BIC Group: 1ST Quarter 2008 Results

Weak Q1 2008 results

Sales Down 0.9% at Constant Currencies

Income From Operations Margin at 12.4% As a Result of Brand
Support Investment

For the Full Year, Taking into Account Current Economic
Environment and Climate, We Expect a Slight Increase in Net Sales at
Constant Currencies and Improvement In IFO Margin Compared To Q1 2008
Level
CLICHY, France--(Business Wire)--
Regulatory News:

BIC Group (Paris:BB):

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In million euros Q1 Q1 Change as Change at
2007 2008 reported constant
currencies(1)
Group
----------------------------------------------------------------------
Net Sales 330.4 308.1 -6.7% -0.9%
----------------------------------------------------------------------
Gross profit 169.5 154.7 -8.7% -5.2%
----------------------------------------------------------------------
Income From Operations 58.2 38.2 -34.3% -33.9%
----------------------------------------------------------------------
IFO Margin 17.6% 12.4%
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Group Net Income 41.2 25.1 -39.0%
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Earnings Per Share (in euros) 0.83 0.52 -37.3%
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Category
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Stationery
Net Sales 159.5 145.8 -8.6% -2.3%
IFO margin 13.8% 11.1%
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----------------------------------------------------------------------
Lighters
Net Sales 91.6 82.3 -10.2% -4.8%
IFO margin 33.4% 26.7%
----------------------------------------------------------------------

----------------------------------------------------------------------
Shavers
Net Sales 61.7 57.8 -6.3% -0.4%
IFO margin 11.2% 1.5%
----------------------------------------------------------------------
(1)Constant currency figures are calculated by translating the current
year figures at prior year monthly average exchange rates.
*T

All figures unaudited

Executive Summary:

-- 1st Quarter 2008 Net Sales reached 308.1 million euros, a
-0.9% decrease at constant currencies.

-- In Stationery, the Consumer business continued to be
impacted by customer inventory reductions in the USA and
we experienced an acceleration of the Graphic business
decline during the 1st Quarter.

-- In Lighters, after a good 4th Quarter 2007, we faced a
decrease in sales in North America. Europe was flat. Sales
in Latin America increased.

-- In Shavers, despite the absence of "pipe-line" impact
compared to Q1 2007, our core triple-blade portfolio
continued to perform strongly. In March, we launched the
BIC(R) Soleil(R) System in Continental Europe and Canada.

-- Q1 2008 Income From Operations reached 38.2 million euros,
down -33.9% at constant currencies. IFO margin was 12.4%
compared to 17.6% in Q1 2007, as a result of drop in Gross
Profit and increase in brand support in all categories.

-- Earnings Per Share reached 0.52 euros, down -37.3% compared to
Q1 2007.

Commenting on Q1 2008 results, CEO Mario Guevara said: "As I
indicated in February, 2008 is a challenging year for the Group. Our
1st Quarter 2008 results are weak. Net sales declined by -0.9% at
constant currencies, negatively impacted by the slowdown of the US
economy while Europe showed a good resilience and Latin America
performed well. In this uncertain environment, we have chosen to
continue to invest in our brand in all categories. For the full year
2008, we expect our sales to grow slightly at constant currencies and
our IFO margin to improve compared to Q1 2008 level. We remain
committed to managing our business on a long term basis and will
continue to invest to strengthen our Company."

BIC Group Q1 2008 net sales were 308.1 million euros, compared to
330.4 million euros in Q1 2007, down -6.7% as reported and -0.9% at
constant currencies. Perimeter impact was +0.9% and foreign currency
fluctuations had a negative impact of -5.8%, of which -4.5% was due to
the decrease of the US Dollar.

The gross margin decreased -1.1 points to 50.2% of sales versus
51.3% in Q1 2007 with -0.6 points coming from the continued support of
the BIC(R) Soleil(R) Brand (primarily the impact of coupon redemption)
and -0.5 points from foreign exchange. Price increases offset the
impact of raw materials.

Income from operations (IFO) decreased -34.3% as reported to 38.2
million euros and -33.9% at constant currencies. IFO margin was 12.4%
compared to 17.6% in Q1 2007 due to:

-- Overall continued brand support, including BIC(R)
Soleil(R) Brand in North America;

-- One-time impact of child-resistant lighter advertising
campaign in Europe;

-- Heavily weighted brand support in our Graphic business
during the 1st Quarter 2008.

Income before tax decreased -39.8% as reported to 37.8 million
euros. Finance revenues decreased -5.1 million euros as Q1 2007
benefited from a strong favorable impact of FX hedge. Q1 2008 tax rate
was consistent compared to Q1 2007 (33.6%).

Group net income was 25.1 million euros in Q1 2008, a -39.0%
decrease. Earnings per share (EPS) reached 0.52 euros in Q1 2008,
compared to 0.83 euros in Q1 2007, down -37.3%.

After the repurchase of shares, closing cash and cash equivalents
were 165.0 million euros, compared to 171.9 million euros in Q1 2007.

Stationery

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In million euros Q1 2007 Q1 2008 Change
----------------------------------------------------------------------
Net Sales 159.5 145.8
As reported -8.6%
At constant currencies -2.3%
----------------------------------------------------------------------

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IFO 22.0 16.2 -26.5%
----------------------------------------------------------------------
IFO Margin 13.8% 11.1%
----------------------------------------------------------------------
*T

Stationery net sales decreased -8.6% as reported and -2.3% at
constant currencies.

Our consumer business net sales increased slightly. Growth in
Europe and Latin America was offset by a mid-single digit decrease in
North-America, where we continued to experience customer inventory
reductions.

During the 1st Quarter, we experienced a high-single digit
decrease of our Graphic business. BIC Graphic USA continued to suffer
from the slowdown of the writing instrument promotional activity while
BIC Graphic Europe activity decreased compared to last year.

IFO margin decreased -2.7 points to 11.1%, due to the sharp
decrease of BIC Graphic IFO margin, with heavily weighted brand
support in Q1, while the trend remains positive in our consumer
business.

Lighters

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In million euros Q1 2007 Q1 2008 Change
----------------------------------------------------------------------
Net Sales 91.6 82.3
As reported -10.2%
At constant currencies -4.8%
----------------------------------------------------------------------

----------------------------------------------------------------------
IFO 30.6 22.0 -28.0%
----------------------------------------------------------------------
IFO Margin 33.4% 26.7%
----------------------------------------------------------------------
*T

Lighter net sales decreased -4.8% at constant currencies. Sales
were flat in Europe and we experienced a growth in Latin America.

Following a good performance in the 4th Quarter 2007, sales
declined in North America. Due to the current economic situation, we
faced inventory reductions at key customers and slower consumer take
aways.

IFO margin decreased -6.7 points to 26.7% in the 1st Quarter 2008.
This drop is notably due to the one-time advertising campaign aimed at
supporting the implementation of child-resistant regulation in Europe.

Shavers

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In million euros Q1 2007 Q1 2008 Change
----------------------------------------------------------------------
Net Sales 61.7 57.8
As reported -6.3%
At constant currencies -0.4%
----------------------------------------------------------------------

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IFO 6.9 0.9 -87.5%
----------------------------------------------------------------------
IFO Margin 11.2% 1.5%
----------------------------------------------------------------------
*T

Shaver net sales decreased -0.4% at constant currencies. As a
note, the 1st Quarter 2007 was very strong (+15.7%) as it benefited
from a strong "pipe-line" impact, both in one-piece with the launch of
BIC(R) Soleil(R) Pivot and in refillable with the BIC(R) Soleil(R)
System.

Despite a slight slowdown of growth in the US market, our sales
were driven by the continuous expansion of our one-piece triple-blade
business. Our portfolio of triple-blade one-piece shavers accounted
for 43% of our total one-piece shaver sales in the 1st Quarter 2008,
compared with 39% in the 1st Quarter 2007.

In March, we launched BIC(R) Soleil(R) System in Continental
Europe and Canada and BIC(R) Soleil(R) Shimmer in the US and the UK,
aimed towards young consumers and teenagers.

The IFO margin decreased to 1.5% in the 1st Quarter 2008. This is
due to the continued support of the BIC(R) Soleil(R) brand, mainly in
North America and the launch of BIC(R) Comfort 3 Action in Latin
America.

Other Product Net Sales

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In million euros Q1 2007 Q1 2008 Change
----------------------------------------------------------------------
Net Sales 17.5 22.2
As reported +27.1%
At constant currencies +30.5%
*T

Other product net sales increased 30.5% at constant currencies, as
the result of the integration of Atchison Products, Inc. and the
increase of phone cards sales in France.

BIC Group net sales change in the 1st Quarter 2008 by geography

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In million euros Q1 2007 Q1 2008 Change
----------------------------------------------------------------------
1 - Europe 95.0 97.2
As reported +2.2%
At constant currencies +3.5%
----------------------------------------------------------------------

----------------------------------------------------------------------
2 - North America and Oceania 148.3 125.3
As reported -15.5%
At constant currencies -5.6%
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----------------------------------------------------------------------
3 - Latin America 67.5 68.3
As reported +1.3%
At constant currencies +4.7%
----------------------------------------------------------------------

----------------------------------------------------------------------
4 - MEAA 19.6 17.3
As reported -11.5%
At constant currencies -5.5%
----------------------------------------------------------------------

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Total Group Net Sales 330.4 308.1
As reported -6.7%
At constant currencies -0.9%
----------------------------------------------------------------------
*T

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Condensed Profit and Loss Account
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---------- ---------- ------ -----------
Change at
In million euros Q1 2007 Q1 2008 Change constant
currencies

----------------------------------------------------------------------
NET SALES 330.4 308.1 -6.7% -0.9%
----------------------------------------------------------------------

Cost of Goods 160.9 153.4 -4.6%
----------------------------------------------------------------------
GROSS PROFIT 169.5 154.7 -8.7% -5.2%
----------------------------------------------------------------------

Administrative & other
operating expenses 111.3 116.5 +4.7%
----------------------------------------------------------------------
INCOME FROM OPERATIONS (IFO) 58.2 38.2 -34.3% -33.9%
----------------------------------------------------------------------

Finance revenue/(costs) 4.7 -0.4
----------------------------------------------------------
INCOME BEFORE TAX AND
MINORITY INTEREST 62.9 37.8 -39.8%
----------------------------------------------------------

Income tax expense 21.1 12.7
Minority interest 0.6 -
----------------------------------------------------------
GROUP NET INCOME 41.2 25.1 -39.0%
----------------------------------------------------------

----------------------------------------------------------
EARNINGS PER SHARE (EPS) (in
euros) 0.83 0.52 -37.3%
----------------------------------------------------------

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Total weighted number of
shares outstanding adjusted
for treasury shares: 49,302,989 48,620,706
---------------------------------------------------
*T

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Condensed Balance Sheet
------------------------------ ---------------------------------------

------------------- -------------------
In million euros March 07 March 08
ASSETS
----------------------------------------------------------------------
Non-Current Assets 724.5 690.0
----------------------------------------------------------------------

----------------------------------------------------------------------
Current Assets 927.9 923.8
----------------------------------------------------------------------

----------------------------------------------------------------------
TOTAL ASSETS 1,652.4 1,613.8
----------------------------------------------------------------------

EQUITY AND LIABILITIES
----------------------------------------------------------------------
Shareholders' Equity 1,149.2 1,161.6
----------------------------------------------------------------------

----------------------------------------------------------------------
Non-Currrent Liabilities 206.1 165.9
----------------------------------------------------------------------

----------------------------------------------------------------------
Current Liabilities 297.1 286.3
----------------------------------------------------------------------

----------------------------------------------------------------------
TOTAL EQUITY & LIABILITIES 1,652.4 1,613.8
----------------------------------------------------------------------
*T

2008 Agenda

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2007 AGM May, 21st BIC headquarters in
Clichy
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1st Half 2008 results August, 6th Conference Call
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3rd Quarter 2008 results October, 22nd Conference Call
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*T

About BIC

BIC is a world leader in stationery, lighters and shavers. For
more than 50 years, BIC has honored the tradition of providing
high-quality, affordable products to consumers everywhere. Through
this unwavering dedication, BIC has become one of the most recognized
brands in the world. BIC products are sold in more than 160 countries
around the world. In 2007, BIC recorded net sales of 1,456.1 million
euros. The Company is listed on "Euronext Paris", the SBF120 and CAC
Mid 100 indexes. BIC is also part of the FTSE4Good Europe Index.

For more information, please consult the corporate web site:
www.bicworld.com

Investor Relations contacts: +33 1 45 19 52 26
Sophie Palliez-Capian, sophie.palliez@bicworld.com
or
Carole Richon, carole.richon@bicworld.com
or
Press contacts: +33 1 53 70 74 26 / 74 91
Florence Riu, friu@image7.fr
or
Flore Larger, flarger@image7.fr

Copyright Business Wire 2008