BIC (BB) Q2 2024 earnings summary

Executive summary

• H1 2024 faced a challenging macroeconomic and geopolitical environment, with inflation and weak consumer sentiment impacting North America, while Europe, Latin America, and MEA delivered strong growth at constant currency.

• The company responded with cost adaptation, a North America reorganization plan, and focus on operational strengths and innovation, including digital campaigns and product launches.

• Sustainability initiatives advanced, with energy efficiency improvements and renewable energy transitions in manufacturing.

• SKU count reduced by 12% and core e-commerce net sales grew double-digit in H1.

• Free cash flow generation improved to €37 million, up €34 million year-over-year.

Financial highlights

• H1 2024 net sales were €1,139 million, down 0.5% at constant currency excluding Argentina; adjusted EBIT was €170 million (14.9% margin, flat year-over-year); adjusted EPS was €2.95.

• Free cash flow was €37 million, up from €3 million in H1 2023; net cash position at end of June 2024 was €262 million.

• Q2 2024 net sales were €618 million, down 3.2% year-over-year as reported; Q2 adjusted EBIT margin was 17.4%, up 0.9 points.

• H1 2024 net income group share was €111.4 million; reported EPS €2.67.

• Gross profit margin stable at 49.3% in H1 2024; adjusted gross profit margin up to 49.9% excluding special items.

Outlook and guidance

• Full-year 2024 net sales expected to grow in the low single digits at constant currency, excluding Argentina.

• Slight improvement in 2024 adjusted EBIT margin anticipated; free cash flow expected above €220 million.

• Strategic initiatives and cost actions are expected to offset negative consumer spending trends.