PARIS — European eyewear giant EssilorLuxottica said it expects synergies from its recent merger to translate into an operating profit of up to 600 million euros and annual sales growth of approximately 5 percent by 2023.
The group, born from the merger between France’s Essilor and Italy’s Luxottica that was finalized in October 2018 to create the world leader in its domain, released the information after holding its 2019 Capital Markets Day in London on Wednesday.
By 4 p.m. CET on Thursday, the company’s stock was trading up 1.3 percent to 130.45 euros.
EssilorLuxottica said the merged group’s sales gains and cost reductions should lead to an adjusted operating profit of 300 million euros to 350 million euros by between 2019 and 2021, and 420 million euros to 600 million euros by between 2022 and 2023.
“The teams are working well together, and we are fully energized about what the future holds, not just for us, but for the entire industry,” Francesco Milleri, deputy chairman, chief executive officer of Luxottica group, said in a statement.
There had been a lot of turmoil in the group, with feuding factions between executives at Essilor and Luxottica. In May, they struck an agreement meant to resolve ongoing governance issues plaguing the merger project.
The board of directors had unanimously approved the plan for executive chairman Leonardo Del Vecchio and vice chairman Hubert Sagnières to hand integration responsibilities to Milleri, in charge of Luxottica group, and Laurent Vacherot, who heads Essilor International and became director of EssilorLuxottica.
The company’s board continues its search for a new group ceo by the end of 2020. Milleri and Vacherot have told the board they are not candidates. The recruitment is supported by two international executive search firms, Russell Reynolds Associates and Eric Salmon & Partners.
EssilorLuxottica was formed through a 46-billion-euro merger of Italy’s Luxottica, the producer of eyewear under license for brands including Giorgio Armani Group, Bulgari, Burberry, Chanel, Coach, Prada, Ray-Ban and Versace, and France’s Essilor, which makes lenses.
EssilorLuxottica keeps expanding. In July, the company said it had acquired a majority stake in GrandVision, which counts 7,200 stores worldwide.