EssilorLuxottica: Q1 Revenue Shows Solid Return to Growth
EssilorLuxottica announced that consolidated revenue for the first quarter of 2021 totalled Euro 4,060 million, representing a year-on-year increase of 7.3% compared to the first quarter of 2020 (+14.3% at constant exchange rates). Consolidated revenue grew by 1.9% at constant exchange rates compared to the first quarter of 2019.
“EssilorLuxottica had a strong start to the year. While the pandemic continued to put up a fight, we fought harder, delivering significant revenue growth that surpassed pre-pandemic levels and met the structural need for good vision. Our passionate employees were not deterred by the adversity – they remained agile and focused on improving the unique journey taken by our customers and consumers.
In the first quarter, we successfully capitalized on the rebound in the US and China, while leveraging our brands, product innovation, distribution and digitalization everywhere in the world.
Our integration gained further momentum and we made good progress in several areas, while continuing to make new bolt-on acquisitions. Our sustainability, social impact and inclusive business agendas remained at the heart of our mission and business model.
The position we’re in today gives us greater confidence in our ability to outperform the industry.” said Francesco Milleri and Paul du Saillant, respectively CEO and Deputy CEO of EssilorLuxottica.
Operational and financial highlights
• Revenue grew at constant exchange rates, both compared to the first quarter of 2020 (+14.3%) and of 2019 (+1.9%). Momentum accelerated towards the end of the quarter.
• First quarter revenue also improved sequentially compared to the growth of 1.7% at constant exchange rates achieved in the fourth quarter of 2020.
• By activities, the optical business, which accounts for around 75% of revenue, continued to drive the performance with sound prescription sales and optical retail. Sun demand bounced back in North America, with Sunglass Hut posting double digit comparable store sales in March compared to 2019.
• E-commerce was up 61% versus 2019 (and +47% versus 2020) at constant exchange rates, with the proprietary mono-brand platforms as a whole doubling in revenue.
• In Lenses & Optical Instruments, the solid ramp-up of all new launches highlighted the success of EssilorLuxottica’s market activation initiatives: Stellest lenses in the myopia control category, Varilux Comfort Max progressive lenses, Ray-Ban Authentic offer in sun and clear prescription; the roll-out of Transitions Signature GEN 8 photochromic lenses, of AVA lenses and of the associated Vision-R 800 measuring instrument also continued successfully.
• By geography, North America showed strong signs of demand recovery, visible across all of the Company’s channels.
• EssilorLuxottica signed several bolt-on acquisitions during the quarter. On February 3, 2021, it announced that it had entered into an agreement with CooperCompanies to create a 50/50 joint venture for the acquisition of SightGlass Vision. And on March 25, 2021, it announced that it had entered into an agreement to acquire US based lab network Walman.
• EssilorLuxottica ended the quarter with Euro 9.3 billion in cash and short-term investments and a net debt of Euro 2.6 billion (including leases liabilities).
Click HERE for the full press release.