EssilorLuxottica’s second quarter and first half 2021 results
Revenue acceleration, margin expansion and record cash flow
Outlook 2021 improved
Second quarter:
- Revenue +9.2% versus 2019 at constant exchange rates1
- North America best performing region, EMEA and Latin America positive
- Professional Solutions and Direct to Consumer both growing and accelerating
- Optical and sun both growing, with sun catching up in pace
- E-commerce +66% versus 2019 at constant exchange rates1, reaching 9% of total revenue
First half:
- Operating profit +35% versus 2019 at constant exchange rates1
- Adjusted2 operating profit margin at 18.5%, up 130 basis points versus 2019
- Free cash flow4 record generation at Euro 1.2 billion
Revenue acceleration, margin expansion and record cash flow
Outlook 2021 improved
Second quarter:
- Revenue +9.2% versus 2019 at constant exchange rates1
- North America best performing region, EMEA and Latin America positive
- Professional Solutions and Direct to Consumer both growing and accelerating
- Optical and sun both growing, with sun catching up in pace
- E-commerce +66% versus 2019 at constant exchange rates1, reaching 9% of total revenue
First half:
- Operating profit +35% versus 2019 at constant exchange rates1
- Adjusted2 operating profit margin at 18.5%, up 130 basis points versus 2019
- Free cash flow4 record generation at Euro 1.2 billion
Charenton-le-Pont, France (30 July 2021, 7:00 am) – The Board of Directors of EssilorLuxottica met on 29 July 2021 to approve the condensed consolidated interim financial statements for the six months ended 30 June 2021. The Statutory Auditors have performed a limited review of these financial statements. Their report is in the process of being issued.
“We delivered another strong set of results in the first half, despite the ongoing challenges of the pandemic. Our continued focus on premium products and brands, a powerful supply chain and a global community of talented and engaged employees helped us get there.
In the second quarter, we wrote some important pages in EssilorLuxottica’s history by clarifying our governance and building one unified company, while continuing to expand our retail footprint in Europe by completing the acquisition of GrandVision.
Looking to the future, we’re proud to share our new company-wide Sustainability approach, “Eyes on the Planet”, built around key pillars including carbon, circularity, world sight, inclusion and ethics. As a sign of our long-term commitment in this area, today we announce our target to achieve carbon neutrality across our direct operations by 2025, starting in Europe by 2023. Doing good for our customers, consumers and communities, and doing good for our planet gives us even greater confidence about what lies ahead”, said Francesco Milleri, CEO of EssilorLuxottica and Paul du Saillant, Deputy CEO of EssilorLuxottica.
Notes
1 Constant exchange rates: figures at constant exchange rates have been calculated using the average exchange rates in effect for the corresponding period in the relevant comparative year (2020 or 2019).
2 Adjusted measures or figures: adjusted from the expenses or income related to the combination between Essilor and Luxottica and other transactions that are unusual, infrequent or unrelated to the normal course of business as the impact of these events might affect the understanding of the Group’s performance.
3 Comparable store sales: reflect, for comparison purposes, the change in sales from one period to another by taking into account in the more recent period only those stores already open during the comparable prior period. For each geographic area, the calculation applies the average exchange rate of the prior period to both periods.
4 Free cash flow: Net cash flow provided by operating activities less the sum of Purchase of property, plant and equipment and intangible assets and Cash payments for the principal portion of lease liabilities according to the IFRS consolidated statement of cash flow.
5 Net debt: sum of Current and Non-current borrowings, Current and Non-current lease liabilities, minus Short-term investments, cash and cash equivalents and the Interest rate swap measured at fair value as disclosed in the IFRS consolidated financial statements.
