BIC APP Reports Q1 Financials

Decline Follows Similar Outcome In 4th Q 2012

BIC APP Reports Q1 FinancialsBIC APP, the parent division of Counselor Top 40 supplier Norwood (asi/74400) and BIC Graphic North America (asi/40480), has reported that its 2013 first-quarter sales decreased 11.2% on a comparable basis to 53 million euros ($70 million). The Q1 decline follows a similar outcome in the fourth quarter of 2012, when sales dipped to 89.1 million euros ($119 million), a year-over-year decrease of 12.2%.

"We continued to be negatively impacted from the consequence of the ERP implementation in North America and declining markets in southern Europe," BIC said in a statement. "Despite BIC APP's disappointing first-quarter results, we are confident that our new management will be able to turn the business around."

BIC and Norwood recently reported to Counselor that its 2012 North American ad specialty sales were $324 million, a 7.4% decrease from $350 million in 2011. BIC APP reported overall 2012 revenues – which include sales of promotional products in Europe – of 291.1 million euros ($389.4 million), a decrease of 9.2% on a comparable basis.

In its latest outlook, BIC APP is now forecasting a potential 2013 sales decline in the low to mid-single digits. Earlier this year, BIC Group officials said in a public statement that they expect BIC APP to generate "low to mid-single-digit annual sales growth within the next three to five years."

To reach those long-term expectations, Edgar Hernandez was tapped last December to lead BIC APP, replacing Nicolas Paillot. Previously, Hernandez was BIC International's general manager for developing markets. BIC announced Paillot was leaving the company at the close of 2012.