By 2027 the turnover of Safilo will grow by 4% per year reaching a value of 1.3 billion euro, with owned brands that will come to represent 50% of turnover and growing “mid to high single digit” (therefore between 5 and 9 per cent) and new channels (online, B2b and sport) with double-digit growth. This was announced by the CEO of Safilo, Angelo Trocchiaon the occasion of Capital market day of the eyewear group where the 2022 results and the new five-year plan were illustrated.
1% of the expected growth will come from new M&A, thus confirming that the group is interested in expanding its portfolio with selected transactions. There are still no open dossiers on the table, but the management has precisely identified the target of brands that could join the group. “We have identified three criteria: they must be a B2C brand, i.e. with a strong e-commerce characterization, they must have a strong presence in North America, and they must be companies that can strengthen us both in terms of and in the world of sport”. the latter is already covered by the eyewear reality through house brands and licenses but represents a lively segment in which significant growth is expected, to reach 12% of turnover.
In terms of 2022 data, Safilo closed the year with net sales of just over one billion euros, up 11.1% at current exchange rates and 4.2% at constant exchange rates compared to 2021, while organic sales grew by 7.7% at constant exchange rates. Adjusted EBITDA stood at €101.2 million, equal to a 9.4% margin on sales, up 24.2% compared to 2021, while the margin improved by 100 basis points compared to last year. Adjusted net profit amounted to €58.3 million, compared to €27.4 million recorded in 2021. In 2022, free cash flow was negative by €16.5 million, compared to the negative figure for 2.7 million euros recorded in 2021.
From a geographical point of view, North America still represents the main basin with a weight of 46% but slowing down compared to last year (+6.8% at current exchange rates), Europe which accounts for 40% saw an increase sales up 12.3% at current exchange rates, Asia and the Pacific up 9.8% and the Rest of the World recorded +33.1%. “In the future, North America and Europe will remain the fundamental geographies but we believe that in the coming years the emerging markets will grow at a faster rate”, explained Trocchia, who specifies that the focus will also be on growth in emerging countries “which by 2027 they will reach 20% of revenues”. In terms of sales channels, “our focus is and will remain opticians and large chains, but we want to accelerate the growth of B2C which will reach 20% of revenues”.
Another fundamental lever will be the digital strategy with the supervision of two digital hubs, one in Portland and San Diego focused on the consumer and the other in Padua with a greater concentration on the customer side.
Finally, the news of the sale of the Longarone plant has been confirmed “to third parties who will be able to ensure continuity of know-how and the least possible social impact – explains the CEO who adds: “We have an advisor who is supporting us in the search for potential interested companies and we are working together to identify a short list of companies in the eyewear or fashion sector”. The decision to sell the plant is linked to issues of overcapacity. “The decision is unfortunately based on the pure observation that we are sitting on a structural overcapacity”. The Longarone plant would, in fact, be specialized in production in metal, a material that is now less present in the portfolio of the Safilo group brands.
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