Core Insights - BIC's Q3 2025 net sales were 519 million euros, reflecting a slight increase of +0.3% at constant currency but a decrease of -3.3% when excluding Tangle Teezer [2][4] - The company announced the divestiture of its Cello activities in India, indicating a strategic shift as the growth and profitability of these operations no longer aligned with BIC's ambitions [3][21][22] - Following a soft performance in Q3, BIC revised its FY 2025 outlook, anticipating net sales growth at constant currency in the range of -1% to -1.5% and an adjusted EBIT margin around 13.7% [7][11][8] Financial Performance - Q3 2025 net sales by division showed varied performance: - Human Expression: 192 million euros, down -0.5% at constant currency [6][10] - Flame for Life: 175 million euros, down -4.3% at constant currency [6][15] - Blade Excellence: 146 million euros, up +7.4% at constant currency, but down -6.1% excluding Tangle Teezer [6][20] - For the first nine months of 2025, net sales were 1,595 million euros, a decrease of -5.0% compared to the same period in 2024 [4][25] Regional Performance - In Europe, Q3 net sales were relatively flat at constant currency, with strong Back-to-School sales in Eastern Europe, Germany, and the UK, but weaker performance in Southern Europe [12][24] - North America experienced high-single-digit growth in Q3, driven by a solid performance in the US stationery market, although this was partially offset by poor results in other segments [12][24] - Latin America saw a decline in Q3 net sales, primarily due to competitive pressures in Mexico, while Brazil showed slight improvement [12][24] Strategic Actions - The divestiture of Cello activities in India is part of a broader strategy to sharpen focus on operations and invest in markets with a winning strategy [21][23] - CEO Rob Versloot emphasized the need for swift action to define a clear plan for BIC's future, indicating a commitment to improving operational performance [6][8][23]

Financial Performance - H1 2025 net sales decreased by 2.4% at constant currencies, totaling €1,077 million, with a comparative decline of 6.4% [2][10] - Adjusted EBIT for H1 2025 was €147 million, resulting in an adjusted EBIT margin of 13.7%, down from 14.9% in H1 2024 [3][11] - H1 2025 adjusted EPS was €2.35, compared to €2.95 in H1 2024, with free cash flow generation of -€14 million, a decline from €37 million in H1 2024 [4][12] Segment Performance - Human Expression segment saw Q2 2025 net sales of €253 million, down 6.1% at constant currencies, with H1 2025 net sales at €406 million, down 7.8% [7][18] - Flame for Life segment reported Q2 2025 net sales of €183 million, down 0.9% at constant currencies, with H1 2025 net sales decreasing by 8.6% [23][24] - Blade Excellence segment achieved Q2 2025 net sales of €157 million, up 19.9% at constant currencies, with H1 2025 net sales increasing by 15.6% [28][29] Geographic Performance - In Q2 2025, net sales in Europe increased by 6.8% at constant currencies, while North America saw a decline of 2.7% [33] - Latin America experienced a significant drop in net sales, down 14.3% in Q2 2025, while Middle East and Africa reported a slight increase of 2.6% [33] - H1 2025 net sales in Asia and Oceania decreased by 11.7% [33] Cost and Margin Analysis - H1 2025 gross profit margin was 48.5%, down from 49.3% in H1 2024, primarily due to higher raw material and electricity costs [10] - The adjusted EBIT margin for the Human Expression segment decreased to 11.0% in H1 2025, driven by increased costs and unfavorable performance [20] - Flame for Life adjusted EBIT margin fell to 28.6% in H1 2025, compared to 31.5% in the previous year, due to net sales decline and higher costs [27] Cash Flow and Net Position - H1 2025 free cash flow was negative at -€14 million, a significant decline from €37 million in H1 2024, attributed to lower operating cash flow and negative working capital changes [15][41] - The net cash position at the end of June 2025 was €21 million, down from €262 million at the end of June 2024 [16][44] Outlook - The company confirmed its 2025 outlook, expecting net sales growth between 0% and 3% at constant currency, with an adjusted EBIT margin around 15.0% and free cash flow above €240 million [9][13]