BIC (BB) Q4 2023 earnings summary

Executive summary

• FY23 net sales grew 9.2% at constant currencies across all three divisions; adjusted EBIT margin rose 70 bps to 14.7%.

• Free cash flow reached €248.7m; adjusted EPS increased 11.3% to €5.70.

• Horizon 2025 priorities remain profitable growth, innovation, geographic expansion, operational efficiency and cash generation.

Financial highlights

• FY23 net sales were €2,263.3m, up 1.3% as reported, 3.5% on a comparative basis and 9.2% at constant currencies; Q4 sales were €526.1m, up 15.9% at constant currencies and down 0.1% as reported.

• Gross profit rose to €1,148.1m from €1,078.0m; gross margin increased 2.4 points to 50.7%, driven by price/mix and efficiencies.

• Adjusted EBIT was €333.1m, up from €311.7m; adjusted EBIT margin was 14.7% versus 14.0%. Reported EBIT was €320.5m and EBITDA €422.8m.

• Net income attributable to shareholders was €226.5m versus €198.6m; reported EPS was €5.30 versus €4.52 and adjusted EPS was €5.70 versus €5.12.

• Q4 adjusted EBIT margin improved to 13.8% from 8.2%; gross margin reached 51.6%, up 5.4 points YoY.

Outlook and guidance

• FY24 net sales expected to grow 5%–7% at constant currencies, driven by volume, price and mix; Argentina sales excluded due to hyperinflation.

• FY24 adjusted EBIT margin expected to improve slightly through operating leverage; free cash flow expected above €220m.

• Horizon 2025 targets: annual sales growth of 5%–7% at constant currencies, ~150 bps adjusted EBIT margin improvement from FY22’s 14.0%, and FY25 free cash flow above €240m.

• FY24 assumptions include ~€110m capex, working-capital improvements and EUR/USD hedging at 1.08.