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EssilorLuxottica Publish Full Year 2022 Financial Results

A year of records in sales, operating and net profit with all regions and segments contributing:

1. Steady progress on all social and sustainability initiatives
2. Group’s sales at Euro 24.5 billion in FY 2022, up 13.9% vs 2021 in comparable terms
3. Adjusted operating margin at 16.8% in FY 2022, up 70bps vs pro forma FY 2021
4. Group’s comparable-store sales up 7.7% in FY 2022, ex-GrandVision outperformed at +9.3%
5. Investment in capex and M&A to strengthen the business model
6. Free cash flow at Euro 2.26 billion in FY 2022
7. Dividend proposed at Euro 3.23 per share, up 29% vs FY 2021
8. Comparable revenue up 9.4% in Q4 2022, +3.9% at constant exchange rates
9. Appointment of Jean-Luc Biamonti as lead director

Francesco Milleri, Chairman and CEO, and Paul du Saillant, Deputy CEO at EssilorLuxottica commented: “From record sales of 24.5 billion to groundbreaking product innovations, EssilorLuxottica delivered on the promise of a strong, unified company in 2022. Our late Chairman, Leonardo Del Vecchio, would have been proud to see the new heights we reached in every geography and the growing bonds between our people and customers. It is with these deep connections in mind that our thoughts today go to our employees and partners in Turkey, and all those impacted by the devastating earthquakes in Turkey and Syria.

In 2022, we strengthened our open, collaborative business model, while completing important acquisitions such as Walman in North America and Shamir in Israel, and continuing to invest in quality eyecare and eyewear for the benefit of the entire market. At the same time, we continued to showcase our unique innovation capability, through new sustainable collections and the ongoing deployment of new lens products and categories. In the face of ongoing macroeconomic uncertainties, we remained focused on our strategic levers: the vertical integration of our business, the embedding of big data in any corporate decision, our global footprint, and the deployment of our sustainability program Eyes on the Planet. In 2022, we also confirmed our long-term commitment to our mission by launching the largest vision care foundation in the world. All these key factors, combined with our nearly 200,000 talented employees, will enable us to achieve continued growth in the years ahead.”

European divestment
On March 2, 2022, EssilorLuxottica, GrandVision and Vision Group, one of the largest distribution networks for Italian opticians and a retail player under the VisionOttica banner, announced that the companies had completed the transaction for Vision Group to acquire the VistaSì chain in Italy, including the brand and all the 99 stores, and 75 GrandVision stores in the country.

On April 4, 2022, EssilorLuxottica, GrandVision and the Optic Retail International Group BENE, a member of MPG Austria (“ORIG/MPG”), announced that the companies had completed the transaction for ORIG/MPG to acquire 142 EyeWish stores in the Netherlands and 35 GrandOptical stores in Belgium. Both transactions follow the commitments agreed upon with the European Commission.

On March 23, 2021, as part of the acquisition of GrandVision by EssilorLuxottica. All the parties confirmed that the European European divestment

On March 2, 2022, EssilorLuxottica, GrandVision and Vision Group, one of the largest distribution networks for Italian opticians and a retail player under the VisionOttica banner, announced that the companies had completed the transaction for Vision Group to acquire the VistaSì chain in Italy, including the brand and all the 99 stores, and 75 GrandVision stores in the country.

On April 4, 2022, EssilorLuxottica, GrandVision and the Optic Retail International Group BENE, a member of MPG Austria (“ORIG/MPG”), announced that the companies had completed the transaction for ORIG/MPG to acquire 142 EyeWish stores in the Netherlands and 35 Grand Optical stores in Belgium.

Recent trends Some of the trends that emerged during 2022 are expected to persist and impact the global economy as well as the Company’s performance in 2023. The progressive exit from the COVID-19 crisis, thanks to the rising vaccination levels, is not expected to be derailed by new potential outbreaks of variants in 2023, while differences might remain among the regions in terms of number of cases and healthcare policies. Inflation surged in 2022, following supply-chain disruptions from COVID-19 lockdowns as well as the Russia Ukraine conflict, and forced central banks to tighten their monetary policies, putting an end to a long period of monetary easing. These macro-economic dynamics are expected to persist in 2023. A devastating earthquake hit Turkey and Syria on February 6, 2023. EssilorLuxottica, that operates in Turkey through its retail network and wholesale subsidiaries, is providing direct support to its impacted colleagues on the ground. The Company is also assessing the best way to support the wider population. Overall sales in the country represent approximately 1% of consolidated revenue in 2022.

Outlook
The Company confirms its target of mid-single-digit annual revenue growth from 2022 to 2026 at constant exchange rates (based on 2021 pro forma revenue) and expects to achieve an adjusted operating profit as a percentage of revenue in the range of 19-20% by the end of that period.

Check back over how EssilorLuxottica started the fiscal year in Q1’22.