(Alliance News) - Safilo Group Spa reported Thursday that it closed FY 2023 with a loss of EUR24.6 million from a profit of EUR54.2 million in FY 2022.

Adjusted net income, on the other hand, was EUR14.0 million, down sharply from EUR58.3 million in FY 2022, "impacted in particular by the revaluation of the option liability on the shareholding in Blenders, by virtue of the extension of the second and third tranches of the related put and call options," Safilo points out.

In the year, the company continues, "the overall impact of the revaluations of the minority share option liability amounted to a loss of EUR7.9 million, which compared with the profit of EUR31.2 million recorded in 2022. Net financial expenses also increased during the year, from EUR15.5 million to EUR19.2 million, mainly due to higher interest rates."

Revenues amounted to EUR1.02 billion from EUR1.08 billion in the previous year.

Ebitda increases to EUR62.9 million from EUR96.8 million in the previous year while adjusted Ebitda is EUR92.0 million from EUR101.2 million in 2022.

Ebitda is EUR7.7 million from EUR48.5 million in 2022 while adjusted EBIT is EUR49.6 million from EUR53.5 million in the previous year.

As of December 31, 2023, net debt fell to EUR82.7 million from the EUR113.4 million recorded as of December 31, 2022.

Safilo's operating performance, the statement said, was characterized by "two very distinct dynamics." On the one hand, "the significant improvement, in all quarters of the year, of the gross industrial margin, an important result achieved thanks to an effective pricing policy, a more favorable channel mix, the efficiency of some sourcing activities and the drop in transport costs that had most impacted the group in 2022.

On the other hand, "under the industrial margin continued to be negatively impacted by operating leverage, affected by higher personnel costs due to wage inflation, as well as by investments in marketing and IT and digital projects, which management has been pursuing in line with the medium-term Group Business Plan, with the aim of continuing the progressive strengthening of the company's proprietary brands and the strengthening of its IT and digital infrastructure," the company further specifies.

The board of directors, the note further states, did not consider it appropriate to propose the distribution of a dividend at the next shareholders' meeting.

Safilo Group's stock closed Thursday up 0.9 percent to EUR1.18 per share.

By Chiara Bruschi, Alliance News reporter

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