Emerging markets continue to perform well at Luxottica
27 Jan '10
5 min read
“Luxottica believes that the overall scenario seems to have stabilized by now. Measures taken during the course of last year will take full effect in 2010, a year in which the Group expects to see a return to growth, a key element of its DNA. With respect to this, the first signs in the new year were encouraging.”
Thanks to measures taken to face a year as challenging as 2009, consolidated sales for the full year remained over the Euro 5 billion mark, at Euro 5,086.7 million when adjusted for the additional week of sales(3), down by 1.3% at current exchange rates and down by 3.8% at constant exchange rates. For the previous year, the Group had posted the best results in its history.
On the basis of current market conditions, the Company expects that FY 2010 will mark a return to “normal” for Luxottica. This would result in growth in sales, a solid and more than proportional increase in margins and an appreciable reduction in the ratio of net debt to EBITDA.
In 2010, the Company expects positive performance in Europe, the US and especially in emerging markets. Initiatives already underway are expected to bring about a strong increase in margins in both Divisions, but especially in wholesale. There will continue to be a sharp focus on new business development opportunities and investments in systems and infrastructure with the potential to generate further benefits.
Thanks to tight control of working capital and despite a total cash dividend pay-out in the fourth quarter of Euro 100.8 million, the Group enjoyed strong cash flow generation, which remained at levels of excellence. As a result, estimated consolidated net debt(5) at December 31, 2009 is expected to reflect a further improvement to approximately Euro 2,350 million, compared with consolidated net debt of Euro 2,414 million at September 30, 2009 and Euro 2,950 million at December 31, 2008.
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