EssilorLuxottica Warns of Macro Clouds Ahead; Raises Dividend for 2022
February 23 2023 - 1:52AM
Dow Jones News
By Joshua Kirby
EssilorLuxottica SA said Thursday that inflation and
macroeconomic dynamics could affect its performance in the coming
year, as revenue growth slowed at the end of 2022, but raised its
dividend amid higher profitability.
The Franco-Italian eyecare major reported 2022 sales of 24.49
billion euros ($25.98 billion), 7.5% higher than the year before at
constant currency and adjusted for the integration of Dutch
retailer GrandVision.
Analysts had forecast sales of EUR24.62 billion, according to a
poll of estimates compiled by FactSet.
In the fourth quarter, growth slowed to 3.9% from the 8.2% the
group booked the previous quarter, due in part to a tough
comparison base after strong growth the previous year,
EssilorLuxottica said.
The group made an operating profit of EUR4.12 billion, compared
with EUR3.47 billion previously; the operating margin rose seven
basis points to 16.8%.
Looking ahead, EssilorLuxottica said it expects tighter monetary
policy and rising inflation globally to affect its performance in
2023, but backed mid-term targets of annual organic revenue growth
in the mid-single digits to 2026, as well as an adjusted operating
margin of 19%-20% by the end of the same period.
The group will propose a dividend for 2022 of EUR3.23 a share,
up from EUR2.51 paid last year.
Write to Joshua Kirby at joshua.kirby@wsj.com;
@joshualeokirby
(END) Dow Jones Newswires
February 23, 2023 01:37 ET (06:37 GMT)
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