EssilorLuxottica: a new leadership duo and objectives confirmed at Capital Market Day in Milan, Company news
At the EssilorLuxottica technology showroom in Milan, the analysts invited to the group’s investor day met this Wednesday for the first time since 2019. Due to the health crisis, the capital market day of the world leader in optics had not been able to take place face-to-face until then.
The opportunity, also, for operators, to meet the new tandem at the head of the group since the death last June of Luxottica, Leonardo del Vecchio: Fransesco Milleri, CEO, and Paul du Saillant, Deputy CEO . The Franco-Italian management appeared united and confident: “We are a very complete actor, welcomes the CEO, in a naturally growing market. The aging of the population and its increase, in fact, the demand for optical products.
No details on GrandVision integration synergies
As expected, management did not provide details on the synergies created through the integration of the distributor GrandVision. In the absence of figures and although the audience tried to extract some, the subject was nevertheless more than discussed over the course of the presentations and, in its note published this Thursday morning, the firm Oddo BHF retains that the infrastructure ” production and distribution and [la] computing spine [du groupe] are now well unified “.
Paul du Saillant summarizes: “ Onboarding is a daunting task, but we got it right “. The fully integrated value chain, from the production of lenses, frames and cases to the distribution of the products, also allows the manufacturer of Ray-Ban glasses to progress on the circularity of its production, in particular by recycling unused materials. at certain stages of the process in the following ones.
The trend remains strong in North America
No additional details, either, as to the financial prospects of the company. The objective of 27 to 28 billion euros in turnover and an operating profit of 19 to 20% of sales by 2026 has been confirmed (compared to 21.5 billion euros and 16% in 2021, in pro forma data). As for the main growth levers, in the medium term, they are based on three pillars, specifies the financial director Stefano Grassi: solutions for myopia outside of China, smart glasses Ray-Ban in partnership with Meta and e-commerce. .
Analysts’ questions focused in particular on the group’s situation in the United States, since the results for the first half in July showed a deceleration in sales across the Atlantic. The trend would still be for growth in the third quarter, reassures EssilorLuxottica and, with, in 2021, 43% of turnover generated in dollars, compared to 39% of related costs, the company “Should benefit [de l’effet positif] exchange rates in 2022, conversion beyond the simple effect », specifies Oddo BHF.
For investment bank Stifel, the event will have a positive impact on the general perception of EssilorLuxottica [pour les investisseurs, qui découvrent que le groupe] tire departed from its stature, especially in the digital space “. The Leonardo platform, for example, introduced in 2021, relies on the expertise of the group and specialists in the sector to offer training modules on optics to employees or customers. Investment expenditure in digital technology also represented 20% of total expenditure in this area in 2021, in proforma data.