Published on Oct 25, 2023 at 7:06 p.m.
PARIS (Agefi-Dow Jones)–The manufacturer of pens, lighters, razors and promotional items Bic confirmed its objectives for the current year on Wednesday, after recording increased results in the third quarter.
The group’s net profit stood at €59.8 million in the three months to the end of September, compared to €46.8 million a year earlier.
Adjusted net profit, the main indicator used by the group, increased to 64 million euros, compared to 50.3 million in the third quarter of 2022.
Adjusted operating profit stood at 85.3 million euros, showing a margin of 15.2% compared to 11.3% a year earlier.
Turnover came to 560.3 million euros, down 3.4% year-on-year but up 3.2% at constant exchange rates and scope.
According to a consensus established by FactSet, analysts on average expected a net profit of 55 million euros, an adjusted operating profit of 83 million euros and a turnover of 576 million euros.
“Our third quarter results highlight sustainable and profitable growth, driven by the new commercial and operational capabilities deployed as part of our Horizon plan,” commented Gonzalve Bich, the group’s CEO, in a press release.
“Thanks to innovative, higher-value new products and the deep insights we derive from our data that have allowed us to reduce the number of SKUs by more than 7% since the start of the year, beyond our ambition for 2023, we were able to maximize the value of our assortment,” he added.
The improvement in profitability was also driven by lower raw material costs and favorable currency effects.
For the entire financial year, Bic confirmed that it expects an increase of 5% to 7% at constant exchange rates in its turnover, and an improvement in its adjusted operating margin. He also confirmed that he expects a generation of free cash flow of more than 200 million euros.
“Despite the caution imposed by the economic difficulties weighing on consumers, the outlook for 2024 seems promising to us,” also indicated Gonzalve Bich.
-François Schott, Agefi-Dow Jones; +33 (0)1 41 27 47 92; [email protected] ed: LBO
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October 25, 2023 1:06 p.m. ET (17:06 GMT)