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Essilor Reports Revenues Rose 19.1 Percent in 2012

March 1, 2013 12:17 AM

CHARENTON-LE-PONT, France— Essilor International (Reuters: ESSI.PA) posted strong revenue and earnings growth in 2012, citing a “buoyant market” and “clear strategy” as contributing factors.

The company announced yesterday that it generated €4.99 billion in consolidated revenue for the year ending Dec. 31, 2012 versus €4.19 billion, up 19.1 percent from 2011. Like-for-like revenue growth was 5.2 percent. Before tax profits totaled €837.5 million versus €697.58 million euros in the prior year.

Essilor said the increases reflected “vibrant sales by the Lenses and Optical Instruments business across all regions and the good performance of the Readers business.” Acquisitions raised revenue by 9.3 percent. The inclusion of Shamir Optical’s first-half revenue and the impact of consolidating StyleMark from Jan. 1, 2012 added 4.1 percent, the partnerships and bolt-on acquisitions signed in 2011 and 2012 contributed 2.8 percent and the consolidation of Nikon-Essilor and Essilor Korea on a 100 percent basis (versus 50 percent previously) contributed 2.4 percent, according to Essilor. The currency effect was a positive 4.6 percent, reflecting primarily the U.S. dollar’s appreciation against the euro, but also the appreciation of the Canadian and Australian dollars, the British pound and the Chinese yuan. Conversely, the depreciation of the Brazilian real had a negative impact on revenue, the company said.

Essilor said the growth was driven by several key factors, included strong demand for its new Crizal UV and Varilux S series lenses, a ramp-up in the mid-range segment and in fast-growing countries, the signing of 24 partnerships and the successful integration of Stylemark into FGX, a leading North American producer of non-prescription glasses.

“In light of these robust 2012 results, Essilor is looking to the future with confidence and enthusiasm, inspired by the importance of its corporate mission to improve vision worldwide, for all and wherever they are,” said Hubert Sagnieres, Essilor’s chairman and CEO. “Of the 4.2 billion people worldwide who have a vision problem, 2.5 billion don’t have corrective eyewear yet. Essilor is deploying a powerful strategy based on innovation, partnerships and development in the mid-range segment and in fast-growing markets. With our many strengths, we are confident in our ability to deliver in 2013 another year of revenue growth and high operating margins.”

Essilor reported that on a like-for-like basis, revenue in North America was up 4 percent; in the U.S., it grew 5.0. In Europe, revenue grew 2.6 percent like-for-like, in the Asia-Pacific/Middle East/Africa region it rose 12.3 percent like-for-like, and in Latin American Essilor posted a 13 percent revenue increase, like-for-like.

Essilor reported that its Instruments Division experienced a limited decline in business during 2012. Essilor’s Equipment Division reported a 1.4 percent increase in like-for-like revenue. The division’s solid performance reflects ongoing laboratory investment in digital surfacing machines, primarily in the U.S. and Latin America, as well as firm demand in the Consumables division, Essilor said. Satisloh’s overall volumes were also lifted by the extension of a contract to supply one-hour anti-reflective lens machines to LensCrafters, a large optical chain in the U.S., according to Essilor.

Essilor also announced that its Signet Armorlite subsidiary has renewed the Kodak lens manufacturing and distribution license signed with Eastman Kodak. The $30.5 million investment will allow Signet Armorlite, the company’s subsidiaries and some of its partners, to use the Kodak brand throughout the world until 2029.

During fourth quarter, 2012, Essilor said it generated €1.22 billion in revenue, a 12.8 percent increase over the year-ago period, or 3.6 percent like-for-like. The contribution from acquisitions was 6.9 percent.

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