EssilorLuxottica: EssilorLuxottica to Prepare for Recovery by Preserving Cash and Supporting Employees
April 20 2020 - 01:00AM
EssilorLuxottica: EssilorLuxottica to Prepare for Recovery by
Preserving Cash and Supporting Employees
EssilorLuxottica to Prepare for
Recoveryby Preserving Cash and Supporting
Employees
Charenton-le-Pont, France (April 20,
2020 – 7:00am) – EssilorLuxottica announces today further
measures to respond to the COVID-19 pandemic and prepare the
Company for the recovery to come.
Prescription and optical activities, which
account for about 70% of Company revenue, are driven by structural
worldwide needs for better vision. Experience from previous
economic downturns suggests that prescription purchases will be
delayed during the crisis, but not cancelled. Thanks to its mission
to help people see more, be more and live life to its fullest, the
Company is fully equipped to meet the resilient pent-up demand
which is likely to materialise when the economy stabilizes.
With this long-term view, EssilorLuxottica aims
to manage a temporary decline in activity and protect its balance
sheet while preparing itself to seize new opportunities in the
eyecare and eyewear industry from the second half of the year
onwards.
The Board of Directors decided not to submit any
dividend distribution to the Annual Shareholders’ Meeting of June
25, 2020. It will further assess the state of the business in the
second half of the year and the efficacy of all the measures
undertaken to face the COVID-19 outbreak. If the recovery is solid
enough, the Board of Directors may propose a special dividend
payment before the end of 2020.
The Board of Directors also asked the management
team to work on a series of measures aimed at reducing operating
and cash expenses within the Company, including the reduction or
deferral of parts of its managers’ compensations. The Board of
Directors voted to apply the latter measure to its own members by
reducing their attendance fees by 50%.
Finally, in line with the historical values of
Essilor and Luxottica, the Board of Directors approved the launch
of a Euro 100 million COVID-19 fund to protect the Company’s human
capital. This fund will support employees and their families in
need.
EssilorLuxottica is a global leader in the
design, manufacture and distribution of ophthalmic lenses, frames
and sunglasses. Formed in 2018, its mission is to help people
around the world to see more, be more and live life to its fullest
by addressing their evolving vision needs and personal style
aspirations. The Company brings together the complementary
expertise of two industry pioneers, one in advanced lens technology
and the other in the craftsmanship of iconic eyewear, to set new
industry standards for vision care and the consumer experience
around it. Influential eyewear brands including Ray-Ban and Oakley,
lens technology brands including Varilux® and Transitions®, and
world-class retail brands including Sunglass Hut and LensCrafters
are part of the EssilorLuxottica family. In 2019, EssilorLuxottica
had over 150,000 employees and consolidated revenues of Euro 17.4
billion. The EssilorLuxottica share trades on the Euronext Paris
market and is included in the Euro Stoxx 50 and CAC 40 indices.
Codes and symbols: ISIN: FR0000121667; Reuters: ESLX.PA; Bloomberg:
EL:FP.
CONTACTS
EssilorLuxottica Investor
Relations(Charenton-le-Pont) Tel: + 33 1 49 77 42
16(Milan) Tel: + 39 (02) 8633 4870E-mail:
ir@essilorluxottica.com |
EssilorLuxottica Corporate
Communications(Charenton-le-Pont) Tel: + 33 1 49 77 45
02(Milan) Tel: + 39 (02) 8633 4470E-mail:
media@essilorluxottica.com |
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