Essilorluxottica Sa · EURONEXT:EL
Essilorluxottica Sa — Q2 2023 Earnings Presentation
20 slides from Essilorluxottica Sa's earnings presentation, Jul 26, 2023
Slide 1: Q2/H1 2023 Results
Q2/H1 2023 Results July 25, 2023
Slide 2: Financial Highlights
Financial Highlights • Group’s revenue up 8.0% in Q2 and 8.2% in H1 at constant exchange rates • EMEA double-digit up in Q2, China rebounding strongly, North America positive • Retail in EMEA as a key driver, with the integration accelerating • Stellest more than doubling in H1, Varilux XR successfu
Slide 3: Operational Highlights
Operational Highlights • Deep innovation and robust end-to-end organization at the core • Strong investments in people retention and talent addition • New global integrated facilities in Mexico and Thailand starting operations soon, optimization of lab network ongoing • R&D teams unlocking new disru
Slide 4: Revenue Growth
Revenue Growth Constant currency Current currency Q2 2023 vs 2022 Group Revenue +8.0% +4.9% H1 2023 vs 2022 Group Revenue +8.2% +7.1% Q2/H1 2023 Results 4
Slide 5: H1 2023 Results
2023 NEW RAY-BAN AVIATOR REVERSE
Slide 6: Q2 revenue by segment 2023 vs 2022
Q2 revenue by segment 2023 vs 2022 Change at constant Change at current € million Q2 2023 Q2 2022 exchange rates exchange rates Professional Solutions 3,208 3,057 +8.2% +4.9% Direct To Consumer 3,491 3,330 +7.8% +4.8% EssilorLuxottica 6,699 6,387 +8.0% +4.9% Q2/H1 2023 Results 6
Slide 7: Q2 revenue by region 2023 vs 2022
Q2 revenue by region 2023 vs 2022 Change at constant Change at current € million Q2 2023 Q2 2022 exchange rates exchange rates North America 3,029 3,026 +2.3% +0.1% EMEA 2,523 2,347 +10.6% +7.5% Asia-Pacific 769 666 +23.9% +15.5% Latin America 378 348 +9.3% +8.4% EssilorLuxottica 6,699 6,387 +8.0% +
Slide 8: Q2/H1 2023 Results
NEW RAY-BAN AVIATOR REVERSE
Slide 9: H1 revenue by segment 2023 vs 2022
H1 revenue by segment 2023 vs 2022 Change at constant Change at current € million H1 2023 H1 2022 exchange rates exchange rates Professional Solutions 6,234 5,837 +7.9% +6.8% Direct To Consumer 6,616 6,157 +8.5% +7.5% EssilorLuxottica 12,851 11,994 +8.2% +7.1% Q2/H1 2023 Results 9
Slide 10: H1 revenue by region 2023 vs 2022
H1 revenue by region 2023 vs 2022 Change at constant Change at current € million H1 2023 H1 2022 exchange rates exchange rates North America 5,888 5,591 +4.5% +5.3% EMEA 4,717 4,401 +9.8% +7.2% Asia-Pacific 1,519 1,351 +17.9% +12.4% Latin America 727 650 +10.3% +11.8% EssilorLuxottica 12,851 11,994
Slide 11: Q2/H1 2023 Results
VITTORIA CERETT! H RAY-BAN — Peyrbon NEW RAY-BAN WAYFARER REVERSE
Slide 12: Store Count on June 30, 2023
Store Count on June 30, 2023 North Asia- Latin Corporate Franchising Total EMEA America Pacific America Stores & Other Storecount Sunglass Hut 1,686 609 314 404 3,013 199 3,212 LensCrafters 1,014 85 1,099 5 1,104 Vision Express 859 859 142 1,001 Apollo 680 680 222 902 Target Optical 569 569 569 MasV
Slide 13: Q2/H1 2023 Results
NEW RAY-BAN REVERSE COLLECTION
Slide 14: North America revenue +2.3% in Q2
North America revenue +2.3% in Q2 PROFESSIONAL SOLUTIONS • Up low-single digit, thanks to lenses, prescription frames and contact lenses • Varilux and Crizal driving lenses, frames supported by luxury and Ray-Ban • Solid independent ECPs and key accounts, while softer sport channel and department st
Slide 15: EMEA revenue +10.6% in Q2
EMEA revenue +10.6% in Q2 PROFESSIONAL SOLUTIONS • Up high-single digit, driven by France, Italy and Spain • Sun category fueled by luxury licenses, with Prada, D&G and Versace outpacing • New Varilux XR series off to a promising start DIRECT TO CONSUMER • Up double digits, with strong contribution
Slide 16: Asia-Pacific revenue +23.9% in Q2
Asia-Pacific revenue +23.9% in Q2 PROFESSIONAL SOLUTIONS • Up by more than one fourth, with China as primary driver • Stellest lenses more than doubling sales in China • India, Japan and South Korea delivering healthy growth DIRECT TO CONSUMER • Up double digits, with similar comparable-store sales
Slide 17: Latin America revenue +9.3% in Q2
Latin America revenue +9.3% in Q2 PROFESSIONAL SOLUTIONS • Up high-single digit, with both Brazil and Mexico continuing to grow • Strong branded lens portfolio, supported by Varilux, Eyezen and Kodak • Frames posting positive results DIRECT TO CONSUMER • Up double digits, with positive trends in bot
Slide 18: Q2/H1 2023 Results
Q2/H1 2023 Results
Slide 19: Adjusted Statement of Profit or Loss
Adjusted Statement of Profit or Loss € million H1 2023 H1 2022 Constant ER Current ER Revenue 12,851 11,994 +8.2% +7.1% Cost of sales (4,607) (4,265) +8.9% +8.0% Gross profit 8,243 7,729 +7.9% +6.7% Margin % 64.4% 64.2% 64.1% Total operating expenses (5,896) (5,528) +7.5% +6.7% OPERATING PROFIT 2,34
Slide 20: Free Cash Flow & Net Debt
Free Cash Flow & Net Debt • Free cash flow at Euro 954 million, +5% versus prior year • Capex at Euro 751 million • Net Debt at Euro 10.06 billion on 30 Jun 2023 (including lease liabilities of Euro 3.18 billion) • Net Debt / EBITDA LTM at 1.6x • Cash & Cash Equivalents at Euro 1.69 billion Q2/H1 20