A positive wind for Safilo
Safilo closed the first 9 months of 2019 with the net sales of the Continuing Operations at Euro 708.7 million, up 5.2% at current exchange rates and 2.7% at constant exchange rates. The performance was positively influenced by a 3.2% growth of the European market, and by the recovery of the main emerging markets, particularly significant in Asia Pacific which ended up 22.5%. Turnover was down 2.0% at constant exchange rates in North America.
The wholesale business increased by 6.4% at current exchange rates and by 3.7% at constant exchange rates, with Europe up 5.6%.
In the 3rd quarter of 2019, the net sales of the Continuing Operations equaled Euro 212.8 million, up 2.2% at current exchange rates and substantially in line with the same period of last year at constant exchange rates (+0.1%).
The quarterly performance of the top line was influenced by the expected decrease, starting from the second part of the year, of the business relating to the production agreement with Kering, while the wholesale1 revenues recorded a growth of 5.2% at current exchange rates and of 2.8% at constant exchange rates. The latter result was driven by a double-digit revenue growth in Europe, supported by a double-digit growth also of the main distribution channels in Asia and core markets in Latin America.
The North American business, on the other hand, recorded a 7.7% drop at constant exchange rates, mainly reflecting the consolidation of all the North American logistic activities in the new Denver warehouse, a start-up temporarily affecting the performance of Smith sport products.
The quarterly performance also confirmed the good growth of the Carrera and Polaroid brands and the positive trends of the main licensed brands.
Angelo Trocchia, Safilo Chief Executive Officer, commented the results: “In the third quarter of the year, we continued the improvement of our results, working with determination on those priorities aimed at enhancing our Group’s assets, in particular strengthening our commercial capabilities and enhancing our digital agenda, two areas in which our strategy is focused on the customer and on a continuous and ever closer connection with the final consumer. Meanwhile, we progressed also with actions to improve the efficiency of our production processes and overhead cost structures.
The quarter brought significant results, we renewed two strategic partnerships relating to the Boss and Hugo licenses and the supply agreement with Kering Eyewear, and we prepared for the launch of our new licenses David Beckham, Levi’s and Missoni.
While we move into a complex business and industry context in which we plan for the medium and long term to build top and bottom line, the quarter is indeed a further confirmation of the quality of the work we undertook, both in terms of top line, with our core wholesale1 business improving by 2.8% at constant exchange rates, as well on the economic front, achieving an adjusted EBITDA of Euro 9.7 million. We look at the current year as a transition year for building the foundation to face the challenges and opportunities that lie ahead”.