Safilo Group Spa announced yesterday that it has approved its balance sheet as of December 31, 2022. The balance sheet shows a significant improvement in all key economic indicators. In order to maintain its competitiveness, the group is also disposing of its Longarone plant.
The Italian eyewear group has lifted the veil on satisfactory performance in 2022. Safilo posted an adjusted net profit of €58.3 million, compared to €27.4 million in the same period last year, an increase of 113%! Net sales for the period increased by 11% to EUR 1.07 billion.
Europe remained the main growth driver in 2022, with growing activity in Turkey and Poland in particular.
“We are proud of the significant progress made by the group so far, despite a global health and economic crisis that has forced us to face the situation with a great deal of pragmatism, often making difficult choices”, commented Angelo Trocchia, CEO of Safilo Group.
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Encouraging figures
Regarding other figures for the year, adjusted EBITDA increased by 24% to 101.2 million euros. Adjusted EBIT increased by 63 percent to EUR 53.5 million. For the fourth quarter of 2022, Safilo’s net sales amounted to EUR 245.4 million, compared to EUR 232.2 million in the same quarter of 2021. Gross margin for the fourth quarter increased by 57 percent to EUR 139.1 million.
However, a grey area remains. In 2022, the group’s free cash flow was negative 16.5 million euros, compared to 2.7 million euros in 2021. Similarly, the group’s net debt of about €113.4 million as of Dec. 31, 2022, is down slightly from €115.4 million as of Sept. 30, 2022, but up slightly from €94 million as of Dec. 31, 2021.
On Thursday, Safilo closed the stock market in the green, up 0.4 percent to 1.42 euros per share.
A clear future
The group also announced its forecasts for the future. For 2027, Safilo is targeting sales of around 1.3 billion euros. Similarly, it estimates an EBITDA margin of between 12 and 13 percent, as well as positive cash generation throughout the plan.
“Over the next few years, we expect more significant growth in North America and emerging markets, as well as greater growth in our business in the sports channel dedicated to outdoor products, and in all the online channels that we have successfully developed in recent years”, explained Angelo Trocchia.
Longarone factory for sale
The group has also confirmed that it may sell its Longarone factory in northeast Italy. Safilo is “currently evaluating a potential transfer of the Longarone plant to potential third parties with a view to preserving the know-how of the site and minimizing the social impact,” the company said in its statement.
The plant, which employs nearly 500 people, is no longer considered strategic by the company.
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