MILAN — Safilo Group SpA shares continued to climb on Wednesday morning on the Italian Stock Exchange, soaring 15 percent at 1.46 euros by 1:30 p.m. CET, following the strong 2021 performance reported by the Italian eyewear manufacturer the evening before. At the end of trading, shares closed up 14.13 percent at 1.45 euros.
For Intesa Sanpaolo, while the operating profit was “broadly in line” with its estimates, Safilo’s adjusted net was “much higher” than expected.
Safilo’s figures prove that the two-year turnaround plan “is bearing fruit,” according to Intesa Sanpaolo, which saw the first months of 2022 as “very encouraging.”
Mediobanca analysts also touted Safilo’s “good set” of 2021 results, underscoring and adjusted net profit that came in “materially above” the broker’s and consensus estimates.
Safilo’s net profit was “well above expectations” for Kepler, too. Earnings before interest, taxes, depreciation and amortization was at 8.4 percent of sales, close to the 2024 target of between 9 and 11 percent and Kepler analysts noted that, while Safilo did not provide a specific guidance, its EBITDA margin is expected to improve, also helped by the cost-savings plan and despite the inflationary pressures on logistic costs. This led Kepler to increase estimates by 7 to 8 percent waiting for Safilo’s first-quarter results for more clarity.
As reported, Safilo delivered 2021 results well above 2019 levels and returned to the black last year, thanks to a solid execution of its business transformation and a rebalancing of its brands.
The acquisitions of Privé Revaux and Blenders and the launch of the new licenses of David Beckham, Missoni, Levi’s, Isabel Marant, Ports and Under Armour, enabled Safilo to effectively compensate the business decline deriving from licenses terminated at the end of 2020 and at the end of June 2021, including Dior and Fendi.
Safilo has recently inked three new licenses, with Dsquared2, Carolina Herrera and Chiara Ferragni Collection.
A strong performance of its proprietary brands and of its prescription frames, as well as a jump in sales in the U.S. and on its online channel all contributed to Safilo’s progress in the year. Its online business now accounts for 13.4 percent of sales, up from 12.7 percent in 2020 and from 3.9 percent in 2019.
Smith’s goggles and helmets business soared, while sales of sunglasses, although turning positive in the second half, did not fully recover due to the challenging business environment. Prescription frames accounted for 40.4 percent of the total business, up from 37.8 percent in 2019.
In the 12 months ended Dec. 31, Safilo reported a net adjusted profit, excluding nonrecurring costs, of 27.4 million euros compared to the adjusted net loss of 50.1 million euros in 2020. In 2019, the adjusted net loss amounted to 6.5 million euros.
Sales in 2021 reached 969.6 million euros, up 26.3 at constant exchange rates compared to 780.3 million euros recorded in 2020. Compared to 2019, sales rose 7.5 percent.
The year 2022 started off very well, said chief executive officer Angelo Trocchia, with optical maintaining the growth pace of last year and the sun category showing the first positive signs.