EssilorLuxottica eyewear manufacturing
A positive outlook was reported in full-year financial results published by Kering Eyewear, De Rigo, Inspecs and EssilorLuxottica, despite global uncertainties.
Increases in either revenue, sales or earnings before interest, taxes, depreciation and amortisation (Ebitda) were noted by all of these titans of the eyewear industry.
Kering
Kering Eyewear’s revenue hit a new record of €1.5bn in 2023, which was up 10% on a comparable basis, because of the consolidation of Maui Jim and development of its brand portfolio. The luxury eyewear company said sales were up 6% on a comparable basis in the fourth quarter of 2023 and recurring operating income rose to €276m.
François-Henri Pinault, chair and CEO at Kering, said: ‘In a trying year for the group, we strengthened our organisation and took significant steps to further enhance the visibility and exclusivity of our houses. We are focused on revitalising Gucci, leveraging the unique blend of craftsmanship, Italian heritage, and modernity that characterises this iconic house.
‘In a market environment that remains uncertain in early 2024, our continuing investments in our houses will put pressure on our results in the short term. Thanks to the experience gained across the group through a decade of outstanding expansion, we are confident in achieving our long-term ambitions.’
De Rigo
De Rigo said 2023 closed on a positive note with a consolidated turnover of €506m, an 11.8% increase compared to the €452.7m generated in 2022. Sales generated by the Italian company’s wholesale division grew 16.8% to €279.1m from €239m in 2022 with markets in Italy, Turkey, Brazil, China and Spain contributing most to growth.
The increase came from its high-end brand segment, plus the 40th anniversary of its Police lifestyle brand, while the contribution of the acquired eyewear division from Rodenstock was limited because it was only integrated in the second half of the year.
Turnover at De Rigo’s retail division was up 6.5% to €242.6m compared to €227.7m in 2022, which it noted was completely organic because there were no significant store openings in 2023.
Ennio De Rigo, president of the De Rigo Group, said: ‘The pathway taken by the group after the difficult pandemic period makes us very satisfied and encourages us to keep on doing better.
‘The investments made over the past two years have shown their effective contribution to sales. Increasing conflicts in different areas of the globe have made it more complicated to predict and plan international actions, keeping the level of uncertainty high. The continued diversification we seek by expanding globally is allowing us to mitigate the negative impacts of these events.’
Inspecs
However, Inspecs said growth was below expectations as it maintained its focus on margin improvement during 2023 in its trading update for the year. It expected to report a 16.1% increase in unaudited, adjusted underlying Ebitda. However, the eyewear company said financial performance was below expectations due to softer trading in December.
Additionally, group revenue was below its expectations and slightly down on the previous year at £200.3m in 2023, compared to £201.3m in 2022. Inspecs added that its outlook for 2024 was positive with new accounts and distribution in place, plus the launch of a licensed eyewear brand in spring.
Richard Peck, CEO at Inspecs, said: ‘While our revenue performance was affected by a soft market in December, I am encouraged that our focus on operational efficiencies in 2024 delivered an improvement in our margins.
‘The group has also reduced its net debt while investing in significant additional manufacturing capacity for the future, with our new Vietnam facility coming onstream in H1 2024.
‘Having further strengthened the balance sheet and extended the maturity of our financing facilities, I look forward to driving sales in 2024, while continuing our programme of improving operational efficiency and continuing to develop group synergies to enhance our performance.’
EssilorLuxottica
EssilorLuxottica said 2023 was another record for the company as group revenue increased over 7% for the third consecutive year at constant exchange rates.
Francesco Milleri, chair and CEO, and Paul du Saillant, deputy CEO at EssilorLuxottica, said: ‘We’re proud to share these strong results with our stakeholders, delivering another year above 7% revenue growth, including an acceleration in Q4, with every one of our regions doing its part.
Our profitability remained strong, with a record adjusted group net profit close to €3bn and free cash flow at €2.4bn.’
In its full year results, revenue reached €25.3m, gross profit was €16m, adjusted operating margin was at 16.9% at constant exchange rates.
The company said major investments and growing product categories, such as Stellest in myopia and Ray-Ban Meta in wearables, as well as adding brands like Moncler and Jimmy Choo to its portfolio would support growth in the future.