South Africa pushes up BIC’s figures

South Africa pushes up BIC’s figures

Feb 14, 2017

French writing instruments vendor, BIC, has reported strong Q4 growth. According to the company, stationery sales increased by 7.8% to €165.6-million.

Sales were high in emerging markets such as South Africa and Brazil, owing to the back-to-school season, while in India sales also improved. The company reported mid-single digit growth in Europe and high-single digit growth in North America.

Overall, FY2016 sales for the Stationery division increased by 5.2% in constant currency to €736.6 million. Stationery volumes increased 1.5% to 6.9 billion units in 2016.
Looking ahead into 2017, the firm outlined priorities to deliver organic sales growth and gain market shares in the division through new product launches, increased R&D investment and new emerging channels such as e-commerce in developed countries.
Meanwhile in its Graphic arm, Q4 sales fell 13.6% to €94.6 million. Full-year sales also dropped, registering a 1.9% fall to €311.5 million.
BIC’s overall full-year sales rose 4.9% to €2.03 billion, while pre-tax profit dropped 10.7% to €408.1 million.
Earlier this month, BIC revealed that a strategic review of its promotional products unit would hit group FY2016 profits. The company has now revealed a €48.4 million hit from these operations.
Bruno Bich, chairman and CEO, says: “Our solid 2016 results are further testimony to the quality and strength of our business model. In a fast-moving and challenging market environment, such as in Shavers in the US, net sales growth was robust and consistent across all consumer categories. Despite the planned increase in operational investment, normalised income from operations remained healthy.
“In 2017, the volatility of currencies and the unpredictable global environment will require increased levels of agility from our teams to ensure continued success. We plan to deliver mid-single digit organic growth in Net Sales. We will continue to launch new products and strengthen our distribution, with a focus on e-commerce in developed markets.
“To enhance long-term growth, we plan another year of selected investments in R&D, CAPEX and Brand Support. The total impact of these investments on Normalized Income From Operations margin will be approximately -100 basis points compared to 2016, excluding major currency fluctuations.”

Source: www.finance.yahoo.com