SAFILO GROUP announces its results for 2006: record sales and extremely strong growth in profits. Distribution of dividends proposed

23/03/2007
Main economic indicators for the financial year 2006 

• Group’s consolidated turnover: € 1,122 million (+9.4% compared to 2005)
• EBITDA: € 162.4 million (+6.1% compared to 2005)
• Net profit: € 37.5 million (ten fold increase compared to 2005)
• Net Debt: € 532 million ( € 479 million at the end of 2005)
• Shareholders’ equity: € 839 million (€ 822 million at the end of 2005)
• The distribution of a dividend of Euro 0.02 per share is proposed

Padova, 23rd March 2007 – The Board of Directors of Safilo Group Spa today reviewed and approved the draft financial results relating to 2006 which will be presented for approval during the Shareholders’ meeting called for 24th April 2007.

Consolidated results

Consolidated turnover, as noted in previous press releases, was the highest in the Group’s history, totalling 1,122.0 million Euro. The increase in turnover was achieved in every principal worldwide market with particularly significant results in Italy (+15.2%) and in the United States (+9.2%).

The Group’s operating result continued to improve despite some exceptional costs, and reached an EBITDA of 162.4 million Euro against the 153.0 million Euro of 2005 (+6.1%). The Group achieved an impressive EBITDA of 34.3 million Euro in the third quarter alone, an increase of 34% compared to the same period of the previous year.

The increase in profitability is due to the excellent sales results and to the first effects of the industrial reorganisation which have compensated for the costs deriving from the termination of a licence agreement. The incidence of sales and general costs on turnover has remained stable.

The management of financial costs and interest has seen the expenses sustained in the year halved compared to 2005. This considerable achievement is due to the positive effects of the increase in capital at the end of 2005 and to the clear improvement in the cost of the indebtedness.significant reduction of the company’s debt and a lesser impact from exchange rate differences.

These improvements in all the main areas of company management have allowed for a considerable increase in net profit which reached 37.5 million Euro at the end of the year, a ten fold increase compared to the result achieved in 2005.

The acquisition of the Spanish retail chain Loop Vision and the development of the American chain Solstice have contributed to an increase in the Group’s financial position which reflects the need for working capital in order to support the particularly positive growth in sales.

Distribution of Dividends

The Board of Directors has proposed to the Shareholders’ Meeting the distribution of a dividend equal to 2 Euro cents per share with detachment of coupons on 21st May 2007 and payment on 24th May 2007.


Vittorio Tabacchi, Chairman of Safilo Group, while commenting on the results achieved, stated:

“The year end results for 2006 confirm that Safilo Group is a solid company, in good financial health and profitable enough to once again distribute a dividend to its shareholders. 2006 was one of the most important years in Safilo’s history and I am particularly proud to note how the impressive results announced today are confirmation of the effectiveness of the Group’s strategy and the organisational choices made for the company’s top management. Significant investments in research and development, an advanced and world class industrial structure, an efficient distribution network, a first rate international brand portfolio; all these elements lead me to believe that 2007 will be a year of even greater achievements for Safilo Group with positive results for both sales and profits. My expectations are furthermore fully confirmed by the extremely positive reaction to the new collections seen during the first months of 2007. Our objective now is to continue to grow. The challenge for 2007 will be to become leader in those markets where we do not yet occupy first place and improve our leadership position in those markets where our first place position is already recognised. Safilo Group’s mission is to create and distribute high-end eyewear collections - we intend to maintain our world leader status as such.”


Meeting with analysts

At 12.00 (local time) today a conference call will be held with financial analysts and investors during which the Group’s economic and financial results will be discussed. It is possible to connect to the call by dialling the following number: +39 02 802 09 11.


Adherence to the Code of Self Discipline

The Board of Directors of the Company, during today’s Board Meeting, has furthermore approved the adherence to the new Code of Self Discipline for listed companies in accordance with the version published on March 14th 2006 by the Committee for Corporate Governance of Borsa Italiana S.p.A..
In the report on Corporate Governance, relating to the financial year 2006, the appropriate information will be provided regarding the adherence to the recommendations of the Code and their application.
The Safilo Group is leader in premium eyewear and maintains a leadership position in the sector of prescription, sunglasses, fashion and sports eyewear.
Present on the international market through exclusive distributors and 30 subsidiaries in primary markets (U.S.A., Europe and Far East), Safilo distributes proprietary branded collections Safilo, Carrera, Smith, Oxydo, Blue Bay, as well as licensed branded collections, including Alexander McQueen, Bottega Veneta, Boss Hugo Boss, Boucheron, Diesel, 55DSL, Dior, Emporio Armani, Giorgio Armani, Gucci, Imatra, Marc Jacobs, Marc by Marc Jacobs, Max Mara, Max&Co., Oliver, Pierre Cardin, Stella McCartney, Valentino and Yves Saint Laurent. In addition, the following collections are exclusively for the American market: Fossil, Juicy Couture, Nine West, Kate Spade, Saks Fifth Avenue, Liz Claiborne, J.Lo by Jennifer Lopez, A/X Armani Exchange and Banana Republic.


Contacts:

Safilo press office
Nicoletta Chinello
ph. +39 049.69.85.379

Community consulenza nella comunicazione
ph. +39 0422.416.111 - 02.89.40.42.31
Auro Palomba – Mob. +39 335.71.78.637
Giuliano Pasini - Mob. +39 335.60.85.019
Marco Rubino – Mob. +39 335.65.09.552

This press release is also available on the web site www.safilo.com.











Last update: 23/07/2010, 15:09