Main future investments In 2020, the Group will continue investing in production, development of the retail network, integration activities, M&A and partnerships projects. The Lenses & Optical instruments division posted another strong full year through a continued focus on its go to market strategy in the core United States lens business along with strong e-commerce growth. And in China, Essilor worked with the Huoqiu County to eliminate poor vision in the county within three years. Cost of net debt is adjusted for Euro 9 million corresponding mainly to non-recurring financial expenses linked to early repayment of debt at Luxottica level in the context of the restructuring and centralization of financial debt at EssilorLuxottica level. Moreover, in the wake of this incident, Essilor International reorganized its Treasury and local management in Thailand. Full year 2019 results Uplift in Sales and Net Profit growth Strong foundation to accelerate synergy delivery ... | November 29, 2020 Operating cash-flow before changes in working capital amounted to Euro 3,351 in 2019.Changes in working capital requirement amounted to Euro 52 million against Operating cash-flow.Capital expenditures amounted to Euro 903 million, representing 5.2% of Group’s revenue.The Free Cash Flow7 normalized for IFRS 16 impacts amounted to Euro 1,825 million. In Brazil, the solid dynamics through the first nine months eased as the focus shifted to the Transitions® Signature® GEN 8™ launch anticipated in the earlier part of 2020. Essilor, for its part, performed strongly. Hong Kong confirmed to be a drag, with no signs of improvement, while GMO was impacted by protests in Chile and Ecuador in the last quarter of the year. A dedicated team was set up, reporting to the CEO of Essilor International, to take action in three key areas: Additional measures have been initiated and are in the process of being implemented to enhance the Group’s control environment. The abovementioned political unrests in Chile and Ecuador affected the sales performance of GMO in the last quarter of the year, negative in sales and comparable store sales5. Until 2019, the brand was under the Luxottica Group. The company continued to develop its STARS program, thanks to top key accounts, and related turnover experiencing a further acceleration, up by more than 50% compared to the fourth quarter of last year. Direct e-commerce grew double digit across all the platforms in the full year, mostly driven by North America that posted in the fourth the best quarter of the year. Weighted average number of shares outstanding: Earnings per share (EPS) for net profit attributable to owners of the parent: Net profit attributable to owners of the parent, Equity attributable to non-controlling interests, Expense arising from share-based payments, Disposal of property, plant and equipment and intangible assets, Acquisitions of businesses, net of cash acquired, Transactions with non-controlling interests, Cash payments for principal portion of lease liabilities, Issuance of bonds, private placements and other long-term debts, Repayment of bonds, private placements and other long-term debts, Changes in other current and non-current borrowings, Cash and cash equivalents at the beginning of the financial year, Effects of exchange rate changes on cash and cash equivalents, Strong revenue growth at constant exchange rates, Direct e-commerce, which represented around 5% of consolidated revenue, grew by 16% at constant exchange rates, On a geographical basis at constant exchange rates, Key investment fueled new product launches (notably Transitions. Fourth-quarter 2019 revenue by geographical area. Webcasts; Archive. Revenue in Japan got a lift from value-added lenses and a series of commercial successes with optical chains.The Sunglasses & Readers division also saw double-digit revenue growth in the region with excellent results at Xiamen Yarui Optical (BolonTM and MolsionTM) in optical frames and robust online sales. This has been defined as a priority and will be monitored as such. The Lenses & Optical Instruments division grew by 5.5% at constant exchange rates2 in 2019, for total sales of Euro 6,791 million. Performance of the sun category stood out in the fourth quarter. Sunglass Hut posted positive performance building on a winning omnichannel proposition, further articulated and resonating well with its customers. The Sunglasses & Readers division contributed modestly to regional growth during the quarter. Similar to the full year trend, contact lens distribution activities contributed to growth.Sunglasses & Readers performance in the United States was driven primarily by FGX during the fourth quarter.Trends in the Equipment division moderated after a particularly strong third quarter and an elevated prior year comparison base. However, since the 2018 information presented in the statement of profit or loss is affected by the accounting of the combination between Essilor and Luxottica, the financial information deemed relevant to compare 2019 performance is based on the restated pro forma1 information for the year ended December 31, 2018. In this same spirit of raising awareness on good vision, Essilor made presentations in different parts of the world to leverage the report it published on the sidelines of the last United Nations General Assembly session, entitled “Eliminating Poor Vision in a Generation: What will it take to eliminate uncorrected refractive errors by 2050?”. On the opposite, Hong Kong did not improve, deteriorating further in Retail sales and comparable store sales5. Publication of the 2019 Interim Financial Report Charenton-le-Pont, France (July 31, 2019) - The Board of Directors of EssilorLuxottica met yesterday to approve the condensed. 2016 ANNUAL REPORT 9.1 MB. In Retail, Australia and New Zealand kept on a nice growing trajectory in both optical at OPSM, posting the 14th consecutive quarter of positive comps5/sales, and sun business at SGH, consistently in terms of sales and comparable store sales5 growth, reaping the fruits of the store refurbishment program carried out last year. In Bhutan, 30,000 pairs of glasses have been delivered to date to make this country the first in the world to eliminate poor vision. This translated into strong revenue, free cash flow and net profit growth, in line with guidance. Uplift in Sales and Net Profit growth Strong foundation to accelerate synergy delivery. Publication of the 2019 Interim Financial Report. Furthermore, EssilorLuxottica shareholders rejected two additional resolutions, which had been added on the agenda of the Annual General Meeting following requests from some of the Company’s shareholders received on April 18, 2019. As the company had only been in existence since October 2018 the Annual report contains pro forma results on the basis that Essilor Luxottica had existed for the Full Year 2018. Recovery of misappropriated funds: The company progressed with freezing funds on different bank accounts in several jurisdictions. Elsewhere in Europe, revenue was either flat or slightly lower. Canada and sales of Transitions to other lens casters were headwinds while contact lens distribution activities added to growth. 2019 was positive for Luxottica in the region as a whole, with growing sales at constant exchange rates2 in both Wholesale and Retail divisions. Recently formed partnerships contributed to growth at constant exchange rates2, particularly in Mexico where sales expanded at a double-digit rate during the fourth quarter. EssilorLuxottica can rely on a worldwide network of plants and laboratories, which allow flexibility and continuity. In Europe revenue increased by 5.7% to Euro 971 million (+4.9% at constant exchange rates2). With respect to products, performance was driven by digitalization, new generation surfacing machines and coating machines. Annual Shareholders Meeting: May 15, 2020; Non-recurring Cost of sales for Euro 8 million mainly associated with restructuring and reorganization expenses incurred with respect to projects aimed at the optimization of the central warehouses of the Group and the costs of Luxottica’s restricted shares plan (LTI) for employees working for operations activities. The brand notably solidified its leadership in fishing stores, selling to fishing enthusiasts and those living near beaches, lakes and rivers. The comparability in 2019 consolidated financial statements is still affected by the EL Combination which occurred on October 1, 2018. 2015 ANNUAL REPORT 4.3 MB. Fraudulent financial activity was discovered at one of Essilor International’s plants in Thailand. It continued to diversify its distribution network in the United States and to expand its international and online operations.The Equipment division posted a modest decline for the year, owing mainly to softer fourth quarter dynamics, as key customers work to absorb capacity from recent investment programs. EssilorLuxottica reported adjusted6 tax expense of Euro 618 million, reflecting an adjusted6 tax rate of 23.1% for 2019 compared to an adjusted6 tax rate of 24.1% in the prior year resulting from a more favorable geographical mix of earnings and from a positive closing of certain tax audits. 2018 was characterized by one-off investments for the new Logistics plant in Italy, the remaining portion of recurring investment is growing to support the group’s growth in the areas of IT and the development of the retail network. centralization of the Group warehouses removing stock in store; closing down some local warehouses) as well as those related to a change in the Group business model (e.g. The report quantifies the scale of uncorrected poor vision in the world and recommends a cumulative investment of $14 billion over the next 30 years to eliminate it.In 2019, Essilor worked toward this goal through partnerships to eliminate poor vision in many regions. Finally, Persol opened its first store in Europe (in Milan). ... • Mr. Eric Léonard, a French national, co-Chief Integration Officer of EssilorLuxottica The appointments will be effective upon and subject to closing of the Transaction, namely the sale of HAL’s essilorluxottica X This website or third-party tools used by the site itself use the cookies necessary for operation and useful for the objectives illustrated in the cookie policy, including the possibility of sending you advertisements according to your interests. In particular, management adjusted the following measures: Gross profit, Operating expenses, Operating profit, Profit before taxes and Net profit. EssilorLuxottica: Publication of the 2019 Interim Financial Report Publication of the 2019 Interim Financial Report. Brazil confirmed sound performance in the fourth quarter, even accelerating in retail sales at constant exchange rates2, essentially boosted by SGH comparable store sales5. These adjustments are described below. Retail sales increased soundly in the quarter in high-single digit area, posting its 24th consecutive quarter of turnover expansion. In Nepal, the company signed a letter of intent to provide access to eye care to the 350,000 residents of the Bhaktapur district. Selling costs of Euro 4,595 million to support EssilorLuxottica’s top line growth, positively impacted by the winding down of legacy operations at Sears Optical Retail. EssilorLuxottica’s revenue amounted to Euro 17,390 million and increased by 4.4% at constant exchange rates2 in 2019, in the upper half of the Group’s 3.5% to 5% outlook. Legal action: Criminal charges have been filed against the perpetrators and beneficiaries of the fraud in jurisdictions, and all legal options for holding the relevant third parties liable are considered to allow the Company to obtain damages commensurate with the injury suffered. Full year 2019 growth was further boosted by robust engagement with Luxottica both for select key accounts and sales of value added lenses though the Group’s retail channels. Research and development costs of Euro 291 million, as the Group continues to invest the same portion of its revenue behind innovation. *** Including Share of profit of associates. Target Optical and EyeMed confirmed their sound growth path, while Sears continued to be a heavy drag. In Asia, Oceania and Africa, revenue increased by 7.4% to Euro 2,892 million (+5.4% at constant exchange rates2). Accordingly, in order to provide additional comparative information on the results for the period under review compared to previous periods, to reflect the EssilorLuxottica actual economic performance and enable it to be monitored and benchmarked against competitors, some measures have been adjusted (“adjusted measures”). Excerpts from the full year 2019 management report, Full year 2019 revenue by operating segment. Charenton-le-Pont, France (March 8, 2019) - The Board of Directors of EssilorLuxottica met on March 7, 2019 to approve the financial statements for 2018. Based on this assumption, and excluding any contribution from GrandVision, EssilorLuxottica expects to grow in sales and profits. In North America, revenue increased by 7.6% to Euro 2,273 million (+4.3% at constant exchange rates2). The Lenses & Optical Instruments division generated significantly improved growth at constant exchange rates2 for the full year 2019 when compared to 2018 consisting of balanced growth in Brazil and Spanish speaking markets through most of the year. In 2018, EssilorLuxottica had nearly 150,000 employees and pro forma consolidated revenues of approximately Euro 16.2 billion. Conversely, Brazil was among the top performers and recorded a sustained growth, at high single digit pace during the twelve months, boosted by STARS and Óticas Carol (both meaningfully increasing the number of doors). Annual Report 2019. The Retail business had a strong year with Target Optical and EyeMed leading the way at double-digit sales growth. After having bought the assets of the laboratory of Devlyn Holdings, Essilor signed a supply contract with Opticas Devlyn, the leading optical chain in Mexico, which boosted growth in constant currency terms. All these measures are aimed at reducing the overall financial impact for the Company, from the Euro 185 million currently recorded in its accounts. The EssilorLuxottica share trades on the Euronext Paris market and is included in the Euro Stoxx 50 and CAC 40 indices. 2015 ANNUAL REPORT. In 2019, Europe continued to contribute to the overall Luxottica growth, with a positive evolution at both Wholesale and Retail divisions, supported by best-selling proprietary brands (also online) as well as main luxury licenses. 2019 is the first year in which EssilorLuxottica’s consolidated statement of profit or loss shows the full year performance of both Essilor’s and Luxottica’s businesses. EssilorLuxottica is a global leader in the design, manufacture and distribution of ophthalmic lenses, frames and sunglasses. These investments include mainly the effects of the business combinations completed in 2019, which include mainly Barberini S.p.A., the world's leading optical glass sun lens manufacturer, as well as the acquisitions of Brille 24 in the online business, Devlyn in Mexico, Future in Sweden, and Optimed in the instruments division. Contingency plans can be activated in case of a protracted pandemic. Discover L’Oréal’s 2019 Annual Report. The crisis of Sears had a significant impact on the overall performance of the Retail business leading to the decision to exit the banner by the end January 2020. Additional funds are currently being traced. Where to Invest $10,000; 50 Companies to Watch in 2018 ... 2019 – 7:00am) – EssilorLuxottica today announced that consolidated revenue for the first quarter of 2019 … The Sunglasses & Readers division performed well in 2019, with revenue rising 12.5% to Euro 885 million (+8.9% at constant exchange rates2). The EssilorLuxottica 2019 Interim Financial Report has been published today. (c) Net Debt is presented in the Note 22 - Financial debt, including lease liabilities to the consolidated financial statements; its components are also reported in the paragraph Consolidated statement of financial position, Net Debt and cash flow. E-commerce activity in Brazil supported regional growth. These financial statements were audited by the Statutory Auditors whose certification report is in the process of being issued. At the current level, inventory is sufficient to meet several weeks of demand.In terms of production, EssilorLuxottica plants in China are currently operating at slightly reduced capacity, which is quickly normalizing, while the plants in Italy and all other locations are currently running at full capacity. Australia, Mainland China, South East Asia and Middle-East drove the group’s performance in the area, more than balancing the decline in Hong Kong and travel retail business, while Japan and Korea closed the year at around the par. Conference callA conference call in English will be held today at 11 am CET.The meeting will be available live and on a replay mode at:https://channel.royalcast.com/webcast/essilorluxotticaen/20200306_1/. The Wholesale division saw robust trends in particular in Spain, Portugal, Greece, UK, Turkey and Eastern Europe. All major countries showed a positive evolution in the division, led by Sunglass Hut in Continental Europe and Salmoiraghi & Viganò in Italy. FraudThe Company announced on December 30, 2019 that it had discovered fraudulent financial activity at an Essilor plant in Thailand. The second half of the year decelerated versus the first, particularly due to weaker Wholesale in the third quarter (mostly reflecting political turmoil in Hong Kong, dropping travel retail business and unfavorable weather conditions in Japan), but turning positive in the fourth quarter. Growth in the Lenses & Optical Instruments division remained in double digits at constant exchange rates2 through a mix of strong underlying trends and new partnerships. Wholesale growth was basically driven by Mainland China, where the business restarted on much cleaner basis. In Bhutan, 30,000 pairs of glasses have been delivered to date to make this country the first in the world to eliminate poor vision. In Europe Sunglass Hut and Salmoiraghi & Viganò kept nicely growing, like both optical and sun business did in Australia and sun in Brazil. Special Reports. They would aim at optimizing the Company’s global infrastructure. * 2018 information has been restated following the application of IFRS 16 Leases. 2017 Annual Report 982 KB. In 2019, EssilorLuxottica had over 150,000 employees and consolidated revenues of Euro 17.4 billion. The second half of the year slightly slowed down compared to the first, mostly due to a weakening performance in the fourth quarter in Mexico. Adjusted6 Gross profit: +6.6% at current exchange rates and 3.5% at constant exchange rates2. Lenses & Optical Instruments grew by 5.2% at constant exchange rates, Sunglasses & Readers grew by 10.1% at constant exchange rates, Wholesale rose by 2.4% at constant exchange rates, Retail continued on its solid path, up 4.6% at constant exchange rates. 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