The Board of Directors of Safilo Group S.p.A. approves the financial results for 2011

08/03/2012
Key economic and financial highlights (in millions of euro):

Net Sales • 1,101.9 in FY 2011: +6.0% at constant perimeter1 and exchange rates

EBITDA • 122.6 in FY 2011 (11.1% margin): +13.7%

EBIT • 86.2 in FY 2011 (7.8% margin): +27.1%

Net Profit • 27.9 in FY 2011 (2.5% margin) compared to 0.7 in FY 2010

Net Debt • 238.3 at the end of December 2011 from 239.4 at the end of September 2011 and 256.2 at the end of December 2010
• Net debt / EBITDA at 1.9x

Padua, March 8, 2012 – The Board of Directors of Safilo Group S.p.A. today approved the consolidated financial statements for 20112. The Board of Directors also reviewed the financial statements at December 31, 20112, which will be submitted for approval to the Shareholders’ Meeting called for April 27, 2012 in first call or for May 04, 2012 in second call.

In the fourth quarter of 2011, financial results remained healthy for Safilo, with trends substantially in line with the third quarter of the year. Top line growth was again driven by the strong performance of the Group’s licensed brand and own brand portfolio in the main fast-growing markets in Asia and Latin America as well as by the resilience of the US market.
In the quarter, the net result was positive and benefited from the good performance of the operating result.

Results in full year 2011 proved to be very solid for Safilo, underlining year-on-year improvements at all economic and financial levels. The Group’s 2011 revenues increased by 6.0% at constant perimeter1 and exchange rates, EBITDA and EBIT improved double-digit, driving the net result to a profit of Euro 27.9 million.

The Group finished the year with a strong balance sheet, with the financial leverage of net debt to EBITDA at 1.9x.

Roberto Vedovotto, Chief Executive Officer of the Safilo Group, commented:

“I would describe 2011 as a year of achievements and important changes for Safilo Group.

In 2011, we built up from the foundations laid down in 2010, recording meaningful economic and financial improvements.

Our results were positive throughout the entire year, with Asia and America remaining on track as growth engines while Europe was more challenging due to the economic and political turmoil which impacted the region starting from the second half of 2011.

In the year, the sales of our top licensed brands, Gucci and Dior, achieved important results in emerging markets and in mature countries, proving the brand success and strength of the product and distribution policies of the Group.

We were also very satisfied with the results recorded by the licenses of the Hugo Boss Group and Marc Jacobs as much as with the strong international expansion of Tommy Hilfiger.

During the year, we focused our efforts in line with the goal to become the leading pure wholesale player in the global eyewear industry and we worked out our strategies and actions towards this ambitious goal.

We enhanced our organizational and managerial structures to ensure a fast and efficient execution of our plans in all key business areas.

We implemented the rationalization strategy of our portfolio of licensed brands, focusing resources and know-how only on those brands which are relevant in the eyewear sector or have important growth opportunities going forward.
With the clear objective of achieving greater profitability through efficiency programs, we did not renew a number of small brands.

On the opposite side, we continued to scout for better opportunities, signing a new multi-year licensing agreement for the production and worldwide distribution of Céline eyewear, a prestigious brand in the high-end segment which is enjoying a worldwide strong brand recognition.

We worked hard at executing our strategy of building an important portfolio of Safilo own brands, with the goal to increase our market share through global brands which also cover diffusion, specialist and value for money segments.

We kept pushing on the expansion of our brand Carrera, which in 2011 reached above expectation results in the US and Latin American markets.

The announced acquisition of the Polaroid Eyewear business, in November 2011, represented a seal to our strategy on Safilo own brands. Polaroid is a high potential iconic brand that embodies the technological spirit of the inventor of the polarized sunglasses.

After its completion, expected by the end of the first quarter of 2012, we will have a strong brand to work with in many new markets and in a business segment where our presence is today not significant, thus enlarging the total reach of our Safilo’s Brands Division.”

In attached the official press release.
Last update: 08/03/2012, 18:26