FINANCE

Safilo: The results for the first half of the year have been approved

Roberto Vedovotto: "The results we have achieved are in line with our expectations and consistent with our projects"

In early August, the Board of Directors of Safilo Group S.p.A. has reviewed and approved the results of the second quarter and the first half of 2012. In the first six months of the year, Safilo has recorded net sales equal to 613.3 million euro compared to 603.3 million euro recorded in the same period in 2011. The period performance was boosted by the consolidation, starting from the second quarter of 2012, of the new acquisition of the Polaroid Eyewear business, leader in eyewear and polarised lens technology and a key element within Safilo's development strategy in the 'specialist' and 'value for money' segments.
The six months were also affected by the appreciation of the dollar and the phase-out effect of the Armani brands. In terms of profit, the six months recorded an operating income of 51.2 million euro and a net profit of 21.5 million euro. Thanks to the efficient working capital management, the financial leverage has remained near the level reached at the end of 2011.

 

In the second quarter of 2012, the Group's net sales were up by 7.3%.
The sales performance, not including the Polaroid acquisition, the effect of exchange rate variations and the impact of the Armani phase-out together with that of other unrenewed brands, such as Balenciaga, Nine West and Valentino, has marked a 6.1% growth.

 

Roberto Vedovotto, Chief Executive Officer of the Safilo Group, has commented: "The second quarter of 2012 has represented yet another step forward for Safilo. The results we have achieved are in line with our expectations and consistent with our projects. The operating margin has improved compared to that recorded in the first quarter of the year and net debt has hit an all-time low compared to the past 10 years, albeit in the presence of the Polaroid Eyewear acquisition. With regards to our business strategy, we have reached an agreement with the social partners, which will enable the Group to operate in a competitive market through an efficient, streamlined and flexible model. In the period, we have confirmed our consolidation and brand portfolio enhancement strategy with the acquisition of Polaroid Eyewear and the long-term renewal of the partnership with the Hugo Boss Group, one of the most important and most prestigious licence agreements for Safilo.
These initiatives are further evidence of our commitment towards a selective strategy and portfolio management, based on the steps already taken in this direction over the years."