Essilor Reports Like-for-Like Growth in Third Quarter Revenues
Monday, October 24 2016 | 00 h 00 min | Financial News, Press Release
Charenton-le-Pont, France – Essilor International announced that consolidated revenue for the nine months ended September 30, 2016 totaled €5,306 million, representing an increase of 5.5% as reported.
Nine-Month Revenue
Combined growth (like-for-like growth plus acquisitions) came out at 7.8% and reflects the following key factors:
– A like-for-like increase in consolidated revenue of 3.8%, including good performances for Lenses & Optical Instruments and Equipment, and a slight decline in sales for Sunglasses & Readers, although business rebounded during the third quarter.
– Changes in the scope of consolidation contributed 4% to nine-month 2016 revenue, illustrating Essilor’s active acquisitions and partnerships strategy, especially in Europe and Latin America.
The currency effect reduced revenue by 2.3% in the nine months to September 30, due mainly to the depreciation of the British pound, Brazilian real, Chinese yuan, Canadian dollar and, although the impact diminished in the third quarter on the back of a rebound in the real.
Equipment
The Equipment division saw sales climb 5.4% like for like in the third quarter, and continued to benefit from the investment cycle across the optical industry. In North America, upgraded surfacing and coating machines boosted sales to independent laboratories and leading optical chains alike. Sales rose sharply in Latin America, driven by the growing take-up of digital surfacing equipment by small-sized laboratories. In Asia, strong sales growth was reported on the back of higher production capacity for both the domestic and export markets. Backlog is on the rise.
Acquisitions and Partnerships
Since the beginning of the year, Essilor has pursued its strategy of forging local partnerships by acquiring majority interests in 16 companies representing aggregate full-year revenue of around €205 million.
During the third quarter:
In Europe, Essilor completed the acquisition of MyOptique Group Ltd., a leading European online prescription glasses, contact lenses and sunglasses business. Based in the United Kingdom, MyOptique Group reported £57 million in revenue in its last fiscal year, which ended April 30, 2016.
In addition, as announced on July 29, Essilor of America deepened its footprint in the United States by acquiring a majority stake in US Optical LLC, a New York-based wholesale optical laboratory with around US$35 million in annual revenue.
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