Safilo Group announces its results for the first quarter of 2007

The Board of Directors of Safilo Group Spa today reviewed and approved the results relating to the first quarter of 2007 and which highlight once again strong growth in turnover and a corresponding growth in net profit.

Consolidated turnover registered an increase of 16.8% at constant exchange rates, and reached a record value of 341.4 million Euro during the quarter. The growth in turnover was achieved in all worldwide markets with especially impressive results in Europe (+35%).
The quarterly performance confirms the recovery in the sale of prescription frames and underlines a balanced growth between house brands and licensed brands.
The Group's operating result has seen an improvement despite the negative impact deriving from the weakness of the US dollar, and has reached an EBITDA of 58.5 million Euro against the 52.9 million Euro of the first quarter of 2006 (+10.6%).
The increase in operating profit, not only boosted by the positive sales results, is due also to the improvements seen in the industrial area and the cost containment policies for general costs.
The management of financial costs and interest has succeeded in containing financial expenses despite the slight increase in net debt due to a seasonal fluctuation of working capital which was more marked than usual.
The overall result of these improvements is a 22.4% increase in net profit, which reached 20.8 million Euro in the first quarter, against the 17.0 million Euro of the same period of the previous year.
On the basis of the first quarter results the necessary conditions exist to achieve the estimated growth as foreseen in the budget, both with regards to turnover with an increase of approximately 7% compared to last year, and with regards to EBITDA which should reach 190 million Euro at the end of 2007, an increase of 17% compared to 2006.Vittorio Tabacchi, Chairman of Safilo Group, while commenting on the results achieved, stated: '2007 has begun with record sales in the first quarter. The new licences and the increased efficiency achieved in the production process are producing the positive results we expected.This is further confirmation of the choices made by Safilo and its course for the future: not onlyhave we achieved technological excellence thanks to significant investments in research and development and created a valuable capillary distribution network which we will continue to expand, but we have also a superlative brand portfolio which confirms us as worldwide leader in the high-end and luxury eyewear sector. With these solid foundations we are confident that the company will achieve the important goals it has set itself.'