MILAN — Italian eyewear maker Marcolin SpA ended 2010 with a bang, posting the strongest set of financial results in its 50-year history. Boosted by cost cutting and a new demand planning system, net profits more than doubled to 18.6 million euros, or $24.5 million, compared with 7 million euros, or $9.7 million, in 2009.
This story first appeared in the March 23, 2011 issue of WWD. Subscribe Today.
Revenues, after having suffered a 3.5 percent decline in 2009, experienced an upturn last year, gaining 15.2 percent to 207.7 million euros, or $274.1 million.
For the 12 months through Dec. 31, earnings before interest, taxes, depreciation and amortization (EBITDA) also more than doubled to 31 million euros, or $40.9 million. Dollar amounts have been converted from the euro at average exchange rates for the year.
Chief executive officer Massimo Saracchi said the record results were the culmination of three years of hard work and that “now, we are focused on significantly improving these numbers from 2011 on and, at the same time, validating initiatives that will ensure new and significant growth in the years to come.”
Last month, Marcolin renewed its existing license with Tom Ford through to 2022 and, in the fall, plans to roll out the new eyewear collection of Diesel with which the manufacturer signed a five-year agreement at the end of last year.
The company is optimistic about 2011, having already registered promising signs following the presentation of the new Swarovski line in January and higher-than-expected orders for its Vista collections.
Geographically, sales were up across the board with single-digit percentage increases in Italy and Europe and a 48 percent boost in figures for the rest of the world. The company cited the Far East and Middle East as the best performing markets. The company said it would focus on growth in strategic markets this year, namely the Far East and the U.S.
By Dec. 31, the firm’s net indebtedness had fallen significantly to 8.6 million euros, or $11.3 million, compared with 23.8 million euros, or $33 million, at the end of the previous year.