The Board of Directors of Safilo Group S p A approves the financial results for 2010

16/03/2011
Key highlights:

• Net Sales at Euro 261.8 million in Q4 2010, +10.7% compared to Q4 2009

• Net Sales at Euro 1,079.9 million in full year 2010, +6.8% compared to 2009

• EBITDA at Euro 25.4 million in Q4 2010 (9.7% margin), from Euro 10.7 million in Q4 2009 (4.5% margin)

• EBITDA at Euro 107.8 million in full year 2010 (10.0% margin), +85.1% compared to 2009

• Net Result at Euro 4.4 million in Q4 2010 (1.7% margin) and return to break-even in full year 2010

• Net Debt at Euro 256.2 million, down from Euro 588.0 million at the end of 2009. Net Debt/EBITDA to 2.4x

Padua, March 16, 2011 – The Board of Directors of SAFILO GROUP S.p.A. today approved the consolidated financial statements for 2010¹. The Board of Directors also reviewed the financial statements at December 31, 2010¹, which will be submitted for approval to the Shareholders’ Meeting called for April 27, 2011 (single call).

In the fourth quarter of 2010, Safilo consolidated the improvement in results achieved in the first nine months of the year, registering good progresses in terms of revenues, profitability and net financial position:

• Revenues increased by 10.7% at current exchange rates. At constant perimeter2 and exchange rates, the growth of sales was equal to 8.0%, driven by the good performance of the American and Asian markets where consumers demand for premium eyewear collections was more solid, in particular in sunglasses.
In Europe, the Group posted a more moderate improvement of sales, with France, Spain and key accounts achieving the best results.

• Operating performance grew in the fourth quarter thanks to a recovery of gross margin and a lighter incidence of SG&A expenses. This result, supported by the reduction of financial expenses, allowed the Group to register a positive net result of Euro 4.4 million (1.7% margin).

In full year 2010, the Group’s revenues were up 6.8% over 2009 (+6.0% at constant perimeter2 and exchange rates), EBITDA grew by 85.1% to Euro 107.8 million and the net result was at break-even, positive for Euro 0.7 million.

The improved operating and financial performance, coupled with more focused investments in the core business and the careful control of working capital during the year, allowed the Group to close 2010 with a free cash flow of Euro 74.3 million and to reduce the net debt to 2.4x EBITDA.

Roberto Vedovotto, Chief Executive Officer of the Safilo Group, commented:

“2010 will be remembered as one of the most meaningful years in Safilo’s history and has been characterized by some significant key milestones.

Our new journey started in March with the successful completion of the recapitalization plan which allowed us to rebalance the Group’s capital structure and represented the starting point of a process of ongoing improvements of our economic and financial results, strengthening of the Group’s management team, and renewal of the partnerships with some of the most prestigious fashion and luxury brands.

After two challenging years, Safilo has begun to grow again, leveraging on its critical success factors, in the context of a general improvement of the business environment in the more mature markets and of the strong demand for premium eyewear products in the so-called emerging countries.

Throughout the year, in each of the four quarters we registered top-line growth, significant recovery in profitability and cash flow generation that allowed us to progressively reduce our net debt.

In particular, in the fourth quarter we confirmed the progress registered in the first nine months of the year, and our net financial position was at the lowest level in almost ten years.

Today, we are operating in a healthier economic environment and despite the uncertainties which still persist in selected areas, there are potential business opportunities which we could capitalize on with our enhanced and focused business model.”








Last update: 16/03/2011, 17:25