Italian eyewear giant Safilo has announced its recovery from the pandemic, surpassing its 2019 results in 2021. The company reported sales of €969.6 million, a 7.5% increase on a currency-neutral basis, and its adjusted EBITDA rose by 25.7% to €81.5 million. Safilo also reduced its net debt from €222 million to €94 million. This success can be attributed to a business transformation that involved rebalancing its brand, product, and channel portfolios. Safilo’s own brands, prescription frames, and online channel all experienced significant progress.
In spite of facing renewed restrictions due to the spread of the Omicron variant, Safilo delivered strong Q4 results. Total net sales remained stable at €232.2 million compared to the previous year and grew by 3.8% compared to Q4 2019. Organic sales performed exceptionally well, with a 14.3% increase at constant exchange rates compared to the previous year and a 9.9% increase compared to 2019. North America saw significant growth, with sales increasing by 13.3% organically compared to 2020 and 19.7% compared to 2019. In Europe, sales increased by 12.4%, but fell by 2.7% on an organic basis, primarily due to terminated licenses. Sales in Asia Pacific increased by 23% compared to 2020 and 13.8% compared to 2019.
Europe proved to be the most challenging market for Safilo, but the company made progress on an organic basis. Prescription frames performed well in markets such as Italy, France, and the UK. However, the sunglasses market continued to struggle due to the specific business environment it faced. The pandemic disrupted key buying occasions such as vacations and summer socializing, impacting sunglasses sales. Additionally, travel retail, an important sales channel, was severely impacted by the pandemic.
Despite these challenges, CEO Angelo Trocchia remains optimistic about Safilo’s performance. He highlighted the recovery in sales from 2020 and praised the effectiveness of the brand portfolio overhaul strategy implemented in recent years. Trocchia also emphasized the strength of the North American market and credited Safilo’s investment in the region. Smith, one of the brands in Safilo’s portfolio, had a record year in 2021. Safilo’s investment in the online channel also paid off, with online sales accounting for 13.4% of total sales in 2021. This demonstrates the company’s ability to maintain online strength even outside of pandemic-related challenges. Overall, Safilo’s 2021 results showcase its successful recovery and strategic initiatives, positioning the company for continued growth in the future.
Useful links:
– Safilo official website
– Safilo brand portfolio
