Essilor H1 Profit Surges

Essilor International ESLOY reported a strong rise in its net profit in the first half. The Charenton-le-Pont, France-based company posted a net profit of EUR699 million euros ($923.6 million) for the first six months, compared to EUR310 million. Its revenue climbed 7.9% to EUR2.78 billion versus EUR2.58 billion, while revenue jumped 12.6% excluding the currency effect. The company's adjusted profit surged 3.5% to EUR325 million, while adjusted earnings per share gained 3.4% to EUR1.54. Free cash flow surged 43.3% to EUR 245 million from EUR171 million. Like-for-like sales at the lenses & optical instruments division surged 3.6%, with like-for-like sales in North America rising 4.1% and like-for-like sales dropping 0.5% in Europe. In the Asia/Pacific/Middle East/Africa region, like-for-like sales jumped 8.5%, while in Latin America, like-for-like sales climbed 7.9%. Like-for-like sales at the equipment division dropped 3% in the first half, while like-for-like sales at the sunglasses & readers division declined 1.4%. Essilor projects full-year revenue, excluding the currency effect, to rise over 13%. Hubert Sagnières, Chairman and Chief Executive Officer of Essilor said, "The Group's results reflect major progress in its mission to deliver better visual health to as many people as possible. Our focus on innovation combined with assertive consumer communication campaigns and a new operational organization have started to pay off with independent eyecare professionals and key accounts.” Essilor shares fell 1.02% to close at $50.11 yesterday.