First-half 2020 results
Resilient performance, strong adaptability, structural vision needs
- Positive adjusted1 operating profit despite revenue down 29%
- Cash and short-term investments close to Euro 8 billion due to prudent management and positive Free Cash Flow2 in the second quarter
- Revenue trough in April, followed by marked sequential recovery in May and June in all key operating segments and all geographical areas
- Fast recovery in Lenses underpinned by prescription and new products
- Prompt restart of Retail in both optical and sun, particularly in North America
- Acceleration in digital, with online up 43% in the first half and up 68% in the second quarter
- Euro 130 million fund to support employees and their families
Charenton-le-Pont, France (July 31, 2020 – 7:00am) - The Board of Directors of EssilorLuxottica met on July 30, 2020 to approve the condensed consolidated interim financial statements for the six months ended June 30, 2020. The Statutory Auditors have performed a limited review of these financial statements. Their review report is in the process of being issued.
“Our first priority in recent months has been to protect our people and our communities, and to support our partners and customers during the COVID-19 pandemic. While living up to our responsibility as an industry leader, we also proved the strength of our business model by managing to break even in the first half with positive operating income1 and critical cash flow generation. We want to thank our 150,000 employees worldwide, our management, the Board of Directors and all our shareholders for the support and sacrifices they made along the way. Everyone did their part and contributed to these achievements.
We will continue to play an important role in the industry’s recovery by making our capabilities, technologies and resources available to everyone in the market without distinction, in line with our mission. Our ability to strengthen our relationships with customers in recent months, standing by their side in the toughest of times, will make us stronger to face any future change and opportunity in the industry.
Given the resilience of vision needs, we are cautiously optimistic about the remainder of the year and will be watching the evolution of the virus closely, ready to adapt wherever needed. At the same time, we are increasing the pace of our integration, accelerating our digitalisation and launching major product innovations that will drive the industry forward”, commented Francesco Milleri, CEO and Deputy Chairman of Luxottica, and Paul du Saillant, CEO of Essilor.
1 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.
2 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.