Income Statement
(Millions of euros)
|
2019 ° °
|
2018
|
2017°
|
2016
|
2015
|
---|
Net sales |
964.7 |
962.9 |
1,035.4 |
1,252.9 |
1,279.0 |
Gross profit |
487.3 |
481.5 |
519.6 |
715.6 |
757.0 |
EBITDA |
23 |
41.7 |
25.9 |
80.9 |
82.4 |
Operating profit/(loss) |
(294.5) |
(5.9) |
(208.2) |
(116.3) |
0.8 |
Net profit/(loss) attrib. to the Group |
(328.3) |
(32.4) |
(251.6) |
(142.1) |
(52.7) |
Key data per share |
Shares outstanding |
275.703.846 |
250,510,509 |
62,659,965 |
62,659,965 |
62,629,965 |
Basic EPS |
(1.191) |
(0.300) |
(4.015) |
(2.269) |
(0.843) |
° °2019 economic and financial highlights are provided with reference to the Group's total operations, including the US retail business Solstice, sold as of 1 July 2019. 2019 results also include the impacts of the accounting standard IFRS 16, effective from January 1, 2019, without the restatement of 2018 comparative information.
° The new accounting standard IFRS 15 regarding “Revenue from contracts with customers” entered into effect starting from 1 January 2018. Following the fully retrospective approach chosen by the Group, the application of the principle to FY 2017 total net sales had an adjustment effect on the sales and cost of goods sold equal to Euro 11.6 million with a neutral effect on the gross profit.
Balance Sheet
(Millions of euros)
|
2019°°
|
2018
|
2017
|
2016
|
2015
|
---|
Net working capital |
250.8 |
251.3 |
231.6 |
261.7 |
277.7 |
Tangible & intangible fixed assets |
240.6 |
461.6 |
473.3 |
710.0 |
843.7 |
Financial fixed assets |
- |
- |
- |
- |
- |
Non-current assets held for sale |
- |
- |
1.3 |
1.5 |
9.9 |
Other assets/(liabilities) |
(74.7) |
(33.7) |
(41.3) |
(52.1) |
(42.8) |
Net capital employed |
416.8 |
679.2 |
664.9 |
921.2 |
1,088.5 |
Net financial position |
74.8 |
32.9 |
131.6 |
48.4 |
89.9 |
Minority interest |
(0.1) |
- |
- |
- |
1.1 |
Shareholders' equity |
342.1 |
646.3 |
533.2 |
872.8 |
997.5 |
Cash Flow
(Millions of euros)
|
2019°°
|
2018
|
2017
|
2016
|
2015
|
---|
Cash from operating activities prior to changes in working capital |
36.8 |
27.8 |
4.9 |
47.0 |
61.1 |
Changes in working capital |
(10.2) |
(25.1) |
(36.0) |
42.0 |
53.7 |
Cash from operating activities |
26.5 |
2.7 |
(31.1) |
89.1 |
114.8 |
Cash from financing activities |
(41.0) |
(28.3) |
(39.0) |
(44.3) |
(40.0) |
Free cash flow |
(14.5) |
(25.6) |
(70.1) |
44.7 |
74.8 |
Number of Employees
|
2019
|
2018
|
2017
|
2016
|
2015
|
---|
Headquarters |
996 |
1,054 |
1,131 |
1,065 |
1,040 |
Production |
3,607 |
3,706 |
3,910 |
4,117 |
4,141 |
Commercial |
1,151 |
1,239 |
1,335 |
1,141 |
1,319 |
Retail |
- |
595 |
733 |
805 |
825 |
Total |
5,754 |
6,594 |
7,109 |
7,128 |
7,325 |
Adjusted economic KPI*
|
2019°°
|
2018
|
2017
|
2016
|
2015
|
---|
Adjusted EBITDA |
63.7 |
47.5 |
41.1 |
88.8 |
102.4 |
Adjusted Operating profit/(loss) |
(4.1) |
0.0 |
(0.8) |
43.5 |
61.4 |
Adjusted Net profit/(loss) attrib. to the Group |
(13.7) |
(26.7) |
(47.1) |
15.4 |
6.9 |
* In 2019, the adjusted economic results exclude: (i) the impairment of the entire goodwill allocated to the Group’s cash generating units of Euro 227.1 million, (ii) the write-down of deferred tax assets of Euro 22.4 million, (iii) the write-down of fixed assets of Euro 9.0 million for the restructuring plan in Italy, announced on December 10, 2019, (iv) non-recurring costs of 39.4 million, related to the above-mentioned restructuring plan in Italy for Euro 21 million, to the cost saving program undertaken by the Company during the year, and to activities linked to acquisitions and divestitures, and (v) non-recurring items related to the retail discontinued operations for Euro 18.6 million. At the net result level, there was a positive tax effect on the non-recurring costs themselves of Euro 1.9 million.
In 2018, the adjusted economic results exclude non-recurring costs for Euro 5.8 million, mainly related to the CEO succession plan and reorganization costs in North America and Europe, and include an income of Euro 39.0 million, annual portion of the total Euro 90 million accounting compensation for the early termination of the Gucci license.
In 2017, the adjusted economic results exclude: (i) an impairment charge on the goodwill allocated to the Group’s cash generating units for Euro 192.0 million and (ii) non-recurring costs for a total of Euro 15.3 million (Euro 15.2 and 12.5 million, respectively on EBITDA and Net result) related to the reorganization of the Ormoz plant in Slovenia, cost saving and restructuring initiatives, and to some legal litigations; include: (i) an income of Euro43 million, annual portion of the total Euro 90 million accounting compensation for the early termination of the Gucci license.
In 2016, the adjusted economic results exclude: (i) an impairment loss on the goodwill allocated to the Far East cash generating unit for Euro 150.0 million and (ii) non-recurring restructuring costs for a total of Euro 9.8 million (Euro 7.9 and 7.5 million, respectively on EBITDA and Net result) due for Euro 8.6 million to overhead cost saving initiatives, such as the integration of Vale of Leven (Scotland) Polaroid lens production into Safilo’s China based corporate supply network and for Euro 1.2 million to commercial restructuring costs in the EMEA region; include: (i) an income of Euro 8 million related to part of the total Euro 90 million accounting compensation for the early termination of the Gucci license, and (ii) an expense of Euro 4 million related to the final acceleration to P&L of Gucci prepaid royalties.
In 2015, the adjusted economic results exclude: (i) an impairment loss on the goodwill allocated to the Far East cash generating unit for Euro 40.5 million, (ii) commercial restructuring costs in the EMEA region for Euro 1.2 million, other non-recurring costs for Euro 1.8 million mainly related to the consolidation of the Group’s North American distribution network into its Denver facility and Euro 17.0 million for a provision for other risks and charges in relation to the investigation of the French Competition Authority.
Income Statement
(Millions of euros, excl. data per share)
|
H1 2020
|
H1 2019°
|
H1 2018
|
H1 2017°°
|
H1 2016
|
---|
Net sales |
335.6 |
495.9 |
492.2 |
547.2 |
651.1 |
Gross profit |
148.6 |
266.2 |
254.1 |
287.2 |
394.6 |
EBITDA |
(38.6) |
36.3 |
21.7 |
24.1 |
52.2 |
Operating profit/(loss) |
(68.4) |
(218.8) |
(0.4) |
3.3 |
30.4 |
Net profit/(loss) |
(74.8) |
(246.9) |
(13.9) |
(9.6) |
16.5 |
Key data per share |
Shares outstanding (/000) |
275,704 |
275,704 |
62,660 |
62,660 |
62,630 |
Basic EPS |
(0.271) |
(0.991) |
(0.222) |
(0.153) |
0.260 |
° The economic and financial highlights for the first half of 2019 are illustrated with reference to the continuing operations related to the wholesale business, excluding the US retail business Solstice, which was sold on 1 July 2019. The 2019 data also includes the impact of the IFRS 16 accounting standard, entered into force on 1 January 2019.
°° The new accounting standard IFRS 15 regarding “Revenue from contracts with customers” entered into effect starting from 1 January 2018. Following the fully retrospective approach chosen by the Group, the application of the principle to the first semester and second quarter of 2018, had an adjustment effect on the sales and cost of goods sold of the same periods of 2017 equal respectively to Euro 5.4 million and Euro 2.7 million, with a neutral effect on the gross profit. Consequently, Q2 and H1 2017 total net sales were adjusted to Euro 312.6 and Euro 547.2 million respectively.
Balance Sheet
(Millions of euros)
|
June 30 2020
|
June 30 2019
|
June 30 2018
|
June 30 2017
|
June 30 2016
|
---|
Net working capital |
196.7 |
257.4 |
251.7 |
283.5 |
305.2 |
Tangible & intangible fixed assets |
381.5 |
297.7 |
470.0 |
683.3 |
835.8 |
Financial fixed assets |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
Non-current assets held for sale |
5.5 |
0.5 |
0.0 |
1.4 |
9.7 |
Other assets/(liabilities) |
(187.9) |
(83.4) |
(20.8) |
(48.0) |
(49.9) |
Net capital employed |
395.7 |
472.2 |
700.9 |
920.3 |
1,100.8 |
Net financial position |
188.5 |
77.4 |
171.1 |
112.7 |
102.8 |
Minority interest |
44.4 |
0.0 |
0.0 |
0.0 |
1.3 |
Shareholders' equity |
162.8 |
394.8 |
529.8 |
807.6 |
996.7 |
Cash Flow
(Millions of euros)
|
H1 2020
|
H1 2019
|
H1 2018
|
H1 2017
|
H1 2016
|
---|
Cash from operating activities prior to changes in working capital |
(39.3) |
26.5 |
13.4 |
(5.6) |
31.9 |
Changes in working capital |
56.3 |
11.4 |
(37.7) |
(30.8) |
(18.9) |
Cash from operating activities |
17.0 |
37.9 |
(24.3) |
(36.4) |
13.0 |
Cash from investing activities |
(120.9) |
(15.8) |
(13.0) |
(20.8) |
(22.4) |
Cash from repayment principal portion of IFRS 16 lease liabilities |
(5.3) |
(11.7) |
|
|
|
Free cash flow |
(109.2) |
10.4 |
(37.3) |
(57.2) |
(9.3) |
Key Indicators
|
H1 2018
|
H1 2017
|
H1 2016
|
H1 2015
|
H1 2014
|
---|
Gross Margin |
51.6% |
52.5% |
60.6% |
60.7% |
63.3% |
EBITDA |
4.4% |
4.4% |
8.0% |
8.9% |
11.3% |
EBIT margin |
-0.1% |
0.6% |
4.7% |
6.0% |
8.5% |
Net margin |
-2.8% |
-1.7% |
2.5% |
1.2% |
4.8% |
Adjusted economic indicators*
|
H1 2020
|
H1 2019
|
H1 2018
|
H1 2017
|
H1 2016
|
---|
Adjusted EBITDA |
(28.3) |
41.2 |
25.1 |
27.8 |
58.3 |
Adjusted Operating profit |
(55.2) |
13.3 |
3.2 |
7.0 |
37.5 |
Adjusted Net profit/(loss) attrib. to the Group |
(63.7) |
8.5 |
(10.4) |
(6.6) |
22.9 |
*In H1 2020, the adjusted economic results excludes non-recurring costs for Euro 13.2 million (Euro 10.3 million on EBITDA), due to restructuring expenses related to the ongoing cost saving program. In Q2 2020, the adjusted EBITDA excludes non-recurring costs for Euro 7.9 million.
In H1 2019, the adjusted economic results excluded: (i) the impairment of the entire goodwill allocated to the Group’s cash generating units for Euro 227.1 million, (ii) non-recurring costs for Euro 5 million (Euro 3.8 million in Q2 2019) due to restructuring expenses related to the ongoing cost saving program, and (iii) a write-down of deferred tax assets of Euro 23.3 million.
In H1 2018, before non-recurring costs for Euro 3.5 million, mainly related to the CEO succession plan and reorganization costs in North America. In H1 2018, economic results include an income of Euro 19.5 million, as pro-rata portion of the accounting compensation for the early termination of the Gucci license, equal to Euro 39 million for the full year 2018.
In H1 2017, before non-recurring costs of Euro 3.7 million, mainly related to the reorganization of the Ormoz plant in Slovenia and other overhead cost saving initiatives (Euro 3.0 on the Net result). In H1 2017, economic results included an income of Euro 21.5 million as a pro-rata portion of the accounting compensation for the early termination of the Gucci license, equal to Euro 43 million for the full year 2017.
In H1 2016 before non-recurring items of which Euro 4.9 million related to overhead cost saving initiatives, such as the planned integration of Vale of Leven (Scotland) Polaroid lens production into Safilo’s China based corporate supply network, and Euro 1.2 million to commercial restructuring costs in the EMEA region.
Economic and financial highlights
(Millions of euros)
|
9M 2018
|
9M 2017°
|
9M 2016
|
9M 2015
|
9M 2014
|
---|
Net sales |
713.7 |
790.5 |
939.1 |
959.7 |
867.5 |
Gross profit |
366.5 |
407.6 |
564.0 |
577.4 |
540.6 |
EBITDA |
32.7 |
38.8 |
71.0 |
75.1 |
83.3 |
Adjusted EBITDA* |
37.2 |
43.2 |
77.4 |
77.4 |
86.3 |
Net financial position |
144.2 |
135.9 |
111.5 |
97.1 |
158.9 |
° The new accounting standard IFRS 15 regarding “Revenue from contracts with customers” entered into effect starting from 1 January 2018. Following the fully retrospective approach chosen by the Group, the application of the principle to the first nine months of 2018, had an adjustment effect on the sales and cost of goods sold of the same period of 2017 equal to Euro 7.2 million, with a neutral effect on the gross profit. Consequently, 9M 2017 total net sales were adjusted to Euro 790.5 million.
*In 9M 2018, the adjusted EBITDA excludes non-recurring costs for Euro 4.4 million, mainly related to the CEO succession plan and reorganization costs in North America, and includes an income of Euro 29.3 million, as pro-rata portion of the accounting compensation for the early termination of the Gucci license, equal to Euro 39 million for the full year 2018.
In 9M 2017, the adjusted EBITDA excludes non-recurring costs of Euro 4.4 million, mainly related to the reorganization of the Ormoz plant in Slovenia and other overhead cost saving initiatives, and includes an income of Euro 32.3 million as a pro-rata portion of the accounting compensation for the early termination of the Gucci license, equal to Euro 43 million for the full year 2017.
In 9M 2016, the adjusted EBITDA excludes non-recurring costs for Euro 6.4 million of which Euro 5.2 million related to overhead cost saving initiatives, such as for example the planned integration of Vale of Leven (Scotland) Polaroid lens production into Safilo’s China based corporate supply network, and Euro 1.2 million related to commercial restructuring costs in the EMEA region.
In 9M 2015, the adjusted EBITDA excludes non-recurring costs related to the commercial restructuring costs in the EMEA region for Euro 1.2 million and other non-recurring costs for Euro 1.2 million mainly related to the consolidation of the Group’s North American distribution network into its Denver facility.
In 9M 2014, the adjusted EBITDA excludes non-recurring costs for Euro 3.0 million related to both reorganization costs and the voluntary exit agreements for some employees of the Italian plants.
Income Statement
(Millions of euros)
|
Q4 2018
|
Q4 2017°
|
Q4 2016
|
Q4 2015
|
Q4 2014
|
---|
Net sales |
249.1 |
244.8 |
313.9 |
319.2 |
311.2 |
Gross profit |
115.0 |
112.0 |
151.7 |
179.5 |
178.0 |
EBITDA |
9.0 |
(12.9) |
9.9 |
7.3 |
27.4 |
Adjusted EBITDA * |
10.3 |
(2.1) |
11.4 |
25.0 |
32.1 |
° The new accounting standard IFRS 15 regarding “Revenue from contracts with customers” entered into effect starting from 1 January 2018. Following the fully retrospective approach chosen by the Group, the application of the principle to 2018 had an adjustment effect on the sales and cost of goods sold of Q4 2017 equal to Euro 4.4 million, with a neutral effect on the gross profit.
*In Q4 2018, the adjusted EBITDA excludes non-recurring costs for Euro 1.3 million and includes an income of Euro 9.8 million, as pro-rata portion of the annual accounting compensation for the early termination of the Gucci license
In Q4 2017, the adjusted EBITDA excludes non-recurring costs for a total of Euro 10.9 million related to cost saving and restructuring initiatives and to some legal litigations, and it includes an income of Euro 10.8 million, as a pro-rata portion of the accounting compensation for the early termination of the Gucci license, equal to Euro 43 million for the full year 2017.
In Q4 2016, the adjusted EBITDA excludes non-recurring restructuring costs for a total of Euro 1.5 million and includes an income of Euro 8 million related to part of the total Euro 90 million accounting compensation for the early termination of the Gucci license, and an expense of Euro 4 million related to the final acceleration to P&L of Gucci prepaid royalties.
In Q4 2015, the adjusted EBITDA excludes non-recurring costs for Euro 17.0 million related to a provision for other risks and charges in relation to the litigation with the French Competition Authority, and other non recurring costs for Euro 0.7 million mainly related to the consolidation of the Group’s North American distribution network into its Denver facility. The adjusted economic results also exclude an impairment charge on goodwill for Euro 40.5 million.
In Q4 2014, the adjusted EBITDA excludes non-recurring costs for Euro 2.2 million related to Executive Officers succession plans and to Smith Sport Optics restructuring for 2.5 million Euro.