Thanks to the progress of the cost reduction project and the completion of the capital increase, Safilo’s economic performance improves. In the fiscal year 2018 the adjusted EBITDA was equal to 47.5 million euros, with a growth of 15.5% compared to 2017 and the adjusted net result, negative by 26.7 million euros, was higher than the 43.2% compared to 2017.
The group’s net indebtedness also improved, amounting to 32.9 million euros, -75% compared to 2017 thanks to the proceeds from the capital increase, excluding 17.7 million euros paid last 2 January.
The eyewear’s big brand ended the fiscal year with net sales of 962.9 million euros, with a 4% drop at constant exchange rates and 7% at current exchange rates.
During the year, the performance at constant exchange rates of the wholesale business fell by 4.9%, motivated by a series of factors, such as the release of Celine, only partly offset by the launch of the new licensed brands Moschino, Love Moschino and Rag & Bone.
Overall the results of the main brands of the group were positive, driven in particular by the very positive season recorded by Polaroid in Spain and the good progress made by the Safilo brand in the eyewear eyewear sector.
In general, the licensed brands of the contemporary segment have reported overall positive performances, while sales of sunglasses in the luxury fashion segment have had a rather weak result.
In particular, in the fourth quarter of 2018 net sales totaled € 249.1 million, up 1.3% at constant exchange rates and 1.8% at current exchange rates compared to the same quarter in the 2017. At constant exchange rates, the performance of the wholesale business fell by 3.3%.
“2018 ended substantially in line with our expectations – commented Angelo Trocchia, a.d. of the Safilo group (in the photo)- with a decrease in sales to an average percentage and the first signs of improvement in terms of operating performance and net income “.
“The second half of 2018 – he specified – was a key moment, in which we began to implement the new 2020 plan and to secure our financial structure through a capital increase and new financing“.
In the fiscal year, stressed Trocchia, the group focused heavily on the creation of a new commercial organization in all key markets, «bringing back professionalism and leadership from the sector, with the aim of improving the effectiveness of our commercial presence on the market, putting customer service at the center of what we do ».
An intense year, therefore, he concluded, “in which we renewed our partnership with important brands such as Banana Republic, Fossil, Havaianas and Tommy Hilfiger, and we signed agreements first with Missoni and, at the beginning of 2019, with Levi’s“.
For 2019 the objective, it clarifies, “is to return to top line growth and above all to recover a sustainable level of profitability, which reflects the progress of our cost reduction projects“.