Safilo Group: strong increase in profits following growth in turnover and improved financial management

03/08/2006
New Chief Executive Officer and co-Chief Executive Officer are appointed

 Group’s consolidated turnover: € 605.4 million (+7.8% compared to 2005)
 EBITDA: € 94.7 million (-3.1% compared to 2005)
 Net Profit: € 21.8 million (+ 41.6% compared to 2005)
 Net Debt: € 490 million ( € 479 million at the end of 2005)
 Claudio Gottardi, appointed for co-option to the Board of Directors, is the new Chief Executive Officer
 Massimiliano Tabacchi is appointed co- Chief Executive Officer


Padova, 3rd August 2006 – The Board of Directors of Safilo Group S.p.A. today examined and approved the consolidated results relating to the first six months of 2006 which highlight positive results both in terms of turnover and net profitability. Furthermore the Board, upon the proposal of the Chairman Vittorio Tabacchi, nominated Claudio Gottardi for co-option to the position of member of the Board of Directors until the next Shareholders Meeting, in place of Roberto Vedovotto who resigned on July 31st. The Board of Directors in addition assigned Claudio Gottardi the position of Chief Executive Officer and appointed Massimiliano Tabacchi, already a member of the Board of Directors, as co-Chief Executive Officer

Principal consolidated results

Consolidated sales in the first semester, as previously announced during a recent meeting with investors, reached 605.4 million Euro (compared to the first six months of 2005 +7.8% at current exchange rates, +5.5% at constant exchange rates) thanks to the excellent results achieved above all in America (+16.4%) and Italy (+9.2%). The second quarter (+8% compared to the same period of 2005) once again saw a significant increase in income in America and a recovery in the European market which has, until now, performed less impressively compared to other areas.

Operating profitability is slightly lower with an EBITDA which reached 94.7 million Euro compared to the 97.7 million Euro of the first six months of 2005. The causes of this slowdown are exceptional costs related to the conclusion of the re-financing transaction, and considerable investments in marketing which aim at supporting the expected growth of house brands. These expenses are the primary explanation for the reduction of the quarter’s performance which also shows a slight reduction compared to the second quarter of the previous year (41.8 million Euro compared to 49.2 million Euro in 2005).


The net profit achieved in the semester is extremely positive (+41.6% equal to 21.8 million Euro compared to 15.4 million Euro in 2005) and is largely due also to the lesser impact of financial costs following the significant reduction of the company’s debt.

The Group’s financial position, which has increased slightly compared to the end of 2005 due to the seasonal nature of working capital, however highlights a management of the operating cash flow which is in line with the first half of the previous year.

The detailed data relating to the first six months of 2006 can be found in Annex 1 of this press release.

Meeting with analysts

A conference call will be held this afternoon at 17.00 (CET) with analysts and investors during which the Group’s economic and financial results will be illustrated.
The dial-in number to connect to the conference call is as follows: +39 02 802 09 11.

New structure of the Board of Directors

The Board of Directors, upon the proposal of the Chairman Vittorio Tabacchi, has appointed:
• The new Board of Directors Member Claudio Gottardi, presently the President of Safilo USA, Inc., as Chief Executive Officer;
• The Board of Directors Member and current Chief Operating Officer, Massimiliano Tabacchi, as co- Chief Executive Officer.

An summary of the curricula of the new Chief Executive Officer and the new co-Chief Executive Officer are available in Annex 2 of this press release and on the web site www.safilo.com/ir.

Statement by the Chairman Vittorio Tabacchi

Vittorio Tabacchi, Chairman of Safilo Group, in commenting the results and new appointments to the Group’s top management, stated: “Safilo Group is experiencing a particularly positive phase which is confirmed by the encouraging six-monthly data. Our effective business strategy and ability to successfully address the challenges presented to us by the market are confirmed by our increasing sales and profits which continue to grow substantially. Thanks to the results achieved we are in a position to strengthen our worldwide leadership position in the luxury eyewear sector.

"I am pleased that the Board of Directors has accepted my proposals: Claudio Gottardi and Massimiliano Tabacchi will know how to best propel our company forwards while, at the same time, guaranteeing its continuity and the respect for our corporate values. Safilo Group will benefit from a strong top management with considerable experience in the luxury eyewear, supported at all times by a family which will ensure a stable entrepreneurial base. ”

“They are managers capable of managing our core business, in other words our product, with the expertise to develop relations with our licensors and our clients, and manage production, commercial development and cost control. Claudio Gottardi has carried out with success his role as President and Chief Executive Officer of our subsidiary in the USA and will continue to do so. Massimiliano Tabacchi has been active within Safilo for several years and manages product development.”

“Now that the extraordinary phase of the past five years has been completed - concluded Vittorio Tabacchi - Safilo will dedicate all its energies to its core business. It is for this reason that I am confident that the impressive results announced today with be confirmed and improved in the future”.

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The Safilo Group is leader in premium eyewear and in a leadership position in the sector of prescription, sunglasses, fashion and sports eyewear.
Present on the international market through exclusive distributors and 28 subsidiaries in the principal countries (in U.S.A., Europe and Far East), Safilo distributes its own brand collections Safilo, Carrera, Smith, Oxydo, Blue Bay, as well as licensed branded collections, Alexander McQueen, Bottega Veneta, Boss (from October 2006) Boucheron, Christian Dior, Diesel, 55DSL, Emporio Armani, Giorgio Armani, Gucci, Imatra, Marc Jacobs, Marc by Marc Jacobs (from October 2006), Max Mara, Max&Co. (from 2007), Oliver, Pierre Cardin, Ralph Lauren, Stella McCartney, Valentino, Yves Saint Laurent. In addition the following are exclusively for the American market: Fossil, Juicy Couture, Nine West, Kate Spade, Saks Fifth Avenue, Liz Claiborne and J.Lo by Jennifer Lopez.


Contacts:
Safilo press office
Nicoletta Chinello
Tel. +39 049.69.85.379

Community consulenza nella comunicazione
Tel. +39 0422.416.111 - +39 02.89.40.42.31
Auro Palomba – mob. +39 335.71.78.637
Giuliano Pasini - mob. +39 335.60.85.019
Marco Rubino – mob. +39 335.65.09.552


Last update: 20/07/2010, 11:58