MILAN — A renewed demand for premium eyewear in the U.S. and Asia and a strong performance of its own Carrera brand helped Safilo Group SpA return to the black in 2010.
In the fiscal year ended Dec. 31, the Italian eyewear maker posted a net profit of 700,000 euros, or $924,000, compared with a net loss of 351.4 million euros, or $488.4 million, in 2009 when Safilo’s bottom line was hit by nonrecurring writedowns and nonmonetary items totaling 318 million euros, or $442 million.
In 2009, net losses from ordinary activities totaled 33.7 million euros, or $46.8 million.
In the fourth quarter of 2010, Safilo registered a profit of 4.4 million euros, or $5.9 million, compared with a loss of 12.9 million euros, or $18.9 million, in the same period the previous year.
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Sales last year grew 6.8 percent to 1.08 billion euros, or $1.43 billion, from 1.01 billion euros, or $1.47 billion, in 2009.
Earnings before interest, taxes, depreciation and amortization (EBITDA) surged 85.1 percent to 107.8 million euros, or $142.3 million, compared with 58.2 million euros, or $80.9 million, the previous year. EBITDA from ordinary activities totaled 65.7 million euros, or $91.3 million, in 2009.
Dollar figures are converted at average exchange rates for the periods to which they refer.
Chief executive officer Roberto Vedovotto said “2010 will be remembered as one of the most meaningful years in Safilo’s history.” Vedovotto referred to Safilo’s recapitalization plan initiated in March last year, the renewal of some of the group’s licenses with brands such as Bottega Veneta, Yves Saint Laurent and Marc Jacobs, and a newly strengthened management team, which includes Melchert Frans Groot from new majority shareholder HAL Holding, as the group’s chairman. Safilo produces eyewear collections for designers such as Giorgio Armani, Dior, Gucci, Valentino and Tommy Hilfiger. In October 2009, Safilo signed an agreement with its new main shareholder, Amsterdam-based retailer HAL Holding NV, to initiate a long-term recapitalization plan and thus escaped bankruptcy.
“After two challenging years, Safilo has begun to grow again, leveraging on its critical success factors, in the context of a general improvement of the business environment in the more mature markets and of the strong demand for premium eyewear products in the so-called emerging countries,” said Vedovotto, underscoring the company’s progressive growth throughout 2010.
Geographically, sales in the Americas rose 15.1 percent to 460.5 million euros, or $607.8 million and revenues in Asia gained grew 23.7 percent to 161.6 million euros, or $213.3 million, in the year.