EssilorLuxottica Reports Lower 2018 Net Profit, Sets out 2019 Goals
March 08 2019 - 3:43AM
Dow Jones News
By Cristina Roca
EssilorLuxottica SA (EL.FR) said Friday that its 2018 net profit
declined when adjusting for the merger of its two constituent
businesses, and set goals for the year ahead.
Reported net profit at the company, which was created in October
2018 from the combination of France's optical-lens manufacturer
Essilor and Italy's luxury eyewear maker Luxottica, was 1.16
billion euros ($1.31 billion) compared with EUR1.04 the year
before. On an adjusted pro-forma basis, net profit was EUR1.87
billion, representing a 1.7% decline from 2017.
EssilorLuxottica reported revenue of EUR10.8 billion for 2018.
On an adjusted pro-forma basis, revenue for the year was EUR16.16
billion euros, representing a 1.2% year-on-year decline.
EssilorLuxottica said this represented 3.2% revenue growth at
constant exchange rates, and that both the Essilor and Luxottica
businesses contributed to the result.
EssilorLuxottica also reported separate 2018 figures for each of
its two constituent businesses. Essilor's 2018 revenue was EUR7.46
billion, up 0.8% from 2017. Luxottica's sales for the year were
EUR8.93 billion, down 2.8% from the year before due to currency
headwinds. Luxottica's net profit for the year was EUR900 million,
down 14% year-on-year, EssilorLuxottica said.
The company declared a dividend of EUR2.04 per share, to be
approved at its annual meeting on May 16.
For 2019, EssilorLuxottica says it expects its sales to grow by
between 3.5% to 5% at constant exchange rates, and that it sees its
net profit, adjusted for the expenses from the Essilor-Luxottica
combination and other unusual transactions, growing at 1-1.5 times
the pace of sales growth.
EssilorLuxottica said that it expects the synergies from the
merger of Essilor and Luxottica to range from EUR420 million-EUR600
million as a net yearly impact on its operating profit within the
next five years. It also said it sees revenue synergies in the
EUR200 million to EUR300 million range.
The eyewear company said it was considering governance issues,
but gave no update on its plans regarding its leadership.
Write to Cristina Roca at cristina.roca@dowjones.com;
@_cristinaroca
(END) Dow Jones Newswires
March 08, 2019 03:28 ET (08:28 GMT)
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