The world’s leading optical company posted a strong performance in the first quarter of 2023, driven by developing countries, including China.
The lifting of health restrictions in China also boosted global eyeglasses and other contact lenses sales in the first quarter.
EssilorLuxottica, the world’s leading optical company, has just announced an increase in its first-quarter sales, driven by developing countries, including China.
Demand from the Middle Kingdom is “ever stronger,” and “this is an important element of our growth profile this year. We are happy to see that Chinese consumers appreciate our products and our service,” said Stefano Grassi, the group’s financial director.
Better than analysts’ consensus
Overall, the group is doing better than expected with a 9.7% increase in published data (8.6% at constant exchange rates) of its sales to 6.15 billion euros. The FactSet analysts’ consensus was expecting an average turnover of 5.93 billion euros…. Note that the group has included in its 2022 balance sheet the Dutch company GrandVision, acquired in mid-2021.
According to EssilorLuxottica, “all the main product categories – sunglasses/optical frames, lenses and contact lenses – are growing at the same rate.”
On the other hand, “the developing regions, Asia-Pacific and Latin America, performed better than the mature markets, North America and EMEA (Europe, Middle East, Africa, editor’s note), whose first quarter of 2022 was the best quarter of the year.”
In Asia-Pacific, which benefited from the removal of sanitary constraints in China, sales rose by 12% at constant exchange rates to 750 million euros. In Latin America, sales rose by 11.5% to 349 million euro.
Mature markets also doing well
But the other mature markets are not standing still either. Growth in the Europe, Middle East and Africa (EMEA) region reached +9% to 2.19 billion euros in the first quarter. While in what is already the group’s number one market – North America – sales at constant exchange rates rose by a further 7% to 2.86 billion euros.
The stock market appreciated: at 3:15 pm, EssilorLuxottica’s share price was up by 6%!
Read also > EssilorLuxottica topped out in 2022
Featured photo : © EssilorLuxottica
