Safilo: the board approves the financial results for 2010
The Board of Directors of Safilo approved theconsolidated financial statements for 2010. The Board of Directors also reviewed the financial statements atDecember 31, 2010¹, which will be submitted for approval to the Shareholders’ Meeting called for April 27,2011 (single call).
In the fourth quarter of 2010, Safilo consolidated the improvement in results achieved in the first nine monthsof the year, registering good progresses in terms of revenues, profitability and net financial position:
• Revenues increased by 10.7% at current exchange rates. At constant perimeter2 and exchange rates,the growth of sales was equal to 8.0%, driven by the good performance of the American and Asianmarkets where consumers demand for premium eyewear collections was more solid, in particular insunglasses. In Europe, the Group posted a more moderate improvement of sales, with France, Spain and keyaccounts achieving the best results.
• Operating performance grew in the fourth quarter thanks to a recovery of gross margin and a lighterincidence of SG&A expenses. This result, supported by the reduction of financial expenses, allowedthe Group to register a positive net result of Euro 4.4 million (1.7% margin).
In full year 2010, the Group’s revenues were up 6.8% over 2009 (+6.0% at constant perimeter2 and exchangerates), EBITDA grew by 85.1% to Euro 107.8 million and the net result was at break-even, positive for Euro0.7 million.The improved operating and financial performance, coupled with more focused investments in the corebusiness and the careful control of working capital during the year, allowed the Group to close 2010 with afree cash flow of Euro 74.3 million and to reduce the net debt to 2.4x EBITDA.
Roberto Vedovotto, Chief Executive Officer of the Safilo Group, commented:“2010 will be remembered as one of the most meaningful years in Safilo’s history and has beencharacterized by some significant key milestones.Our new journey started in March with the successful completion of the recapitalization plan which allowedus to rebalance the Group’s capital structure and represented the starting point of a process of ongoingimprovements of our economic and financial results, strengthening of the Group’s management team, andrenewal of the partnerships with some of the most prestigious fashion and luxury brands.After two challenging years, Safilo has begun to grow again, leveraging on its critical success factors, in thecontext of a general improvement of the business environment in the more mature markets and of the strongdemand for premium eyewear products in the so-called emerging countries.Throughout the year, in each of the four quarters we registered top-line growth, significant recovery inprofitability and cash flow generation that allowed us to progressively reduce our net debt.In particular, in the fourth quarter we confirmed the progress registered in the first nine months of the year,and our net financial position was at the lowest level in almost ten years.Today, we are operating in a healthier economic environment and despite the uncertainties which still persistin selected areas, there are potential business opportunities which we could capitalize on with our enhancedand focused business model.”
