Essilor: 2003 consolidate sales
Essilor today announced that its consolidated sales for 2003 declined by a reported 1% to € 2,116 million in 2003 (2,138 million in 2002), reflecting the highly negative currency effect (-8.8%) caused by the appreciation of the euro against the Brazilian real, the Japanese yen and, especially, the US dollar (nearly 17%).
Like-for-like growth was in line with historic trends, with sales gaining 4.3% on a strong (6.5%) second-half performance, as demand improved in the third quarter and accelerated in the fourth, especially in Germany and the United States. On a regional basis, sales rose faster in the second half in most geographic markets.
In Europe (up 7.3%) the growth was led by exceptionally strong sales in Germany in the fourth quarter, as people rushed to purchase eyeglasses before January 1, 2004, when the national healthcare system stopped reimbursing ophthalmic lenses. Excluding Germany, sales gained an organic 5.6% in Europe, with France, Spain, the United Kingdom, Ireland and the Nordic countries all turning in a strong performance.
In North America (up 1.0%), after declining in the first half due to lower traffic at optical retailers and the difficult political environment, the US market recovered in the second six months, enabling Essilor to make up lost ground with a 3.5% increase in second-half sales.
In Asia-Pacific (up 1.4%) the growth was mainly reduced by the unfavourable accounting impact of consolidating sales made by local plants.
South America (up 17%) reported the year's strongest growth, lifted by sustained expansion in Brazil and an upsurge in business in Argentina.
Sales momentum also reflected the growing contribution from the 14 new companies consolidated during the year. Carried out on every continent, these acquisitions added a total of €74.5 million in sales or 3.5% of the year's growth.
Recently, two new prescription laboratories were acquired: Metro Optical Ltd (C$2 million in sales) based in Edmonton, Alberta, and Dunlaw Optical Laboratories, Inc. ($2 million in sales) based in Lawton, Oklahoma.
Audited 2003 results will be released on March 4. In light of the strong second half and the exceptional situation in Germany, consolidated operating margin should be near to 17%.
