Italy's Safilo sees 68.5% fall in H1 net result

By

Cajsa Lykke Carlson

Published
Aug 5, 2015

Italian eyewear maker Safilo, which creates its own designs and also holds the eyewear licenses for many major fashion brands - including Jimmy Choo and Tommy Hilfiger - has posted its results for 2015's first half and second quarter.

Net sales for the first six months of 2015 grew by 11.3% on a reported basis and by 1.0% at constant currencies, with the business recording an improvement  in the second quarter, up 12.0% (+1.2% at constant currencies).

The main growth contributors were key Western European countries, North  America, MEA and Latin America. In the first half of 2015, gross profit grew by  6.9%, having increased by 7% in the second quarter.

Gross margin equalled 60.7% of sales in the first six months and 60.9% in the second quarter. The contraction compared to the comparable periods last year (63.3% and 63.7% respectively in H1 and Q2 2014), continued to be mainly driven by cost inflation increases not yet recovered through industrial efficiencies, as the Group continues to ramp up  its cost savings initiatives.

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In the second quarter, the adjusted EBITDA margin also reflected the Group’s continuing investments in the new global advertising, product campaigns and strengthening of managerial capabilities, all of which will benefit the Group going forward. Gross profit equaled €213.4 million, up 7.0% compared to €199.5 million in the same quarter of 2014.  

In the period, Safilo generated Free Cash Flow of €1.6 million helped on the one hand by the first of three compensation payments of €30 million received in January from Kering, and on the other hand by the ongoing improvement of net working capital management driven by a reduction in inventory days on hand and accounts receivable DSO (days of sales outstanding).