Global optics giant EssilorLuxottica has reported strong growth in sales, boosted by all regions, and in profit and operating profit. It also confirmed its sales growth targets for 2022-2026.
The global eyewear behemoth has no regrets about the 2018 merger of its two constituent entities: Essilor and Luxottica. The takeover of GrandVision, the Dutch retail giant, in mid-2021 also looks like a good deal.
EssilorLuxottica has indeed shown a very good performance for the year 2022.
Its annual turnover (restated to include GrandVision sales for the full year) rose by 14% to EUR 24.5 billion. Although slightly below the expectations of analysts surveyed by Factset, this is a record level for EssilorLuxottica.
The group’s share of net profit was rounded up by 50% to EUR 2.1 billion in 2022.
Lastly, adjusted operating profit from the acquisition of GrandVision was up 21% to EUR 4.1 billion. The adjusted operating margin has thus risen from 16.1% of its turnover in 2021 to 16.8% in 2022.
Growth everywhere
Its sales of lenses and optical equipment (“direct to consumer” division) rose last year by 8.6% at constant exchange rates to €12.7 billion. Wholesale sales rose by 6.3% to 11.7 billion euros.
Geographically, growth was achieved everywhere. Turnover in North America, its largest market, rose by a further 4% to almost 11.5 billion euros. In its second largest market, Europe, sales rose by 11.2% to 8.7 billion euros. Asia-Pacific and Latin America also showed strong growth (+7.2% to 2.8 billion euros and +13.1% to 1.4 billion euros respectively).
Pink glasses
These results allow Essilorluxottica to be generous with its shareholders: its board of directors will recommend to the general meeting the distribution of a dividend of 3.23 euros compared with 2.51 euros per share a year ago.
Finally, the group continues to wear its rose-coloured glasses and confirms its objectives: annual growth in turnover at constant exchange rates of around 5% between 2022 and 2026, and adjusted operating profit of around 19 to 20% of turnover at the end of this period.
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