Safilo Group S.p.a. · MIL:SFL
Safilo — Q3 2024 Earnings Presentation
21 slides from Safilo's earnings presentation, Nov 7, 2024
Slide 1: Q3/9M 2024 Trading Update
Q3/9M 2024 TRADING UPDATE NOVEMBER 7, 2024
Slide 2: Disclaimer
// 2 DISCLAIMER This presentation may contain forward looking statements based on current expectations and projects of the Group in relation to future events. Due to their specific nature, these statements are subject to inherent risks and uncertainties, as they depend on certain circumstances and f
Slide 3: CEO quote on Q3 performance
// 3 “In July and August, sales performance continued to be affected by a soft summer season characterized by uncertainties in various key markets. In September, the business showed a recovery, particularly in Europe, where the launch of our new collections had a promising start to order collection.
Slide 4: Q3 Highlights
// 4 Q3 HIGHLIGHTS • Lingering soft trends in North America and Asia, while Europe was more resilient • Structural growth of Gross Margin driving improvement in operating performance • Higher free cash flow generation thanks to effective WC management
Slide 5: Sales Performance
// 5 S A L E S P E R F O R M A N C E 9M 2024 Q3 2024 757.4 €M 225.4 €M -3.5% reported -4.1% reported -2.7% @cFX -3.4% @cFX weather conditions • Ex Jimmy Choo, flattish total sales performance Q3/YTD • Carrera, David Beckham, Tommy Hilfiger, and Marc Jacobs, outperforming; Polaroid and other brands p
Slide 6: Europe
// 6 EUROPE 9M 2024 Q3 2024 324.2 €M 85.1 €M +1.0% reported -0.3% reported +2.2% @cFX -1.4% @cFX • Ex Jimmy Choo, Europe up low/mid single digit in Q3/YTD • Solid prescription frames business in independent optician stores and chains, while trends in sunglasses remaining lacklustre • Positive moment
Slide 7: North America
// 7 NORTH AMERICA 9M 2024 Q3 2024 321.4 €M 103.7 €M -5.8% reported -5.3% reported -5.4% @cFX -4.3% @cFX • Ex Jimmy Choo, North America down low-single digit in Q3/YTD • Positive wholesale business, while sports channels still subdued and DTC decelerating at the end of the quarter • Carrera, David B
Slide 8: Asia & Pacific
// 8 ASIA & PACIFIC 9M 2024 Q3 2024 40.0 €M 13.5 €M -8.7% reported -11.0% reported -7.8% @cFX -12.0% @cFX • In Q3, sales in China weakened, but feedback at the Beijing eyewear fair in September was encouraging • Polaroid, Marc Jacobs and Carrera our key positives in Q3
Slide 9: Rest of the World
// 9 REST OF THE WORLD 9M 2024 Q3 2024 71.8 €M 23.0 €M -9.3% reported -7.1% reported -8.1% @cFX -1.0% @cFX weather conditions • In Q3, soft trends persisted in Latam, while IMEA markets were more resilient • BOSS, David Beckham and Tommy Hilfiger our key positives
Slide 10: Economic Performance: Gross Margin
// 10 E C O N O M I C P E R F O R M A N C E Gross Margin 9M 2024 Q3 2024 59.7% 59.1% +120 bps +140 bps weather conditions • Growth of gross margin driven by structural efficiency of the new industrial set-up • Still positive price/mix effect
Slide 11: Economic Performance: Adj. EBITDA Margin
// 11 E C O N O M I C P E R F O R M A N C E Adj.1EBITDA Margin 9M 2024 Q3 2024 10.0% 7.9% +40 bps +20 bps weather conditions • Normalization of IT investments and a disciplined approach to spending countering unfavourable operating leverage • In Q3, marketing expenses slightly down vs YA, but signif
Slide 12: Financial Performance: Free Cash Flow and Net Debt
// 12 F I N A N C I A L P E R F O R M A N C E Q3 Free Cash Flow Net Debt as at Sept. 30 + 1 6 . 9 €M 9 6 . 1 €M vs +11.9*€M in Q3 ‘23 vs 100.4 €M at June 30, 2024 56.6 €M pre IFRS-16 vs 62.6 €M at June 30, 2024 weather conditions • Tight control over working capital, largely driven by effective inve
Slide 13: Q&A
Q&A
Slide 14: Appendices
nN of ee) : SEE THE WORLD AT ITS BEST.
Slide 15: Notes to the Presentation
// 15 NOTES TO THE PRESENTATION 1 In the first 9 months of 2024, the adjusted economic results excluded non-recurring costs for Euro 8.5 million at the EBITDA level mainly due to the costs related to a terminated license agreement and some special projects. In Q3 2024, the adjusted EBITDA excluded n
Slide 16: Sales by Geographical Area
// 16 SALES BY GEOGRAPHICAL AREA Change at Change at (Euro million) 9M 2024 % 9M 2023 % current forex constant forex North America 321.4 42.4 341.1 43.4 -5.8% -5.4% Europe 324.2 42.8 321.1 40.9 +1.0% +2.2% Asia Pacific 40.0 5.3 43.8 5.6 -8.7% -7.8% Rest of the world 71.8 9.5 79.2 10.1 -9.3% -8.1% To
Slide 17: Quarterly Sales by Geographical Area
// 17 QUARTERLY SALES BY GEOGRAPHICAL AREA Change at Change at (Euro million) Q3 2024 % Q3 2023 % current forex constant forex North America 103.7 46.0 109.6 46.6 -5.3% -4.3% Europe 85.1 37.8 85.4 36.3 -0.3% -1.4% Asia Pacific 13.5 6.0 15.2 6.5 -11.0% -12.0% Rest of the world 23.0 10.2 24.8 10.5 -7.
Slide 18: 9M 2024 Trading Update
// 18 9M 2024 TRADING UPDATE % on % on % Change Key Economic highlights - in Euro million 9M 2024 net sales 9M 2023 net sales 2024 vs 2023 Net sales 757.4 785.1 -3.5% Performance at cFX -2.7% Gross Profit 452.5 59.7% 451.0 57.4% +0.3% 1 -1.4% Adjusted Gross Profit 452.5 59.7% 459.1 58.5% EBITDA 66.9
Slide 19: Q3 2024 Trading Update
// 19 Q3 2024 TRADING UPDATE % on % on % Change Key Economic highlights - in Euro million Q3 2024 net sales Q3 2023 net sales 2024 vs 2023 Net sales 225.4 235.0 -4.1% Performance at cFX -3.4% Gross Profit 133.3 59.1% 132.4 56.3% +0.7% Adjusted 1 Gross Profit 133.3 59.1% 135.5 57.7% -1.6% EBITDA 16.3
Slide 20: Exchange Rates
// 20 EXCHANGE RATES (Appreciation)/ (Appreciation)/ As of Average for Depreciation Depreciation September 30, December 31, Currency Code % 9M 2024 9M 2023 % 2024 2023 US Dollar USD 1,1196 1,1050 1,3% 1,0871 1,0833 0,4% Hong-Kong Dollar HKD 8,6933 8,6314 0,7% 8,4925 8,4860 0,1% Swiss Franc CHF 0,943
Slide 21: Strong Brand Portfolio
// 21 STRONG BRAND PORTFOLIO TO REACH A BROAD AUDIENCE OF TARGET CONSUMERS • The right offer for all distribution channels, for all customer types • Centered on contemporary segment where the highest demand of eyewear is • Broad based offer across genders, ages, categories & price segments • Appeali