Safilo: margins shrink in 2015
The year 2015 finished in mixed fashion for Safilo, whose sales have grown while its margins have shrunk significantly. The Italian group, controlled by Dutch investment fund Hal, recorded a revenue of €1.27 billion (+8.5% compared to 2014). On the occasion of the annual results' publication, the eyewear manufacturer stated that sales at constant exchange rates were in line with 2014.
However, profitability results were negative. In 2015 Safilo fell into the red, suffering a loss of €52.7 million, compared to a net income of €39 million in 2014.
The loss is explained by a series of exceptional factors adding up to €60.5 million. They included the devaluation linked to the launch of the group's operations in Asia, and the estimate for a sanction connected with a dispute with the French anti-trust authority, the group has stated.
Given this context, Safilo has published adjusted results which exclude these exceptional factors: its adjusted net income was €6.9 million, compared to €44.5 million in 2014 (-84.4%), and adjusted EBITDA was €102.4 million, compared to €118.4 million one year earlier (-13.5%).
It is worth noting that in 2015 the eyewear manufacturer has halved its liabilities, down from €163.3 million in 2014 to €89.9 last year. "2016 will be another key transition year for the group, as it will include the final period of the Gucci licence," underlined CEO Luisa Delgado.
In 2014, Safilo had to swallow the pill of Kering's decision to internalise the design and distribution of its brands' eyeglass frames, Gucci included, two years ahead of the licence contract's expiry. In the meantime Safilo has won prestigious new licences with Elie Saab, Havaianas and especially Givenchy and Swatch, with whom the partnership will begin this year.
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