Safilo gross profit increases in third quarter

For the first nine months, Safilo’s net sales grew by 10.6% against the corresponding period last year at current exchange rates and by 1.0% at constant exchange rates.

Q3 performance by region closely resembled the sales trends recorded over the second quarter; net sales grew by 9.0% against Q3 2014 at current exchange rates and by 0.9% at constant exchange rates, continuing to reflect robust business in Europe, North America and in the new Middle East region, and weaker performances in the more challenging market environments of Asia and Brazil.

Gross profit for the first nine months increased by 6.8% and gross margin reached 60.2% of sales. In the third quarter, gross profit grew by 6.6%, while gross margin decreased to 58.8% of sales, negatively impacted by foreign exchange.

At the operating level, adjusted EBITDA was down 10.3% in  the first nine months, but the Group reported for the first time in the year an increase for the third quarter, up 1.2% against last year. The adjusted EBITDA margin stood at 8.1% and 5.2% of sales respectively in the first nine months and in the third quarter of the year.

"Our core markets in Europe and North America and our newly opened markets in the Middle East and  Mexico are showing encouraging growth. Our strategic reorientation in Asia, while in a challenging local market environment, is progressing to plan. We are pleased with our customers’ reactions to our new commercial strategy and our Smile category management programme expansion," said the company's CEO, Luisa Delgado.

Net sales in the rest of the world, comprising mainly the Group’s business in the Middle East and African region, were Euro 23.2 million for the first nine months of 2015, up 31.1% compared to Euro 17.7 million in the same period of 2014 (+30.0% at constant exchange rates), responding positively to Safilo’s investment in the development of white-space markets.