Safilo beyond expectations, turnover and profit up compared to 2019

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«It is a result that has gone beyond our expectations. We expected a positive 2021 but the improvement recorded, both in terms of revenues and profitability, compared to 2019 was a goal higher than the estimates “. Angelo Trocchia, CEO of Safilo, in presenting the 2021 financial statements, underlined how last year’s performances managed to exceed the pre-pandemic levels: revenues rose by 3.3% on 2020 to 969.6 million euros (+ 26.3% at constant exchange rates), while the adjusted EBITDA was 81.5 million compared to -3 million in 2020, marking an increase of 25.7% compared to the adjusted EBITDA of 64.8 million in 2019. The group returned to all‘profit of 27.4 million compared to the adjusted loss of 50.1 million in 2020 and to the red from 6.5 million in 2019. The net margin was equal to 2.8% of sales.

In the right direction

“2021 shows that the strategies we are implementing are moving in the right direction: this is a phase in which we leave the situation of the past and begin to write a new chapter in the history of the company” comments Trocchia, who continues: “The result 2021 is the result of what we did during the pandemic in 2020: we have chosen to accelerate instead of stopping in investments for digitization throughout Europe, in the selection and improvement of sales forces even with six months of training and we have strengthened the relationship with customers. Instead of closing the doors, we used that period to strengthen relationships with our stakeholders ».

The results shine in North America

In terms of geographical areas, in comparison with the pre-pandemic, Safilo’s sales in North America increased by 47% at constant exchange rates, thanks to the strong growth in organic sales (+ 15.9%) and the acquisitions of Blenders and Privé Revaux. “The results in North America are more lively than in Europe, driven by a combination of market trends and the choices we have made. The numbers recorded in North America see the effect of the traditional business of that geographical area and the choices of the company with the acquisitions of Blenders and Privé Revaux and the significant performance of our Smith brand for which we have also launched the new e -commerce “observes the CEO, who adds:” We have a new portfolio, after the release of LVMH. We have put those licenses behind us and we have brands that are giving great satisfaction. We are playing with this combination of growth on owned brands and licensed brands, including new ones that are performing well. The secret lies in this balance that we are building. This beginning of the year is proving us right ».

Debts down

As of last December 31, Safilo’s net financial debt amounted to 94 million, down from 222.1 million in 2020 thanks to net proceeds of 133.1 million euros from the capital increase successfully completed in November 2021. “The fundamentals are in place, now we need to manage the situation contingent. We are moving in the right direction – explained Trocchia – also from a financial point of view, after the 135 million capital increase and our debt situation has significantly improved. Safilo is now a healthier situation. We face 2022 with prudent confidence, but more for external reasons than for internal reasons. The first months have had a positive evolution ».

On the industrial front, the CEO observes: «We are also starting to invest seriously in sustainability, starting with materials. On the front of the increase in the prices of raw materials, the main impact we see is certainly that of the costs of logistics and transport, but we will find a way not to be affected. Our production processes are not highly energy-absorbing and therefore we are not penalized like other industries in that respect ».