EssilorLuxottica 1st Half Net Profit, Revenue Rise -- Update

   By Cristina Roca 
 

EssilorLuxottica SA (EL.FR) said Wednesday that first-half earnings and revenue rose, and backed its 2019 view.

The Franco-Italian company reported net profit of 1.1 billion euros ($1.23 billion), up 6.8% compared with a pro-forma figure of EUR1.03 billion the year previous.

The company--which was created in October 2018 from the combination of optical-lens manufacturer Essilor and luxury eyewear maker Luxottica--said revenue rose 7.3% to EUR8.78 billion. At constant currencies, revenue rose 3.9%, EssilorLuxottica said.

The company's lenses & optical instruments category increased revenue by 4.9% at constant exchange rates, whereas sunglasses & readers were up 8.4% at constant exchange rates.

EssilorLuxottica backed its full-year view. For 2019, the company has guided for sales growth of 3.5%-5% at constant exchange rates and sees net profit for the period, adjusted for the expenses from the merger and other special items, growing at 1-1.5 times the pace of sales growth.

Separately Wednesday, the company said it has agreed to buy a 76.7% stake in Grandvision NV (GVNV.AE) for EUR28 a share from HAL Trust (HAL.AE), putting a value of EUR7.12 billion on the Dutch optical company.

The acquisition will help EssilorLuxottica expand its optical retail network by adding over 7,200 stores, the company said.

Write to Cristina Roca at [e-mail]; @_cristinaroca

(END) Dow Jones Newswires

July 31, 2019 02:03 ET (06:03 GMT)

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