inclusive platform, and the most seamless shopping experience.
BIC AMAZONIA AWARDED !
As part of the Global Education Week project conducted in partnership with Aldeias Infantis S.O.S, BIC Amazonia received the silver medal of the 2018 Human Being Award - People Management and Sustainability!
The award is an initiative of the Brazilian Association of Human Resources - Sectional of Amazonas state, which aims to recognize practices and projects that value people inside and outside the Organization.
The Award Ceremony took place on June 19th, as part of the 18th anniversary of Sustainable Management Congress.
BIC® 4 COLOURS AT THE COMING G7 MEETING
The BIC® 4-Color was chosen for the next edition of the G7, which will take place in Biarritz (France) from August 24th to 26th.
This is a great opportunity to reinforce both the BIC® brand and our French industrial know-how through our iconic Writing Instrument product.
• Limited company Capital: 175,761,664.74 euros
• Divided into 46,010,907 shares of common stock, par value 3.82 euros
LISTED ON: EURONEXT PARIS
ISIN : FR0000120966
Continuous quotation 552.008.443 registered in Nanterre, FranceLEARN MORE