You all know certain products from BIC. Lighters for example or disposable razors. Those who have ever had to hold a video conference spontaneously while on vacation know that these razors can be bought all over the world. But does this market coverage also provide for solid returns? We think: Yes! But one after the other. BIC is a well-known French brand manufacturer. The product range includes writing instruments (ballpoint pens, felt-tip pens, correction products – here BIC is number 1 worldwide), lighters and disposable razors for men and women. Well-known brand names are BIC and Tipp-Ex. Production and distribution take place worldwide, with a focus on Europe, the USA and South America.

This is how the numbers look BIC has presented mixed figures for the first half of the year. Sales increased by 4.4% to 1.2 billion euros. However, net profit fell by 13.6% to €2.93 per share. The growth in sales was the result of the successful implementation of the Horizon Plan. This was noticeable both in the Blade Excellence and Human Expression segments and in most regions. Particularly noteworthy was the increase in net sales from e-commerce, which improved by 9.9% at constant exchange rates. This increased the share of online sales in total sales to 11.8%, compared to 11.3% in the first half of 2022. The EBIT margin fell by 3.1 percentage points to 14.9%, but was still solid. It was negatively affected by the decline in gross profit and increased investments in Opex.

Strong products, strong outlook BIC’s most successful product of the previous year in the US disposable segment for women, BIC Soleil Escape, continued to contribute to growth and recorded a market share gain of 4%. In addition, the new break-resistant pencil was introduced in the USA. This pencil has a lead that is 75% stronger than that of the leading US competitor and achieved high sales both online and in stores. For the current fiscal year, we expect sales growth of 5%. An improvement in EBIT would be desirable, but is unlikely due to continued investments. The dividend yield is a respectable 4%. This stock is worth considering!