Safilo Group S.p.A.’s first-half 2021 results saw revenue growth of 7.7% at constant exchange rates and a 20.5% increase at the adjusted EBITDA level. This continued the solid revenue momentum seen in the first three months of the year.
One had benefited from the significant organic growth of the core brands already in the portfolio, said CEO Angelo Trocchia, as well as from the full compensation of the brands discontinued at the end of 2020 with the acquisitions of Blenders and Privé Revaux, and the successful launch of new licences, such as Dsquared2 in May and as recently as July with Carolina Herrera. The recovery was also supported by the scale of the consumer recovery in the United States, but also by strong business performance in China, Australia and most Middle Eastern countries, it said.
Net sales in the first half of the year amounted to €510.7 million, up 59.9% on H1 2020, 7.7% on H1 2019 (at constant exchange rates), according to Safilo. Adjusted EBITDA €49.7m, a margin of 9.7% vs 8.4% in H1 2020, 8.3% in H1 2019. Adjusted net income €4.4m vs €63.7m in H1 2020, €8.5m in H1 2019. Group net debt: €226.9m vs €222.1 as at 31 December 2020.
Safilo’s second quarter
Gross profit in Q2 2021 increased to €135.6 million, according to Safilo, registering an exponential increase compared to the €39.2 million in Q2 2020. Gross margin in Q2 2021 reached 52.3%, compared to 34.2% in Q2 2020 and 54.7% in Q2 2019. On an adjusted basis, gross profit in Q2 2021 amounted to €139.4 million and a margin of 53.7%.
Safilo is also pleased with its cash flow, saying net debt remained essentially stable compared to the end of last year. This result was achieved despite the payout related to the final closure of the Ormož production site during the period.
“The results of the first half of 2021 and the continuation of positive trends at the beginning of the third quarter make us optimistic about the growth prospects for the current year and consolidate our ambition to exceed pre-pandemic 2019 business levels as early as 2021,” Trocchia said.
EBITDA: Earnings Before Interest, Taxes, Depreciation and Amortisation