Safilo Group 2005 results
The Board of Directors of Safilo Group has reviewed and approved the draft financial statements for the year 2005 that will be presented to the Shareholders Meeting on 27th April.
Consolidated turnover exceeded for the first time one billion Euro, reaching 1,025.3 million Euro (+8.5% compared to 2004), thanks to the growth recorded in all major markets in which the Group operates, and particularly in Asia (+20%).
Running costs, both operational and financial, were significantly impacted by non-recurring expenses related to the IPO process which was concluded with success in December 2005. Therefore, in order to highlight these costs and to improve the comparison of the figures with last year, the principal economic indicators are shown gross and net of costs related to the IPO.
EBITDA before non-recurring expenses reached 163.0 million Euro, an improvement (+11%) compared to the previous year. The percentage on turnover has therefore increased from 15.5% in 2004 to 15.9% in 2005. This improvement is a consequence both of the market's clear appreciation of the Group's most recent collections and cost cutting policies which, for some time now, are moving towards a clear improvement of economic performance.
EBITDA after non-recurring expenses reached 153.0 million Euro, an increase of 4.3% compared to 2004. The operating result before non-recurring expenses reached 127.9 million Euro (after non-recurring expenses 117.9 million Euro), an improvement of 14.9% compared to 2004.
Financial costs were heavily penalised by exchange rate differences (15.0 million Euro) and by exceptional costs linked to the IPO which led to increased costs and, following repayment of existing loans, acceleration of amortisation costs linked to debt restructuring (for a total of 19.5 million Euro). Net profit before non-recurring expenses is equal to 22.9 million Euro (an improvement of 21.1% compared to the 18.9 million Euro registered in 2004). Net profit after non-recurring expenses is equal to 3.1 million Euro.
Net debt was reduced significantly (-40.7% from 807,2 million Euro to 479,0 million Euro) and this will finally allow the Group to operate in the next few years with a balanced capital structure.
Vittorio Tabacchi, Chairman of Safilo Group, commenting on the results achieved, declared: '2005 was a historic year for our Group. The results achieved and the listing on the Stock Exchange have led to the accomplishment of an organic growth project begun 4 years ago and aimed at strengthening Safilo's shareholding and financial structure. The achievement of these targets allows us to face future challenges with the commitment and the strength that derive from our competitive advantages: product development, selective distribution and customer care'.
