EL Essilorluxottica

   By Cristina Roca 
 

EssilorLuxottica SA said Friday that revenue grew in 2019, and it raised the dividend as it guided for sales growth in 2020 despite the coronavirus epidemic.

The Franco-Italian optical giant reported net profit of 1.08 billion euros ($1.21 billion), flat compared with a restated figure of EUR1.08 billion the year previous and falling short of analysts' expectations of EUR1.56 billion, according to a FactSet consensus estimate.

Net profit adjusted for the Essilor-Luxottica merger and other one-offs rose 9.2% to EUR1.94 billion, the company said.

The company--which was created in October 2018 from the combination of optical-lens manufacturer Essilor and luxury-eyewear maker Luxottica--said revenue was EUR17.39 billion, up from a pro forma figure of EUR16.19 billion in 2018 and broadly in line with analysts' expectations of EUR17.36 billion, according to a consensus estimate provided by FactSet.

At constant currencies, revenue rose 4.4%, EssilorLuxottica said.

The company's lenses & optical instruments category increased revenue by 5.5% at constant exchange rates, whereas sunglasses & readers were up 8.9% at constant exchange rates.

"The current Covid-19 epidemic has a negative impact on the company's business in Greater China, which represents approximately 5% of consolidated revenue," EssilorLuxottica said, adding that its revenue in other regions has also been slightly hit by the virus.

EssilorLuxottica issued its guidance for 2020 based on the assumption that the epidemic will subside in the next few months.

It guided for sales growth of 3%-5% at constant exchange rates, and said it sees operating profit for the period, adjusted for the expenses from the Essilor-Luxottica merger and other special items, growing at 0.7 times to 1.2 times the pace of sales growth. Adjusted net profit, adjusted for the same factors, should also grow at 0.7 times to 1.2 times the pace of sales growth, EssilorLuxottica said.

The eyewear company declared a dividend of EUR2.23 a share, compared with EUR2.04 a share for 2018.

Write to Cristina Roca at cristina.roca@dowjones.com; @_cristinaroca

(END) Dow Jones Newswires

March 06, 2020 01:48 ET (06:48 GMT)

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