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PARIS – EssilorLuxottica, the newly formed eyewear behemoth, reported combined results on Friday for the first time since the merger of Essilor and Luxottica on Oct. 1, 2018.

For full-year 2018, net profit on a pro forma, adjusted basis – which consolidates the two companies’ results starting from Jan. 1, 2018, and adjusts them from one-off or otherwise unusual expenses – declined 1.7 percent to 1.87 billion euros.

Operating profit was down 4.8 percent to 2.57 billion euros, while sales eased 1.2 percent to 16.16 billion euros. At constant exchange rates, sales were up 3.2 percent, with both Essilor and Luxottica contributing to the gain.

“The contribution of Luxottica is significant: net sales, profitability and free cash flow all show positive growth, excluding the exchange-rate effect,” Leonardo Del Vecchio, executive chairman of EssilorLuxottica, said in a statement.

On a pro forma, constant-exchange rate basis, the company’s sales improved in all regions – up 2.6 percent in North America, 1.3 percent in Europe, 6.6 percent in Asia, Oceana and Africa, and 6.5 percent in Latin America.

All but one operating segment registered sales growth in the year in pro forma, constant-exchange terms. From the Essilor business, sales of lenses and optical instruments were up 4.8 percent; sunglasses and readers sales advanced 7.6 percent, while equipments sales were up 9.1 percent.

From the Luxottica business, the wholesale operating segment’s sales declined 1 percent, and the retail operating division’s revenues advanced 3 percent.

On a reported basis, net profit for EssilorLuxottica was 1.16 billion euros, and operating profit came in at 1.36 billion euros. The company’s sales stood at 10.8 billion euros.

EssilorLuxottica set guidance for 2019. On a constant-exchange rate basis, it expects adjusted net profit growth at between 1- and 1.5-times sales, and adjusted operating profit growth at 0.8- to 1.2-times sales. Sales are projected to increase between 3.5 percent and 5 percent.

The merger of Essilor and Luxottica was first revealed in January 2017 and promised to transform the eyewear sector’s global landscape and spark both further technological innovations and deals.

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