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SHAREHOLDERS’ LETTER N°48

BIC Group’s Shareholders' Letter of November 2019

portrait of Gonzalve Bich

EDITORIAL

Dear Shareholders,

 

On October 11th, BIC’s Third Quarter results coupled with our year-to-go projections led us to announce an adjustment to our Full Year 2019 Outlook. BIC’s Net Sales evolution is now expected to be between flat and -2.0% on a comparative basis and Normalized Income from Operations margin in the lower end of the 16.5% to 18% initial range. There are a few reasons for this revised Outlook. Overall performance was softer than expected during the last three months, as our markets remain volatile and challenging. In Lighters, the deterioration of the U.S. Pocket Lighters’ market accelerated, down high single digits in volume over the last month. In Stationery, we did not achieve our initial sell-out performance goals and lost market share during the Back-to-School season in both the U.S and Mexico.  Finally, in India, our recovery has been slower than anticipated and Cello’s performance continued to be affected by the level of inventory carried by Superstockists.

 

Nevertheless, I’m pleased to say that while the Third Quarter was more challenging than expected in some areas, performance remained robust in others. In Shavers, our teams delivered solid results reflected by further market share gains in all our main geographies, despite highly competitive markets. We reached 28.1% value market share in the U.S non-disposable market, and a historical record of 21.5% value market share in Brazil as our trade-up strategy paid off. I’m also happy to see continued momentum in our e-commerce business, with Net Sales up 17% year-to-date, in line with our efforts to become a true player in omnichannel.

 

We remain focused on executing our “BIC-2022 Invent the Future” transformation plan to become more agile, innovative and efficient. I am confident that our solid foundation, combined with an increased focus on consumer-centricity, will enable BIC to resume long-term growth and create sustainable value for all our stakeholders.”

 

Gonzalve Bich, Chief Executive Officer

THIRD QUARTER AND NINE MONTHS 2019 RESULTS

THIRD QUARTER AND NINE MONTHS 2019 RESULTS

Find here the 3rd quarter and nine months 2019 press release

NEWS

BIC Battle Flow campain

BIC BATTLE FLOW CAMPAIGN TO SUPPORT BIC® GEL-OCITY QUICK DRY PEN

To support the launch of BIC® Gel-ocity Quick Dry in Europe, the BIC Battle Flow campaign was created in collaboration with one of the fastest rapper in the world, Mac Lethal from Kansas City, who can rap 1000 words in two minutes.

 

BIC Gel-ocity Quick Dry is a particularly reliable writing instrument which can write very smoothly using ultra-fast drying ink that can follow any flow, even teachers' flow and Mac Lethal's one! This campaign was launched in both social media and on TV channels from August 19th till the end of September 2019 in the UK, Italy, Spain and Ireland.

 

Discover the BIC® Battle Flow campaign on YouTube : https://www.youtube.com/watch?v=Q-ttSOaAQYU

BIC Back to school in Poland

BACK-TO-SCHOOL 2019 ACTIVATIONS IN POLAND

An impressive Back-to-School campaign was launched by BIC Poland team :

 

•More than 100 000 Points of Sales displays with the promotion of BIC® Toy Story contest: posters,leaflets, displays & stickers.

 

•A two week TV campaign on the Disney and YouTube Channels

 

•Two weeks of sales promotions in 133 Points of Sales animated by hostesses, animators and advisors.  

BIC Body mark

BIC BODYMARK LAUNCH IN THE US

The U.S. launch of BodyMark by BIC® semi-permanent tattoo pen earlier this year is a wonderful example of agility, innovation and consumer-centricity in action.

 

BIC used strong insights, an authentic influencer and a 360 integrated marketing campaign to build a product that has risen to the top 10 SKU list at multiple key accounts.

 

Great performance was achieved thanks to BIC’s very first Snapchat campaign, supporting the launch of #bodymark. 

Cello ColourUp

BIC CELLO’S ENTRY INTO THE SCHOOL COLOURING MARKET WITH “CELLO COLOURUP “

To leverage our brand leadership in the Writing Instruments’ segments in India, BIC Cello entered the school colouring market launching Cello ColourUP.

 

Unlocking a new consumer base of 100 million children aged between 3 – 8 years, Cello ColourUP launched a large variety of Crayons, Colour Pens & Colour Pencils!

 

With arts & craft being used increasingly as a tool & playing an integral part to the early & primary education in the country, this new colouring range marks a launch in a very promising segment in India.

Ivory Coast School animation

IVORY COAST SCHOOL ACTIVATION 2019

From April to June 2019, a School Activation program took place in the Ivory Coast and conducted in 3 main cities: Abidjan, Bouaké and Korhogo. This campaign was aimed at creating an emotional link between BIC® and the students of primary and secondary schools and to drive their preferences towards BIC® Cristal® Original Medium pen and BIC® Cristal® Original Fine pen.

 

The campaign was designed around the slogan "Write your Success with BIC" and its activation was based on BIC® Cristal® Original Medium and BIC® Cristal® Original Fine sampling programs, in-store promotions, product presentations with games and engaging activities, school event sponsorship actions, book fairs and the distribution of 50,000 school lists before the start of the school year.

BIC LIGHTERS LIMITED EDTION SPRINGBOKS

A LIMITED-EDITION BIC POCKET LIGHTER IN SUPPORT OF THE SPRINGBOKS

Congratulations to South Africa National Rugby team, the Springboks, who  won the 2019 Rugby World Cup !

 

Throughout the competition, Springbok fans were able to support our national team by purchasing a limited edition BIC® Springbok pocket maxi lighters!

 

In addition, BIC developed a cooler bag, limited edition “Game Day” Springbok, to ensure that our Rugby fans were well equipped for a barbecue while waiting to watch the games. This initiative was supported by major retailers through a promotional activity encouraging the use of BIC "Game Day" waste bins. 

BIC SHAVER PROMOTION IN NIGERIA

BIC ‘SHAVE, PLAY & WIN’ CONSUMER CAMPAIGN IN NIGERIA

Advancing BIC® presence and visibility in Nigeria, BIC launched the BIC® ‘Shave, Play and Win’ campaign aimed at engaging consumers around the African Cup of Nations football tournament.

 

From June to August 2019 the campaign ran across Nigeria and saw a number of activations including the set-up of viewing center that brought Nigerians together to cheer for their national team during the tournaments.

 

As part of the campaign, promotional activities were also held across the country, offering consumers an immediate chance to win more than 10,000 shaver prizes and participate in the BIC "Shave, Play and Win" final draw. This contest saw an impressive involvement of 30,000 participants!

BIC TERRACYCLE IN AUSTRALIA AND OCEANIA

LAUNCH OF THE BIC WRITING INSTRUMENTS RECYCLING PROGRAM ACROSS AUSTRALIA AND NEW ZEALAND

In this 3-year exclusive agreement, BIC have partnered with TerraCycle on a program that recycle pens, markers, and correction products, from any brand, at the end of their life. BIC’s goal is to recycle 1500kg of Writing Instruments in the first 12 months (approximately 135,000 pieces).

 

Later, a second life will be given to them by transforming them into furniture for schools and local communities.

 

The response has been amazing so far, with more than 280 schools and companies registered in the program.

 

https://www.terracycle.com/en-AU/brigades/writing-instruments-recycling-au  

https://www.terracycle.com/en-NZ/brigades/writing-instruments-recycling-nz  

KIDS IN NEED LOGO

BIC PARTENERED WITH “KIDS IN NEED FOUNDATION”

As part of its commitment to providing inclusive and quality education and promoting lifelong learning, BIC recently partnered with the “Kids in Need Foundation” and surprised elementary school students at P.S. 052 School in Queens, New York by offering them backpacks filled with BIC® school supplies.

 

BIC’s Shelton headquarters also hosted a Halloween-themed donation event that will benefit the “Kids in Need Foundation”.

BIC CAROLINE KIBERA KENYA

BIC EAST AFRICA PARTNERS WITH CAROLINA KIBERA, IN KENYA

In on-going commitment to Education, BIC East Africa is proud to donate BIC® pens and BIC® Evolution Red graphite pencils to 171 schools reaching 59,662 underprivileged students of Kibera, the largest slum in Nairobi.

BIC 2018 INTEGRATED ANNUAL REPORT

BIC 2018 INTEGRATED REPORT AWARDED

BIC’s first Annual Integrated Report, "Being Essential" has been awarded by Stratégies (leading French magazine specialized in Communication, Marketing, and Digital) a Silver Prize for Editorial Communication and the Gold Prize for the Brand content category.

 

The objective of this first Integrated Report was to describe and communicate how BIC's Business Model, Strategy, and Governance lead Value Creation for all its Stakeholders.

Check out the 2018 BIC Integrated Annual Report here:

Printed version : https://www.bicworld.com/sites/default/files/BIC_RA_30_GB_web.pdf

Video : https://www.youtube.com/watch?v=C1sJJPsDgbk&t=16s

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