Italian luxury eyewear group Safilo reported net result in the first six months of 2015 down by 68.5%, impacted by financial charges behind the net negative exchange rate differences recorded in the first quarter and the effects of the fair value valuation of the equity-linked bonds.
Net sales for the first six months of 2015 grew by 11.3% on a reported basis and by 1.0% at constant currencies, with the business recording an improvement in the second quarter, up 12.0% (+1.2% at constant currencies). Group total net sales totaled Euro 674.9 million, compared to Euro 606.3 million recorded in the same period of 2014.
The main growth contributors were key Western European countries, North America, MEA and Latin America. In the first half of 2015, Safilo reports gross profit increase by 6.9%, having grown by 7% in the second quarter.
Gross margin equalled 60.7% of sales in the first six months and 60.9% in the second quarter. The contraction compared to the comparable periods last year (63.3% and 63.7% respectively in H1 and Q2 2014), continued to be mainly driven by cost inflation increases not yet recovered through industrial efficiencies, as the Group continues to ramp up its cost savings initiatives.
At the operating level, adjusted EBITDA was down 12.6% in the first half and 16.9% in the second quarter, with profitability reflecting the margin performance recorded at the gross profit level. In the second quarter, the adjusted EBITDA margin also reflected the Group’s continuing investments in the new global advertising, product campaigns and strengthening of managerial capabilities, all of which will benefit the Group going forward.