The quarrels between the top management do not affect the accounts, at least for now.. EssilorLuxottica closed the first quarter of 2019 with revenue up 7,5% at 4,2 billion euros. At constant exchange rates, the increase is instead 3,7%. “All divisions of the group contributed to the growth, in particular the Lenses & Optical Instruments divisions of Essilor (+7,8%) and Retail of Luxottica (+10,7%) as well as all geographies, with the largest increases in North America (+9,1%), Asia-Oceania-Africa (+8,0%) and Latin America (+8,1%)”, explains the Italian-French group in a note which also highlights the “ significant increase in sales of Essilor, equal to +7,6% (+4,3% at constant exchange rates)” thanks above all to a homogeneous growth of 3,3%. Inorganic growth, equal to 1%, increased compared to 2018 in line with the acquisitions strategy which is regaining momentum in all geographies.
For Luxottica alone, the Italian company grew by 7,5% (+3,2% at constant exchange rates). Sales were driven by the Retail division, which benefited from a successful omnichannel model, strong retail brands and a positive consumer environment in key geographies. Europe and emerging markets supported growth at constant exchange rates. The group confirms its financial targets for 2019.
“I am very pleased with EssilorLuxottica's first quarter results, with all business areas growing.” Comment Leonardo DelVecchio, executive chairman of the company. “2019 started well and Essilor's contribution was important for the business, development of new products and acquisitions, as well as in accelerating synergies with Luxottica”, he underlines Hubert Sagnieres, Executive Vice President.
Luxottica, on the other hand, “contributed with an excellent performance that it has recorded an acceleration of sales, confirming the validity of the strategic choices and commercial policies adopted. Also in the near future we will continue to build success on the strength of our brands, operational excellence and an ever-increasing digitization of the Group”, explains Del Vecchio.
EssilorLuxottica has confirmed its 2019 targets and forecasts of synergies, ranging between 400 and 600 million in the next 3-5 years, silencing rumors of a slowdown in integration due to the war for governance. In this context, a date to mark in red on the calendar will be May 16, the day on which it will meet the shareholders' meeting from which the relationships between the shareholders and in particular between Leonardo Del Vecchio's Delfin and the French managers of the group will emerge more clearly.
In Paris, the share dropped by 0,37% to 106,9 euros.
