EssilorLuxottica Reports Lower 2018 Net Profit, Sets out 2019 Goals

   By Cristina Roca 
 

EssilorLuxottica SA (EL.FR) said Friday that its 2018 net profit declined when adjusting for the merger of its two constituent businesses, and set goals for the year ahead.

Reported net profit at the company, which was created in October 2018 from the combination of France's optical-lens manufacturer Essilor and Italy's luxury eyewear maker Luxottica, was 1.16 billion euros ($1.31 billion) compared with EUR1.04 the year before. On an adjusted pro-forma basis, net profit was EUR1.87 billion, representing a 1.7% decline from 2017.

EssilorLuxottica reported revenue of EUR10.8 billion for 2018. On an adjusted pro-forma basis, revenue for the year was EUR16.16 billion euros, representing a 1.2% year-on-year decline. EssilorLuxottica said this represented 3.2% revenue growth at constant exchange rates, and that both the Essilor and Luxottica businesses contributed to the result.

EssilorLuxottica also reported separate 2018 figures for each of its two constituent businesses. Essilor's 2018 revenue was EUR7.46 billion, up 0.8% from 2017. Luxottica's sales for the year were EUR8.93 billion, down 2.8% from the year before due to currency headwinds. Luxottica's net profit for the year was EUR900 million, down 14% year-on-year, EssilorLuxottica said.

The company declared a dividend of EUR2.04 per share, to be approved at its annual meeting on May 16.

For 2019, EssilorLuxottica says it expects its sales to grow by between 3.5% to 5% at constant exchange rates, and that it sees its net profit, adjusted for the expenses from the Essilor-Luxottica combination and other unusual transactions, growing at 1-1.5 times the pace of sales growth.

EssilorLuxottica said that it expects the synergies from the merger of Essilor and Luxottica to range from EUR420 million-EUR600 million as a net yearly impact on its operating profit within the next five years. It also said it sees revenue synergies in the EUR200 million to EUR300 million range.

The eyewear company said it was considering governance issues, but gave no update on its plans regarding its leadership.

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

(END) Dow Jones Newswires

March 08, 2019 03:28 ET (08:28 GMT)

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