Essilor: First-Half 2013 Results
3.7% Sales Growth at Constant Exchange Rates
Contribution from Operations of 18.3%
*Success of New Products
*Sustained Demand in Major Fast-Growing Markets
*Strong Momentum in the Acquisition Strategy
*High Prior-Year Comparatives
CHARENTON-LE-PONT, France -- August 29, 2013
The Board of Directors of Essilor International (Paris:EI) met yesterday to
approve the Company’s financial statements for the six months ended June 30,
2013. The auditors have performed a limited review of the consolidated
financial statements. Their report does not include any observations.
In € millions First-half First-half Change
Revenue 2,576 2,530 + 1.8%
Contribution from 472 454 + 4.0%
(% of revenue) 18.3% 17.9% + 40 bp
to Group equity 310 301 + 3.2%
Earnings per share 1.48 1.45 + 2.0%
Cash flow^(b) 473 445 + 6.3%
^(a) ^Operating profit before compensation costs for share-based payment
plans, restructuring costs, other income
^and expense, and goodwill impairment.
^(b) ^Net cash from operating activities before change in working capital
Commenting on these results, Hubert Sagnières, Chairman and Chief Executive
Officer of Essilor, said: “Our first-half results reflect Essilor’s ability to
implement operations worldwide while maintaining high margins. The Company’s
profitability improved thanks to new products and manufacturing efficiency,
despite the impact on sales growth of high prior-year comparatives."
During the first half, in a sluggish overall economic environment, Essilor
deployed its new products region by region and strengthened its geographical
presence through new partnerships.
The ramp-up of important innovations like the Varilux^® S series, growth in
the Xperio^® polarized lens category and, more generally, increasingly vibrant
demand across all regions and divisions helped to drive stronger sales
throughout the period. In the second quarter, combined growth in revenue at
constant exchange rates (like-for-like and bolt-on acquisitions) came to 5.3%,
a clear improvement over the first quarter (up 1.9%).
Overall, Essilor posted revenue growth at constant exchange rates of 3.7% in a
first half that was adversely affected by high prior-year comparatives and an
unfavorable operating environment. However, the Company’s profitability
improved considerably, with a contribution margin of 18.3%.
The highlights of the first half were:
*The success of the Crizal^® UV antireflective lens and the Varilux^® S
series progressive lens, two major innovations.
*Strong sales momentum in the main fast-growing markets (Brazil, China and
*Acceleration in bolt-on acquisitions^1 with new operations in Colombia and
Chile, two dynamic Latin American economies.
*A sharp improvement in gross margin (up 70 basis points) reflecting
Essilor’s ability to capture the value of innovations, enhance the
efficiency of production resources and integrate acquisitions.
*A 6.3% increase in cash flow and maintenance of a solid balance sheet.
^1 Acquisitions or local partnerships
In the second half, Essilor will pursue its innovation strategy, in particular
with the launch of Crizal Prevencia, the first lens that selectively filters
harmful rays from blue light. The Company will also deploy a large number of
mid-range products to take advantage of growth in this segment. Lastly, the
acquisition dynamic underway since the beginning of the year should
accelerate. For full-year 2013, revenue growth (like-for-like and bolt-on
acquisitions) should be close to 7%, with profitability confirmed at a high
Over the longer term, the growth drivers in the optics market remain powerful
and worldwide demand for improved visual health is expected to create many
opportunities. Essilor will continue to position itself in fast-growing
segments, as evidenced by the recently signed agreement to acquire Transitions
Optical, the world leader in photochromic lenses.
A meeting with analysts will be held in Paris today, August 29, at 10:00 a.m.
The meeting will be available live and recorded for later listening at:
The presentation will be webcast at:
The interim financial report is available at www.essilor.com by clicking on:
Third-quarter 2013 revenue: October 24, 2013
The world’s leading ophthalmic optics company, Essilor designs, manufactures
and markets a wide range of lenses to improve and protect eyesight. Its
corporate mission is to enable everyone around the world to access lenses that
meet his or her unique vision requirements. To support this mission, the
Company allocates more than €150 million to research and innovation every
year, in a commitment to continuously bring new, more effective products to
market. Essilor’s flagship brands are Varilux^®, Crizal^®, Definity^®,
Xperio^®, Optifog^TM and Foster Grant^®. It also develops and markets
equipment, instruments and services for eyecare professionals.
Essilor reported consolidated revenue of approximately €5 billion in 2012 and
employs around 50,700 people. It operates in some 100 countries with 22
plants, more than 400 prescription laboratories and edging facilities, as well
as several research and development centers around the world.
For more information, please visit www.essilor.com.
The Essilor share trades on the NYSE Euronext Paris market and is included in
the Euro Stoxx 50 and CAC 40 indices.
Codes and symbols: ISIN: FR0000121667; Reuters: ESSI.PA; Bloomberg: EI:FP.
Investor Relations and Financial Communication
Véronique Gillet – Sébastien Leroy – Ariel Bauer, +33 (0)1 49 77 42 16
Corporate Communication and Press
Maïlis Thiercelin, +33 (0)1 49 77 45 02
Press spacebar to pause and continue. Press esc to stop.