Safilo Group Q3 net sales grow by 8.2 percent

In the third quarter of 2012, net sales of Safilo Group

grew by 8.2 percent, benefitting from the progression of the organic revenues, the consolidation of Polaroid Eyewear and the appreciation of the US dollar. The results achieved by Safilo in the third quarter are consistent with the key trends and business dynamics that had characterized the second quarter. Safilo closed the first nine months of the year with top-line organic growth, holding on to profitability and keeping a solid financial profile.

In line with company expectations, sales and operating margins were affected by the contraction of the brands being phased-out, which however did not prevent Safilo from registering a significant improvement of the net result. At the end of September, the Group net debt was further reduced compared to the end of June, standing at 223.8 million euros (286 million dollars).

Roberto Vedovotto, Chief Executive Officer of Safilo Group, commented, “Throughout the third quarter we continued to work with determination along our operating and strategic guidelines that are translating into an organic growth of our core business. Our main focus has been on the sales growth of the go-forward brands, on the further international expansion of Safilo’s brands, on the Polaroid integration and on minimizing the negative impact of the Armani loss. In addition, Safilo continued to register a positive operating performance despite the phasing-out of the Armani licenses and a solid financial profile also in light of cash flow generation.”

In the third quarter of 2012, Group net sales reached 249.1 million dollars (319 million dollars), growing 8.2 percent compared to 230.2 million euros (294 million dollars) recorded in the third quarter of 2011. The performance of the period benefitted from the sales increase of sunglasses and prescription frames, partially counterbalanced by the contraction recorded by the sport business of the ski goggles and helmets especially in the North American markets.

In the first nine months of 2012, the gross profit reached 509.1 million euros (653 million dollars) compared to 497.6 million euros (638 million dollars) in the first nine months of 2011, with a gross margin of 59.0 percent on sales.