Tabacchi: we'll return to the Stock Exchange in 2006

The re-launch of Safilo, according to an article in Il Sole 24 Ore, will come about by cutting costs and, dollar permitting, by growth. Despite a difficult 2003, the company has been able to develop with revenues of over 900 million euros, even though the downturn in industrial margins was about 30%.

'Around 40% of our turnover is in dollars', said Safilo's president, Vittorio Tabacchi. 'The 19% downturn in the dollar in 2003 affected roughly 7% of Safilo's revenues. Despite everything, we are perhaps the only company in the sector whose turnover has increased.'

To recover the lost margins, Tabacchi shows a 'well-organized industrial plan which includes general restructuring: this year saw the start of the reduction in costs, which will lead to the closure of the facility in Austria, with over 200 employees, and a major use of outsourcing'.

Talking about indebtedness and the relevant recovery plan, Tabacchi explained: 'I have a debenture loan of 300 million with a long-term expiry date: 2013. I will repay the rest out of the company's results and probably with a return to the stock exchange, which, according to our plans, should come about in 2006'. He added: 'I would like to underscore that I took on this loan to acquire a part of Safilo and not other companies or planes. So, even if I don't manage to cover the debt through ordinary business, I could sell a part of the company. It isn't necessary to hold 100%'.

Questioned on the strategy by Luxottica and De Rigo of acquiring retail chains, Tabacchi repeated that he did not want to take the same road: 'In America there are 20 thousand retail stores and my main competitor (Luxottica, ed.) directly controls around 3 thousand of them. So, the remaining 17 thousand are available for Safilo. In short, it's more convenient to aim for wider distribution than for specific wholly-owned distribution'.

'There are certain brands', Tabacchi concluded, 'like Gucci, Polo Ralph Lauren, Armani and Dior, that an American store can't do without. So if we avoid covering all the American outlets, it is because of a selective distribution policy.'