The Board of Directors of Safilo Group S.p.a. approves the results of the first half of 2011

02/08/2011
Key highlights (in millions of euro):

Net Sales:
 • 302.6 in Q2 2011, +2.8% (+10.5% constant perimeter and exchange rates)
• 603.3 in H1 2011, +4.0% (+7.8% constant perimeter and exchange rates)

EBITDA:
• 39.5 in Q2 2011 (13.1% margin), +30.9%
• 80.2 in H1 2011 (13.3% margin), +23.8%

EBIT:
• 30.5 in Q2 2011 (10.1% margin), +48.3%
• 61.9 in H1 2011 (10.3% margin), +38.5%

Net Profit:
• 12.9 in Q2 2011 (4.3% margin), compared to the Net loss of 5.0 in 2Q 2010
• 31.3 in H1 2011 (5.2% margin), compared to the Net loss of 3.3 in 1H 2010

Net Debt:
• 240.3 at the end of June 2011, from 268.2 at the end of March 2011 and
269.4 at the end of June 2010
• Net Debt/EBITDA at 1.95x from previous 2.4x

Padua, August 2, 2011 – The Board of Directors of SAFILO GROUP S.p.A. today reviewed and approved the results of the second quarter and first half of 2011.

In the second quarter of 2011, the Group reported an acceleration in the underlying growth trends, delivering a double-digit organic sales increase and solid improvement of margins.

Specifically, in the period:

• Revenues grew by 10.5% at constant perimeter1 and exchange rates, with the quarterly trends driven by the upbeat growth of the main fast-growing Asian and Latin American countries, the sound trading conditions of the US market and better performance of Europe;

• EBITDA and EBIT rose by 30.9% and 48.3% respectively, benefitting of the higher gross margin and the continuing deleverage of SG&A expenses both in the core wholesale business as well as at retail stores level. Below the operating line, lower financial expenses and tax rate also contributed to the consistent improvement of the Group’s net result;

• Net Debt declined both compared to the end of the previous quarter and the end of June 2010 thanks to the improved profitability of the period and the tight control on working capital management.

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

“We are pleased with the additional growth delivered by our business during the second quarter of this year, especially as the positive performance of the top line came with an even more significant improvement of the Group’s profitability.

Expansion in high-growth regions further accelerated in the period, confirming both the quality of our products and of our commercial propositions, which are today further strengthened by the very dynamic work of the Group on all its strategic top licensed brands as well as its house brand, Carrera.
In our core regions, we were glad with the resilient performance of the US market and the momentum gained by our strategic European countries.

Margins were on a rise at all levels, significantly outpacing top line growth, thanks to the good quality of sales as well as the leaner operating and financial costs structure.

Quarterly results allowed the Group to close the first half of the year with a new record financial leverage of net debt to EBITDA below 2.0x.

In the period, all business areas developed according to our plans. We continued to work for the reduction of the Group’s net interest expenses through the early redemption of Euro 60 million of Safilo Capital International Senior Notes 9 5/8% 5/2013.

We are well aware that the economic and business environment in which we operate remains dotted by numerous uncertainties and we must maintain a strong focus on the sustainable improvement of the Group’s business and financial indicators.”

For the press release please see the attached file
Last update: 02/08/2011, 17:54