Revenue of EssilorLuxottica falls slightly below expectations due to inflation impact

EssilorLuxottica's margin falls slightly short of predictions due to inflation impact 

By Bloomberg 

Posted on Feb 14, 2024 

The French-Italian eyewear manufacturer EssilorLuxottica SA, running Ray-Ban and Oakley brands, has revealed a margin slightly under what analysts predicted. 

The company has been grappling with increased costs and persistent inflation. They have responded by strengthening their synergies and ensuring notable revenue growth. According to the firm's statement on Wednesday, the adjusted operating margin for the year 2023 was 16.5%, slightly under the Bloomberg consensus of 16.9%. 

The company reaffirmed its goal of medium-range annual revenue growth in single digits from 2022 to 2026 at unchanged exchange rates. It is aiming for an adjusted operating profit constituting 19%-20% of its revenue by the conclusion of this period. The previous year was marked by significant investments supporting the introduction of new product categories. 

Francesco Milleri, the Chief Executive Officer, mentioned the Stellest myopia range along with Ray-Ban's Meta wearables. 

The company also expanded its portfolio to include established brands like Moncler and Jimmy Choo. Being a product of the merger of two high-profile European eyewear manufacturers, EssilorLuxottica serves as the global leader in the production and sale of prescription eyeglasses, sunglasses, and contact lenses. 

The sales for the last quarter reached €6.25 billion ($6.7 billion), slightly outperforming the Bloomberg consensus of €6.24 billion. The best performance for the quarter was noted in the Asia-Pacific and Latin America regions, displaying a growth of 10.3% and 12.7%, respectively. 

EssilorLuxottica announced a proposed dividend rise of 22% to €3.95 in comparison to the previous year.