EssilorLuxottica Q2/H1 2024 Outcomes | INVISIONMAG.COM

(PRESS RELEASE) PARIS, FR — The Board of Administrators of EssilorLuxottica met on July 25, 2024 to approve the condensed consolidated interim monetary statements for the six months ended June 30, 2024. The Statutory Auditors have carried out a restricted assessment of those monetary statements.

Francesco Milleri, chairman and CEO, and Paul du Saillant, deputy CEO at EssilorLuxottica commented: “Within the first half of the yr, EssilorLuxottica’s technique continued to repay with all areas and companies contributing to constructive outcomes. With high line development, margin enlargement and file money circulate, the final six months additional solidified our long-term outlook, made potential due to the distinctive expertise and engagement of our 200,000 colleagues worldwide.

Immediately, our dedication to the 2 strategic pillars of med-tech and sensible eyewear is taking form, with Stellest seeing exponential development, the success of Ray-Ban Meta and Nuance Audio set to ascertain a brand new class available in the market. Introduced simply final week, the acquisition of Heidelberg Engineering will give us a brand new foothold within the medical ophthalmology area.

The third strategic pillar, our iconic manufacturers, will make the primary two extra accessible, consumer-friendly and related. With new collections coming from all our home and licensed manufacturers, together with our first ever for Moncler, and the introduced acquisition of Supreme, we’re precisely what we have to be: a tech-driven and brand-rich firm caring for and connecting with a whole bunch of tens of millions of individuals globally.”

Within the second quarter of the yr, EssilorLuxottica confirmed the sound development tempo of the enterprise it recorded within the first quarter. The Group’s income rose 5.2% at fixed alternate rates1 (+3.8% at present alternate charges) to Euro 6,955 million, on high of a robust efficiency in the identical interval of final yr (+8.0%) like within the first quarter. Within the first semester, the Group’s income grew by 5.3% at fixed alternate rates1 (+3.4% at present alternate charges) to Euro 13,290 million, in step with the long-term targets. The second quarter income efficiency was in continuity with the primary quarter tendencies additionally when it comes to the important thing development drivers. The expansion was fairly balanced throughout the areas, classes and channels.

Geographically, all of the areas rose high-single digit within the interval, excluding slower North America. EMEA stood out once more as essentially the most highly effective development engine for the Group, with each the channels contributing and optical retail comparable-store sales3 up double digits, additionally due to the rising penetration of the subscription mannequin. North America continued to be simply low-single-digit constructive, held again by nonetheless damaging comparable-store sales3 at Sunglass Hut and damaging tendencies with the ECPs not engaged in associate packages. In Asia-Pacific, Skilled Options and Direct to Shopper equally contributed to the stable gross sales efficiency, with Stellest and the myopia administration portfolio being the most important driver. Latin America sound development was based mostly on barely constructive Brazil and Mexico and hyperinflationary Argentina.

Commercial

Worth-mix performed a key position within the second quarter of the yr to maintain income development, because the Group continued to deploy innovation in lenses and frames and leverage the combo as a driver, and on the similar time applied a single-digit improve to its tariffs throughout the board.

The highest line development was effectively balanced additionally when it comes to product classes, with imaginative and prescient care and sun shades rising broadly on the similar tempo. As for the manufacturers, in lenses Stellest was nonetheless the champion rising above 80%, whereas Varilux and Transitions progressed at mid-single digit tempo; in frames, Ray-Ban posted a wholesome high-single-digit development pushed by each conventional eyewear and sensible glasses, whereas in license portfolio Prada was one of the best performing identify, up within the excessive teenagers.

By way of profitability, regardless of the persistence of a cloth inflation drag the Group managed to restart its margin enlargement journey, in step with its long-term targets. The adjusted gross revenue amounted to Euro 8,541 million within the first semester, reaching 64.3% of income, 20 foundation factors greater than H1 2023 (or +40 foundation factors at fixed alternate charges). The adjusted working revenue reached Euro 2,431 million within the first half, representing 18.3% of income, unchanged versus H1 2023, whereas at fixed alternate rates1 the margin expanded by 50 foundation factors to 18.8% of income.

The adjusted Group internet revenue amounted to Euro 1,746 million within the first half, representing 13.1% of income, in comparison with 12.9% in H1 2023, a margin accretion of 20 foundation factors, whereas at fixed alternate charges the margin expanded by 60 foundation factors.

Free money circulate amounted to Euro 971 million within the first six months of the yr, in comparison with Euro 954 million in the identical interval of final yr.

The Group ended the six months with Euro 2.16 billion in money and money equivalents and a internet debt6 of Euro 9.76 billion (together with Euro 3.51 billion lease liabilities).

Commercial

On the subject of the Group’s sustainability journey with the “Eyes on the Planet” program, EssilorLuxottica has embraced sustainability throughout its complete ecosystem, together with staff, suppliers, companions, and clients, with consciousness campaigns and concrete actions that assist 5 strategic pillars – Carbon, Circularity, World Sight, Inclusion and Ethics.

As a part of its long-term purpose to scale back the carbon footprint in its operations and worth chain, the Firm has lately submitted its near-term emission discount targets for scopes 1, 2 and three to SBTi for validation.

Lengthy-Time period Outlook
The Firm confirms its goal of mid-single-digit annual income development from 2022 to 2026 at fixed alternate charges (based mostly on 2021 professional forma income) and expects to attain an adjusted working revenue as a proportion of income within the vary of 19-20% by the tip of that interval.

Worker representatives appointed to the Board
Two board members, Ms. Margot Bard and Mr. Sébastien Brown, each staff of the Group, noticed their mandate renewed for a three-year interval by the Group Works Council to symbolize the staff on the Firm’s Board. It can expire on July 2, 2027.

Convention Name
A convention name in English will likely be held immediately at 6:30 pm CEST. The assembly will likely be accessible dwell and can also be heard later right here.

Forthcoming Investor Occasions

Commercial

• October 17, 2024: Q3 2024 Income
• November 12, 2024: J.P. Morgan International Luxurious & Manufacturers Convention in Paris
• November 13, 2024: Financial institution of America Shopper & Retail Convention in Paris