BIC: Q4 & Full Year 2024 Results

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Clichy, France - February 18, 2025

FOURTH QUARTER & FULL YEAR 2024 RESULTS

Solid net sales performance in Q4 at +4.4%¹. Full Year growth at +0.8%¹

Robust aEBIT margin at 15.6% and Free Cash Flow at €271m

Solid growth in Q4, with net sales increasing 4.4%¹. FY 2024 net sales of €2,197 million, up 0.8%¹ with continued strong performance across Europe, Latin America and Middle East and Africa

• Human Expression: FY net sales of €814 million, increasing 0.7%¹, driven by good performance in Europe and Middle East and Africa. Q4 growth was +2.8%¹.

• Flame for Life: FY net sales of €810 million, decreasing 1.8%¹, due to challenging consumption trends in North America, balanced by strong growth across the rest of the Group. Quarterly sequential improvement leading to Q4 net sales growth of +4.1%¹.
• Blade Excellence: FY net sales of €543 million, increasing 5.0%¹, with robust performance across Europe, Brazil and Middle East and Africa. Q4 growth was +6.7%¹.

Strong 2024 adjusted EBIT of €343 million, growing +3.0% year-on-year, adjusted EBIT margin of 15.6%, +90 basis points

2024 adjusted EPS growth for the 5^th consecutive year at 6.15 euros (+8% year-on-year)

Outstanding Free Cash Flow generation at €271 million during 2024 (+9% year-on-year)

Acquisition of Tangle Teezer in December 2024, a market-leading, fast-growing and profitable detangling haircare company, in line with BIC's Horizon ambitions

2025 Outlook: the Group expects net sales growth between +4% and +6% at constant currency, adjusted EBIT margin at the same level as 2024, at 15.6%, above BIC's Horizon target, and Free Cash Flow above €240 million

Shareholders' remuneration:

• Proposed ordinary dividend of 3.08 euros per share² for fiscal year 2024, up 8% year-on-year, representing an estimated amount of €127 million
• Share Buyback program of up to €40m to be executed in 2025

Key Group financial figures

Gonzalve Bich, BIC's Chief Executive Officer commented:

"2024 was a year of execution excellence, building on the remarkable progress we have made since the launch of our Horizon Strategic Plan. As we enter the final chapter of our 5-year Horizon journey, I am extremely proud of our accomplishments, particularly the fact that we have delivered an average annual growth rate of more than 5% through the period, in line with our original mid-single digit growth ambition.

Throughout 2024, we demonstrated resilience in the face of a volatile macroeconomic environment. Our dedicated team members globally rose to the occasion, achieving strong results through disciplined execution, innovation, and the successful promotion of our products. Our consumer-focused marketing campaigns sparked growth across diverse and targeted regions.

This solid commercial execution in 2024, coupled with our high level of operational excellence, meant that our financial ratios outpaced our expectations for the year. We achieved a solid adjusted EBIT margin at 15.6%, we grew adjusted earnings per share for the fifth year in a row, and Free Cash Flow generation remained robust.

We ended the year by laying the foundation for greater value creation for all our stakeholders with the promising acquisition of Tangle Teezer.”

2025 Outlook³

In line with BIC's Horizon Plan mid-single digit growth trajectory, net sales are expected to grow between 4% and 6% at constant currency in 2025.

Adjusted EBIT margin is expected to be at the same level as 2024, at 15.6%, above BIC's Horizon target.

Free Cash Flow is expected to be above €240 million.

Key highlights

Net sales

Q4 2024 net sales were up 4.4% at constant currency excl. Argentina, driven by robust growth in Europe, Brazil and Middle East and Africa, particularly in the Blade Excellence and Flame for Life divisions. Performance in North America continued to improve sequentially in Q4.

Full Year 2024 net sales were up 0.8% at constant currency excl. Argentina with solid performance across Europe, Latin America and Middle East and Africa, partially offset by challenging market trends and lower consumption in North America, notably during the first half.

Gross profit

Q4 2024 gross profit margin decreased by 2.1 points to 49.5%. Excluding the fair value adjustment on the Power Purchase Agreement in France and on the Virtual Power Purchase Agreement in Greece⁵, Q4 2024 gross profit margin increased 40 basis points to 52.0%, driven by favorable price and mix, currency fluctuations and manufacturing efficiencies. This was partially offset by an increase in raw material costs.

Full Year 2024 gross profit margin decreased by 50 basis points at 50.2%. Excluding the special bonus⁶ and the fair value adjustment on the Power Purchase Agreement in France and on the Virtual Power Purchase Agreement in Greece, FY 2024 gross profit margin increased 40 basis points to 51.1%, driven by favorable price and mix, manufacturing efficiencies and positive currency fluctuations. This was partially offset by unfavorable fixed cost absorption and higher raw material costs.

Adjusted EBIT margin

Q4 2024 adjusted EBIT margin was stable year-on-year at 13.7%, mainly attributable to favorable price and mix, currency fluctuations, manufacturing efficiencies and lower brand support, offset by higher operating and other expenses.

FY 2024 adjusted EBIT margin was up 90 basis points, at 15.6%, driven by favorable price and mix, manufacturing efficiencies, positive currency fluctuations, as well as lower brand support investments versus last year.

Key components of the change in adjusted EBIT margin

Net income and earnings per share (EPS)

Full Year 2024 finance revenue was 7.9 million euros compared to a cost of 7.5 million euros last year, mainly due to favorable impact of the fair value adjustments to financial assets denominated in US Dollar against the Brazilian Real. Full Year 2024 effective tax rate was 28.8% vs. 27.6% in FY 2023.

Change in net cash position

Full year 2024 Operating Cash flow was 471 million euros. Free Cash Flow (before acquisitions and disposals) was 271 million euros.

Shareholders' remuneration for full year 2024

• A total dividend amount of €178 million euros, or €4.27 per share comprised of:
  • An ordinary dividend of €2.85 per share was paid on June 12, 2024.
  • An extraordinary dividend of €1.42 per share was paid on September 18, 2024.
• €55.7 million in share buybacks were completed by Société BIC in 2024. This includes €40 million of share buyback for cancellation and €15.7 million of free shares to be granted (long term incentives). 907,577 shares were purchased at an average price of €61.36 per share.

Update on BIC's Horizon Strategic Plan

During 2024, the Group continued to roll out its 2025 Horizon strategic ambitions:

• In December, BIC acquired Tangle Teezer a market-leading, premium detangling haircare company, supporting BIC's Horizon strategy by gaining exposure to a scaled, fast-growing and profitable business with meaningful upside potential. As part of BIC, Tangle Teezer is well positioned to reach further scale and gain market-leading positions in BIC's key regions. Tangle Teezer's expertly designed products, combined with BIC's unique commercial and supply chain capabilities will continue to drive long-term profitable growth.
• BIC continued to focus on Revenue Growth Management by streamlining the Group's portfolio to better meet consumer needs and optimize product mix. In 2024, this resulted in an 11% reduction in SKUs, leading to a total of 40% SKU reduction since 2019. BIC also continued to improve its net sales per SKU ratio by 15% in 2024. It almost doubled since 2019, with newly created products positively contributing.
• BIC pursued its strong commercial execution through the launch of impactful advertising campaigns which yielded tremendous results. In the US and Europe, BIC continued its long-lasting partnership with Snoop Dogg and Martha Stewart to promote its iconic utility pocket lighter EZ Reach. In Human Expression, BIC launched several campaigns during the Back-to-School season such as "Go Make WOW” for BIC Kids in Europe, and a 4-Color campaign "A pen for every side of you” featuring Charlie Puth in the US. In Blade Excellence, BIC partnered in Brazil with famous TV personality Lo Bosworth for the digital campaign "Tickle your senses”, promoting the new added-value Soleil Escape female shaver.
• eCommerce was a key growth driver with core ecommerce sales increasing double digits at constant currency. This growth was fueled by all three divisions in key regions, particularly North America, Europe and Latin America. Best-performing products online included the mechanical pencil in the US, the iconic 4-Color pen and the added-value Flex 5 Hybrid shaver in Europe.

Operational Trends by Division

Human Expression