CHARENTON-LE-PONT, France,
April 23, 2010 /PRNewswire/ --
Essilor International, the world leader in ophthalmic optics, today
announced that consolidated revenue for the three months ended
March 31, 2010 rose by 7.8% to
EUR905.8 million, in line with stated
objectives.
Revenue was up 2.5% like-for-like, led by sharply higher sales
in emerging markets and a gradual upturn in business in mature
markets. Eyecare professionals responded favorably to the launch of
new products like the Varilux Physio(R) 2.0 lens, personalized
lenses integrating Eyecode(TM) technology in Europe and Crizal Forte lenses worldwide. Unit
sales rose, led by the implementation of the mid-range product
strategy.
Changes in the scope of consolidation accounted for 5.1% of
reported growth, of which 2.9% for so-called "organic" acquisitions
of prescription laboratories and distributors and 2.2% for the
acquisition of FGX International.
The currency effect was almost neutral, at 0.2%. The decline in
the US dollar against the euro was offset by a rise in other
currencies, in particular the Brazilian real, the Canadian dollar
and the Australian dollar.
Consolidated revenue
EUR millions Q1 2010 Q1 2009 % Change % Change Contribution
(reported*) (like-for-like) from
acquisitions
TOTAL 905.8 840.3 +7.8% +2.5% +5.1%
Optical lenses 863.9 815.9 +5.9% +2.7% +4.0%
and instruments
Europe 345.3 330.0 +4.6% +0.7% +3.2%
North America 375.6 372.5 +0.9% +2.1% +2.6%
Asia-Pacific & 103.1 85.6 +20.4% +8.5% +3.3%
Africa
Latin America 39.9 27.8 +43.6% +15.3% +5.9%
Laboratory 23.6 24.4 -3.4% -3.4% 0%
equipment
FGX 18.3 - - - -
International
*Currency effect: +0.2%
Business by region
In Europe, business overall
continues to improve each quarter, although performance and trends
vary from one country to another. Sales increased in France thanks to a solid improvement in the
lens business and strong demand for instruments. Belgium saw a return to growth, as did
Eastern Europe, led by
Poland. Demand was stable in the
United Kingdom, while conditions
remained difficult in certain Scandinavian countries, the Netherlands and Spain.
In North America, business was
sustained by a sharp increase in unit sales, especially in
the United States where all
distribution networks contributed to growth.
In Asia, growth was very strong
in emerging markets, particularly India, the ASEAN countries and China. In Australia, sales to independent eyecare
professionals trended upwards, while in Japan demand remained sluggish.
In Latin America, business
improved in all countries. In Brazil, sales of premium and mid-range
products continued to rise.
Equipment sales to prescription lens laboratories started to
pick up during the quarter with order intake rising substantially,
especially in emerging markets.
Significant first-quarter events and other transactions
Acquisitions
Essilor pursued its strategy of organic acquisitions, carrying
out seven new transactions.
- During the quarter, majority interests were acquired in ILT
Danyang in China, Ghanada Opticals
in the United Arab Emirates and
Eyebiz in Australia. All of these
transactions had been previously announced. Following the
successful launch in the United
States of an online sales service for eyecare professionals,
Essilor of America announced the acquisition of a majority stake in
Frames for America, which operates the FramesDirect.com website and
generates annual revenue of approximately $10 million.
- Since April 1, three new
transactions have been carried out:
- In the United States, Essilor acquired Hawkins, a
Kansas-based prescription laboratory with $4.5 million in revenue.
- In Taiwan, a majority stake was acquired in SMJ, a
prescription laboratory and distributor with EUR1.6 million in revenue,
which will extend Essilor's local offering.
- In the Equipment Division, the Company acquired a 60%
interest in DAC Vision, one of the world's leading manufacturers of
consumable supplies for surfacing, coating and mounting lenses. With
operations in Europe and the United States, 65 employees and annual
revenue of around EUR30 million, DAC Vision will continue to be led by
its current management team. This partnership should enable Essilor to
extend the product offerings delivered by the Satisloh and Delamare
networks, for the benefit of customers.
Since the beginning of the year, Essilor has also made two
strategic acquisitions: FGX International, the North American
leader in non-prescription reading glasses with $259 million in 2009 revenue, and California-based Signet Armorlite, one of the
largest independent manufacturers of ophthalmic lenses and the
exclusive producer of Kodak-brand lenses, with 2009 revenue of
approximately $115 million.
Other transactions
Essilor also announced its support for Cinven Investment Fund's
tender offer for Sperian Protection, in which Essilor holds a
15.05% stake. A long-time shareholder in Sperian Protection,
Essilor has pledged to support the company in this new phase of its
development, alongside a recognized financial partner.
Share buybacks - Cash position
Since January, Essilor has purchased 1.76 million of its own
shares on the market, for a total of about EUR79 million. These share buybacks are intended
to offset potential dilution from the conversion of outstanding
OCEANE bonds and from shares issued as part of employee share-based
payment plans. Due to the FGX acquisition, share buybacks and
seasonal fluctuations in business, net debt amounted to
EUR360 million at March 31, implying gearing of some 12%.
A conference call in French will be held today at 10:00 a.m. CEST.
The number to dial is: +33(0)1-70-99-42-98
The conference will be available for later listening at:
http://hosting.3sens.com/Essilor/20100423-AD08FC3E/fr/
A conference call in English will follow at 11:00 a.m. CEST.
The number to dial is: +44(0)20-7138-0825
The conference will be available for later listening at:
http://hosting.3sens.com/Essilor/20100423-AD08FC3E/en/
Forthcoming investor events
The Annual Shareholders' Meeting will be held on May 11, 2010.
First-half earnings will be released on August 27, 2010.
The world leader in ophthalmic optical products, Essilor
International researches, develops, manufactures and markets around
the world a wide range of corrective lenses to improve and protect
eyesight. Its flagship brands are Varilux(R), Crizal(R),
Essilor(R), Definity(R) and Xperio(TM).
Based in France, the company
reported consolidated revenue of more than EUR3.2 billion in 2009, with nearly 35,000
employees and operations in 100 countries.
For more information, please visit http://www.essilor.com.
The Essilor share trades on the NYSE Euronext Paris market and
is included in the CAC 40 index.
Codes and symbols: ISIN: FR FR0000121667; Reuters: ESSI.PA;
Bloomberg: EI:FP.
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Investor Relations and Financial Communications
Veronique Gillet - Sebastien Leroy
Phone: +33(0)1-49-77-42-16
invest@essilor.com
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