Safilo Group: third quarter results
Safilo Group today announces the results for the third quarter of 2004 which once again confirm the strong growth trend both in terms of turnover and profit in spite of the continued weakness of the dollar.
Consolidated turnover has reached € 713 million, showing an increase of 10% with fixed exchange rates and 6% with current exchange rates compared to the first nine months of 2003. Growth in the third quarter of 2004 compared to the same period of the previous year is 1.5% (+5% with the same exchange rates).
The Group's profitability, which is improving constantly, has reached 15.5% of turnover (14.7% in the first nine months of 2003), with an Ebitda value of € 109.7 million. The third quarter, which is the weakest of the year due to the effects of the seasonality of sales, has however guaranteed operating results equal to € 28.1 million before amortization, a 12% improvement compared to the same period of the previous year.
Net debt at the end of September is confirmed around € 781 million, an improvement both compared to the start of the year (- € 15 million) and also compared to the same period of 2003 (- € 16 million).
The Group's sales results confirm the growth recorded from the beginning of the year, although they have partially been penalised by the prolonged weakness of the American currency and by the European economic environment, which is unfavourable. Despite these situations which limit increase in turnover, the aims targeted by the Group, mostly focused on improved profitability, have been reached in the expected timescale and inspire confidence that further rises in profitability will be reached in the remaining part of the year.
The Group's financial position is constantly improving compared to the start of the year and a further reduction in net debt is expected by year end.
Vittorio Tabacchi, Chairman of the Safilo Group, stated: 'I am satisfied with the positive trend shown by the main economic indicators in all three quarters of the current year which confirm that the company is achieving the important objectives fixed at the start of the year. The success of the new 2005 Spring/ Summer Collections, presented at Paris fair at the end of October, leads us to expect a further increase in sales, although there may be different levels of rises geographically: we continue to record excellent growth in the Asiatic market, mainly due to the offer of collections aimed specifically at Oriental style and fitting. The excellent profit performance also underlines our leadership in the luxury eyewear sector; this position will be further reinforced with the presentation of the new Marc Jacobs collection at the start of next year'.
