Like-for-like growth accelerates to
4.8%
- Robust growth in the United States and
Europe
- Continued momentum in fast-growing
countries
- Strong gains in the Sunglasses &
Readers division, up 9.9%
- Annual targets confirmed
Regulatory News:
Essilor International (Paris:EI), the world leader in ophthalmic
optics, today announced that consolidated revenue rose by 14.5%
year-on-year to €1,620 million in the third quarter of
2015.
Third-Quarter Consolidated Revenue by
Operating Segment and by Region
€ millions
Q3 2015 Q3
2014
Change (reported)
Change
(like-for-like)
Changes in the scope of
consolidation
Currency effect
Lenses & Optical Instruments 1,446
1,274 +13.4% +4.8%
+1.5% +8.0% North America
643 527 +22.2%
+4.4% +0.3% +17.5% Europe
431 409 +5.2%
+4.0% +0.6% +0.7% Asia/Pacific/Middle
East/Africa
270 234
+15.1% +5.9% +1.3%
+7.9% Latin America
102 104
-2.1% +7.4% +11.7%
-21.2%
Equipment 48
46 +4.9% -6.4%
-0.4% +11.7%
Sunglasses & Readers
126 95 +32.8%
+9.9% +5.6% +17.3%
TOTAL
1,620 1,415
+14.5% +4.8% +1.7%
+8.0%
"Around the world, our industry is benefiting from strong,
sustainable demand for vision care solutions," said Hubert
Sagnières, Chairman and Chief Executive Officer of Essilor. "In a
mixed economic environment, our third-quarter performance has
validated our investment strategy, designed to drive balanced
growth that is evenly spread among developed and fast-growing
economies. The acceleration in organic growth also reflects the
benefits of broadening our business portfolio, with the ramp-up of
sunwear and online sales. This across-the-board dynamic underpins
our confidence that we can meet our full-year targets in 2015 and
continue to move boldly forward in 2016."
Third-Quarter 2015 Revenue
On a like-for-like basis, revenue growth gained further momentum
over the period, rising 4.8% compared with 4.4% in the second
quarter and 4% in the first.
The improvement primarily reflected:
- Sustained robust growth in North
America and Europe, led by the stepped-up consumer marketing
campaigns.
- Faster growth in the Sunglasses &
Readers division, at 9.9%, the biggest gain since the division
was created in 2010.
Reported growth also included the 8.0% positive currency effect,
mainly from the rise in the US dollar against the euro, and a 1.7%
increase from changes in the scope of consolidation.
Third-Quarter Revenue by Region and by Division
Sales in North America continued to grow very rapidly in
a steadily expanding market, rising 4.4% like-for-like over the
quarter. Third-quarter sales in the United States benefited from
faster growth in business with the optical chains as well as
sustained expansion by the Varilux®, Crizal®, Transitions® and
Xperio® product lines, supported by the continued deployment of
marketing initiatives and media campaigns. In addition, the contact
lens distribution business enjoyed another quarter of robust
growth. The Frames Direct and EyeBuyDirect online retail operations
both delivered strong gains, while Coastal.com continued its
turnaround. Growth in Canada was lifted by i) marketing campaigns,
particularly the "perfect pair" offer, which is driving faster
sales of prescription sunglasses by independent eyecare
professionals, and ii) new products, such as the Eyezen™ lens
category designed for a connected life.
In generally expanding markets, the 4.0% like-for-like increase
in European sales was led by sustained business with key
accounts and the positive impact of consumer advertising campaigns.
This was the case in Germany, where sales rebounded, in Southern
European countries and in the United Kingdom, where the product mix
also had a favorable impact. The Eastern European countries enjoyed
the fastest growth, thanks to the effects of media campaigns. In
Russia, consumer marketing initiatives for the Crizal® brand have
helped to strengthen Essilor's positions in a challenging
environment. Sales in France were stable over the period.
Sales in the Asia/Pacific/Middle East/Africa region
climbed 5.9% like-for-like during the quarter, as an upturn in
export business and solid growth in domestic sales in the
fast-growing countries offset softer demand in the region's
developed economies. In India, Crizal®, Varilux®, Transitions® and
Kodak® lenses turned in a very strong performance, while
overall sales were buoyed by the continued shift from glass to
plastic lenses, as well as by media campaigns and the launch of the
EyezenTM lens category. Despite a challenging economic environment,
growth in China was impelled by the domestic success of Crizal®
antireflective lenses and Varilux® progressive lenses, along with a
rebound in export sales. Operations in South Korea also combined
domestic growth and strong export business. Sales in Southeast Asia
had another good quarter, led by the new EyezenTM lenses. Growth
remained strong as well in the Middle East and Africa. Australian
sales, particularly to independent eyecare professionals, suffered
as the economy cooled in the third quarter. Business was stable in
Japan.
The slowdown in growth in Latin America, to 7.4%
like-for-like overall, reflected a mixed situation, with the faster
momentum observed in Colombia, Mexico and other countries only
partly offsetting the impact of the Brazilian recession.
Performance in Brazil was still up but was dampened by the decline
in retail footfalls and adverse prior-year comparatives. Despite
this unfavorable environment, Essilor strengthened its positions
thanks to the solid sales of Crizal® and Kodak® lenses. All of the
other country organizations reported faster gains compared with the
first half. This was particularly the case in Colombia, the
region's second largest country market, where the Crizal® line,
previously available as single vision lenses, was extended to all
prescription lenses. Kodak® lenses also saw a sharp increase in
sales. Growth in Mexico returned to double digits, lifted by a more
favorable economic environment. Business in Chile was driven by a
new stage in the ramp-up of an integrated lens supply contract with
a leading regional optical chain. In Argentina, the sharp rebound
in lens sales volumes continued throughout the quarter. The group
has also strengthened its presence in the region by acquiring a
majority stake in Rozin, a US-based distributor of
ophthalmic lenses, sunglasses, frames, instruments and other
optical equipment that operates exclusively in Central America,
Venezuela and the Caribbean. It generates around $19 million in
annual revenue from sales to eyecare professionals and prescription
laboratories.
The Sunglasses & Readers division turned in an
excellent 9.9% like-for-like increase in sales. In North America,
FGX International's performance improved with the ramp-up of the
new reading glasses supply contract with a leading drugstore chain
and the gain of new shelf space with a large retail chain. This
dynamic will be sustained by the launch of new products, such as
the eReaders™ for digital screens, and by the opening of new retail
channels. The division's solid results were also driven by the
strong growth at Costa, which is still benefiting from the ramp-up
of its prescription sunwear business and accelerating online sales.
The Chinese brands (Bolon™, Molsion® and Prosun®) reported another
quarter of growth. Expansion also continued in the travel retail
channel, with the slotting of Bolon™ glasses with a major cruise
line in the Asia-Pacific region.
The Equipment division, which reported a 6.4%
like-for-like decline for the period, remains adversely impacted by
the recognition as intra-group revenue of sales to companies
acquired by the group, as well as by cyclically weak demand in Asia
and Latin America. Business in the developed economies is
continuing to trend upwards.
Nine-Month Consolidated Revenue up 8.4%
Excluding the Currency Effect
€ millions
2015
(9 months)
2014
(9 months)
Change (reported)
Change
(like-for-like)
Changes in the scope of
consolidation
Currency effect
Lenses & Optical
Instruments
4,400 3,693 +19.1%
+4.7% +4.0% +10.4% North
America
1,956 1,511
+29.4% +4.2% +4.7%
+20.5% Europe
1,334 1,235
+8.1% +3.8% +3.1%
+1.1%
Asia/Pacific/Middle East/Africa
806 667 +20.8%
+5.6% +2.2% +13.0% Latin
America
304 280
+8.6% +9.2% +8.7% -9.4%
Equipment 140 131
+6.8% -5.4% -1.0%
+13.1%
Sunglasses & Readers 488
371 +31.7% +4.5%
+6.6% +20.6%
TOTAL
5,028 4,195 +19.9%
+4.4% +4.1%
+11.4%
Outlook
Management has confirmed its full-year 2015 targets as
follows:
- Revenue growth of between 8% and 11%
excluding the currency effect and in excess of 4.5% on a
like-for-like basis.
- A contribution from operations1 equal
to at least 18.8% of revenue.
Both of these targets exclude the impact of any new strategic
acquisitions.
A conference call in English will be held today at 10:00 a.m. CEST.
Please dial-in at the following numbers: +33 (0)1 70 77 09 42 or
+44 20 3367 9461.
The call may also be heard later at:
http://event.onlineseminarsolutions.com/r.htm?e=1071386&s=1&k=E4D0CBE22DB2AC977861BF9F6DA18567
Investor calendar
The 2015 annual results will be released on February 19,
2016.
About Essilor
The world's leading ophthalmic optics company, Essilor designs,
manufactures and markets a wide range of lenses to improve and
protect eyesight. Its mission is to improve lives by improving
sight. To support this mission, Essilor allocates more than €180
million to research and innovation every year, in a commitment to
continuously bring new, more effective products to market. Its
flagship brands are Varilux®, Crizal®, Transitions®, Definity®,
Xperio®, Optifog®, Foster Grant®, BolonTM and Costa®. It also
develops and markets equipment, instruments and services for
eyecare professionals.
Essilor reported consolidated revenue of nearly €5.7 billion in
2014 and employs 58,000 people. It markets its products in more
than 100 countries and has 33 plants, 490 prescription laboratories
and edging facilities, as well as several research and development
centers around the world. For more information, please visit
www.essilor.com.
The Essilor share trades on the Euronext Paris market and is
included in the Euro Stoxx 50 and CAC 40 indices.
Codes and symbols: ISIN: FR0000121667; Reuters: ESSI.PA;
Bloomberg: EI:FP
Appendix: Consolidated Revenue by Quarter (€
millions)
€ millions
2015
2014 First Quarter
Lenses & Optical Instruments
1,454 1,160
650 467
441 400
- Asia/Pacific/Middle East/Africa
267 211
96 82
Equipment
42 39
Sunglasses &
Readers 163 124
TOTAL First Quarter 1,659
1,323 Second Quarter
Lenses & Optical
Instruments 1,501
1,259
663 518
462 426
- Asia/Pacific/Middle East/Africa
269 222
107 94
Equipment
49 46
Sunglasses &
Readers 199 152
TOTAL Second Quarter 1,749
1,457 Third Quarter
Lenses &
Optical Instruments 1,446
1,274
643 527
431 409
- Asia/Pacific/Middle East/Africa
270 234
102 104
Equipment
48 46
Sunglasses &
Readers 126 95
TOTAL Third Quarter 1,620
1,415 Fourth Quarter
Lenses & Optical
Instruments
1,277
527
418
- Asia/Pacific/Middle East/Africa
231
101
Equipment
66
Sunglasses & Readers
132
TOTAL Fourth Quarter
1,475
1. Contribution from operations corresponds to revenue less cost
of sales and operating expenses (research and development costs,
selling and distribution costs, other operating expenses).
View source
version on businesswire.com: http://www.businesswire.com/news/home/20151021006506/en/
EssilorInvestor Relations and Financial
CommunicationVéronique GilletSébastien LeroyAriel BauerTel.:
+33 (0)1 49 77 42 16orCorporate CommunicationLucia
DumasTel.: +33 (0)1 49 77 45 02orMedia RelationsMaïlis
ThiercelinTel.: +33 (0)1 49 77 45 02
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