EssilorLuxottica 1st Half Earnings Rose Despite Headwinds, Backs Medium-Term Targets

By Joshua Kirby

EssilorLuxottica SA said Friday that first-half earnings rose on year on higher revenue and despite economic headwinds and China's pandemic situation, and backed its growth targets for the medium term.

The Franco-Italian eyewear group made an adjusted operating profit of 2.2 billion euros ($2.24 billion) in the half-year, rising 14% at constant currency from the same period last year on revenue of EUR11.99 billion, an increase of 9%, adjusted for the integration of Dutch optical retailer GrandVision.

The group's operating margin rose by one percentage point to 18.4%, and it made a net profit of EUR1.55 billion compared with EUR1.23 billion previously.

In the second quarter, revenue growth slowed to 7% from 12% the previous quarter. In North America, growth was hit by a tougher comparison base but also by worsening business conditions and stayed just positive, the Ray-Ban maker said. Asia-Pacific also remained slightly positive but mainland China booked falling sales amid pandemic-related restrictions, the company said.

Looking ahead, the company confirmed its target of annual revenue growth in the mid-single digits from this year to 2026, by which point it also aims to reach an operating margin of 19%-20%. It didn't set out any specific targets for 2022.

Write to Joshua Kirby at [e-mail]; @joshualeokirby

(END) Dow Jones Newswires

July 29, 2022 01:44 ET (05:44 GMT)

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