Bic’s Disposable Items Take a Hit: Net Profit Dips After Lighter Sales Decline
France-based conglomerate Bic, known for its iconic disposable pens, lighters, and razors, has reported a disheartening 6.4% drop in its 2024 net profit. This downturn is attributed primarily to a plunge in lighter sales in North America, Bic’s largest market.
Sales Decline and Regional Variations
The group, which recently announced the upcoming departure of its CEO Gonzalve Bich, grandson of the company’s founder, recorded a net profit of €212 million in 2024, down from €226.5 million the previous year.
Despite the remarkable success of the famous 4-color pen in European markets, particularly in its "Olympic Games" and "Pastel" versions, Bic’s overall revenue declined by 2.9% to €2.19 billion compared to €2.26 billion in 2023.
While revenue did increase by 4.8% in Europe and 5.4% in the Middle East and Africa, sales fell significantly in other regions: 7.3% in North America, 8% in Latin America, and 6% in Asia.
Impact of Smoking Decline in the US
The decline in lighter sales in North America, a key market for Bic, is attributed to a "deterioration in consumer trends," specifically the declining number of smokers in the United States.
"In 2024, the US lighter market declined by 5% in value," Bic reported, noting that the company had invested in an advertising campaign featuring Snoop Dogg and Martha Stewart.
Restructuring and Growth Strategies
Despite the challenges, CEO Bich emphasized Bic’s resilience amidst a volatile macroeconomic environment.
For 2025, Bic is pinning its hopes on its recent acquisition of Tangle Teezer, a brand of detangling hairbrushes, to help it regain momentum. The company anticipates a revenue growth of "between 4 and 6%" at constant exchange rates, an adjusted operating margin "at the same level as in 2024, at 15.6%," and the generation of net cash flow "exceeding €240 million."
In a strategic move, Bic will no longer disclose its detailed financial results for each quarter but only twice a year, for the first half and for the full year. For the first and third quarters, Bic will only release its revenue figures.
CEO Transition and Succession Plan
Gonzalve Bich, 46, will step down as CEO by September 30, 2025, to allow time for the identification and appointment of his successor. He took over the reins of the family business in 2018, succeeding his father Bruno, who reached the age limit of 72 stipulated by the company’s statutes.
Key Takeaways
- Bic’s 2024 net profit declined by 6.4%, primarily due to a drop in lighter sales in North America.
- The company’s revenue fell by 2.9%, with varying performance across different regions.
- Bic is facing headwinds due to declining smoking rates, particularly in the US.
- The company is banking on its Tangle Teezer acquisition and cost-cutting measures to drive growth in 2025.
- CEO Gonzalve Bich is set to depart in September 2025, triggering a succession planning process.
