BIC Company
By: Graham Davis
Table of Contents
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Company History
Product Mix
Stock Information
Company Financials
• Financial Charts (Euro/USD)
• BIC Disposable Lighter (history)
• Product Breakdown
• Product Financials
Company History
• Founded in 1945 (Clichy, France)
• Founders: Marcel Bich and Edouard Buffard
• Originally manufactured fountain pen and
mechanical pencil parts
• Products are: Simple, Inventive, Reliable, and
for Everyone, Everywhere
• Total Employees: 10,455
• 9,198(Full-Time) 1,257(Part-Time)
Product Mix
• Stationary
• Ballpoint Pens, Pencils, Highlighters, Ect.
• Lighters
• Classic, Electronic, Multipurpose, Cases
• Shavers
• Men and Women's Disposable Razors
• Other Products/Promotional Products
• Batteries, BIC Phone, Pantyhose
Stock Information
• Outstanding Shares: 48,245,532 (2012)
• 48,341,785 (2010) 47,565,299 (2011)
• Net Income per Share: $4.29, $5 (2010,2011)
• Dividend Per Share: $1.90, $2.20 (2010,2011)
Financial Information (USD)
(2010/2011/2012 9 Months)
• Net Sales:
• 2.334/2.324/1.828 Billion
• Gross Profit:
• 1.109 Billion/1.145 Billion/946.19 (Mil.)
• Gross Profit (% sales):
• 47.5%/49.3%/51.7%
• Net Income
• 264.46/303.20/271.47 (Mil.)
Financial Chart (Mil. Euro)
Financial Chart (Mil. USD)
Net Sales Geographic
• Europe
• 29% (2010) 28% (2011)
• North America
• 42% (2010) 40% (2011)
• Developing Market
• 29% (2010) 32% (2011)
Net Sales By Category
• Stationary
• 32% (2010-12)
• Lighters
• 26% (2010) 28% (2011) 28% (2012)
• Shavers
• 17% (2010) 18% (2011) 18% (2012)
• Other
• 5% (2010-12)
• Advertising/Promo
• 20% (2010) 17% (2011) 17% (2012)
Net Sales By Category
BIC Disposable Lighter
• Started 1972
• Uses high-tech manufacturing process
• It produces lighters in four factories located in France,
Spain, the United States and Brazil.
• 5 Million lighters manufactured daily
• Each lighter undergoes more than 50 automated
quality and security test
BIC Factory
• BIC factory operatione
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Manufacturing of primary parts
Sub-assembly
Automatic gas filling
Assembling, Controlling, and packaging
• 3 Principles of Lighter Design
• Saftey&Quality, Consumer Friendliness, Value for money
Lighter Components
Gas Reservoir
• 1)Body-plastic
• 2)Base-plastic
• 3)Ball-metal
Lighting mechanism
• 4)Flint spring
• 5)fork spring
• 6)valve-steel
• 7)jet-steel
• 8)flint-flint
• 9)Fork-pastic/steel
• 10)Spark Wheel-serrated steel
Safety
• 11)Hood-steel
• 12)Guard-steel
Raw Materials Used/Cost %
• Plastics- 39%
• Delrin is a high grade plastic resin
• Metals-23%
• Ink and Solvents-6%
• Packaging and Other-32%
Lighter Financial Information
• Total Units Produced (Billions):
• 1.224 (2010) 1.318 (2011)
• Sales Revenue (Million USD):
• 612.78 (2010) 651.01 (2011) 518.98 (2012)
• Variable Cost (Million USD)
• 391.52 (2010) 396.37 (2011) 316.71 (2012)
• Total Contribution Margin (Million USD)
• 221.25 (2010) 254.65 (2011) 202.26 (2012)
• Contribution Margin %
• 36.1% (2010) 39.1% (2011) 38.97%
Per Unit Breakdown 2011
• Revenue Per Unit: .4939
• Variable Cost Per Unit: .3007
Materials-40% (.12028)
Labor-25% (.075)
Manufacturing Overhead-35% (.105)
• Profit Per Unit: .1932
Materials Cost Per Unit
• Plastics: .047
• Metal: .028
• Ink: .007
• Packaging: .038
Overview
BIC lighters account for28% of the companies
revenue
Post a consistent 30-40% Contribution margin as
percent of sales
Gross Profit for lighters 2011: 199.8 Million Euro
Refrences
• http://www.bicworld.com/
• http://www.bicworld.com/en/finance/index/