EssilorLuxottica: Strong sales growth and restriction of operations in Russia

The Board of Directors of EssilorLuxottica met on March 10, 2022 to approve the consolidated financial statements for the year ended December 31, 2021. Furthermore the company announced news about their activities in Russia.

Restricting operations

EssilorLuxoticca said in a post on its LinkedIn page  that it was temporarily restricting operations in Russia, due to uncertainties and significant disruptions, but: “In line with our Mission we are comittted to continue providing essential medical vision care services”.

At the Board of Directors meeting Francesco Milleri and Paul du Saillant, CEO and Deputy CEO of EssilorLuxottica, said:

 “Our thoughts go out to all those affected by the tragedy unfolding in Ukraine. At this difficult time, the safety of our
people remains our priority and we are providing all the support possible to our affected teams in the region. Looking at our financial results, 2021 has been an extraordinary year for EssilorLuxottica. In the face of a continuously challenging environment, we managed to grow our sales and profits beyond pre-pandemic levels, meeting our guidance on sales and exceeding it on operating margin […].

Financial results

According to Reuter, EssilorLuxottica reported strong sales growth in the fourth quarter, rising further above pre-pandemic levels and boosted by its performance in the United States and its GrandVision acquisition. Shares in EssilorLuxottica were up 2.3% after the quarterly results, which slightly beat analysts’ forecasts.

The company said fourth-quarter revenue came to 5.58 billion euros ($6.14 billion), including GrandVision, up around 32% from a year earlier and up nearly 35% from the 2019 pre-pandemic level at constant exchange rates. Excluding the GrandVision acquisition, fourth-quarter revenue rose 11% from the same period in 2019 pre-pandemic.

The group acquired over 76% of the Dutch eyewear retailer in July and completed the purchase of remaining shares in January. GrandVision added more stores to the group’s retail business, which now generates half of EssilorLuxottica’s sales.