Luxottica: 2008 turnover exceeds Euro 5 billion
During the meeting held last Thursday, the Board of Directors of Luxottica Group S.p.A. (MTA: LUX; NYSE: LUX) approved the group consolidated financial statements prepared under US GAAP and IFRS. The main financial statements highlights were already disclosed to the market on 5 February.
“In 2008, a particularly challenging year, we recorded an all-time high turnover of over Euro 5 billion, profit for the year of approximately Euro 400 million and a free cash flow of Euro 300 million. We successfully completed the first year of collaboration with Oakley and laid the foundations for a further, long-term growth of Luxottica, despite the tough scenario”, said Andrea Guerra, Luxottica Group Managing Director.
For Luxottica, 2008 was marked by three factors: the first year of integration with Oakley; the depreciation of the US dollar and other currencies used by the Group against the Euro and the significant slow-down, first in the US, then in the European market.
Against this backdrop, Luxottica reacted with the flexibility and efficiency characterising its integrated business model which enabled it to maintain a high free cash flow (Euro 302 million in 2008). In particular, Luxottica benefited from the effects of the merger with Oakley, continuous investments (approximately Euro 300 million) and a series of measures aimed at increasing turnover and generating efficiencies, which will be fruitful for the Group in the next few quarters. Moreover, thanks to such measures, Luxottica will also further strengthen its equity structure and optimise costs to seize new opportunities.
“We have already adopted a series of measures which will enable us to rapidly and flexibly adapt to the new scenario as well as boost sales and streamline the cost structure of all divisions and geographic regions. We are working to optimise our working capital and balance sheet to continue to achieve excellent cash flows, in spite of the current situation, and seize any opportunity that may arise. We are also rapidly adapting our production, distribution and sales capacity to the new market needs”, continued Guerra.
