Safilo Group S.p.a. · MIL:SFL
Safilo — Q1 2024 Earnings Presentation
21 slides from Safilo's earnings presentation, May 7, 2024
Slide 1: Q1 2024 Trading Update
Q1 2024 TRADING UPDATE MAY 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 Q1 2024 performance
// 3 “In a business environment which is still complex and uncertain, it was again a positive start to the year for our European business, where Carrera and David Beckham kept shining, while North America was affected by a subdued winter season for our sports business and a wholesale eyewear market
Slide 4: Total Sales Performance
// 4 TOTAL SALES PERFORMANCE Q1 2024 TRADING UPDATE Q1 2024 277.2 €M -3. 5% reported, -1.8% @cFX (including a reduction in sales resulting from the Jimmy Choo phase-out)
Slide 5: Performance in Europe
// 5 PERFORMANCE IN EUROPE Q1 2024 TRADING UPDATE Q1 2024 125.3 €M + 3. 0% reported, +5.8%@cFX France our most dynamic market. Very positive IPP channel in Germany and ongoing business progress in Poland and Turkey Carrera and David Beckham outperforming brands, up double digits Promising launch of
Slide 6: Performance in North America
// 6 PERFORMANCE IN NORTH AMERICA Q1 2024 TRADING UPDATE Q1 2024 114.5 €M -8 . 2% reported, -7.2%@cFX Subdued winter season hitting Smith’s business in physical sports shops Still weak market in the contemporary sunglass segment, and Jimmy Choo phase-out Blenders and Smith’s DTC business very positi
Slide 7: Performance in Asia Pacific
// 7 PERFORMANCE IN ASIA PACIFIC Q1 2024 TRADING UPDATE Q1 2024 11.9 €M -1 . 1% reported, +2.3%@cFX Positive performance in China, also supported by good results at the Shanghai fair held in March Smith continuing to outperform in Australia
Slide 8: Performance in Rest of World
// 8 PERFORMANCE IN REST OF WORLD Q1 2024 TRADING UPDATE Q1 2024 25.6 €M -11 . 3% reported, -12.7%@cFX Different timing of some deliveries in Middle East and soft travel retail business in Latin America Carrera and Polaroid making nice progress in India
Slide 9: Economic Performance: Gross Profit and Margin
// 9 ECONOMIC PERFORMANCE Q1 2024 TRADING UPDATE Q1 2024 GROSS PROFIT 166.2 €M, -1.0% GROSS MARGIN 60.0%, +160 bps Higher production efficiency and lower D&A resulting from 2023 industrial restructuring Positive pricing and channel mix offsetting dilutive effect of phase-out sales
Slide 10: Economic Performance: Adjusted EBITDA
// 10 ECONOMIC PERFORMANCE Q1 2024 TRADING UPDATE Q1 2024 ADJ. 1 EBITDA 32.0 €M, -1.3% ADJ. 1 EBITDA MARGIN 11.5%, +20 bps Normalization of IT and marketing investments Operating leverage still slightly negative
Slide 11: Financial Performance: Group Net Debt
// 11 FINANCIAL PERFORMANCE Q1 2024 TRADING UPDATE December 31, 2023 March 31, 2024 GROUP NET DEBT 82.7 81.3 Pre IFRS-16 43.7 41.8 Positive cash flow generation driven by a solid operating performance and a lower absorption from net working capital
Slide 12: Early renewal of Marc Jacobs Eyewear
// 12 SECURING OUR LICENSE BRAND PORTFOLIO Q1 2024 TRADING UPDATE Early renewal of MARC JACOBS EYEWEAR
Slide 13: Perpetual license for Eyewear by David Beckham
// 13 SECURING OUR LICENSE BRAND PORTFOLIO Q1 2024 TRADING UPDATE Perpetual license for EYEWEAR BY DAVID BECKHAM
Slide 14: Blenders Eyewear
BLENDERSEYEWEAR.COM
Slide 15: Q&A
Q&A
Slide 16: Appendices
Appendices
Slide 17: Notes to the Presentation
// 17 NOTES TO THE PRESENTATION 1 In Q1 2024, the adjusted EBITDA excludes non-recurring charges for Euro 3.9 million mainly due to the potential costs related to a terminated license agreement. In Q1 2023, the adjusted EBITDA excludes non-recurring costs for Euro 3.1 million related to some special
Slide 18: Q1 2024 Net Sales by Geography
// 18 Q1 2024 NET SALES BY GEOGRAPHY Change at Change at (Euro million) Q1 2024 % Q1 2023 % current forex constant forex North America 114.5 41.3 124.7 43.4 -8.2% -7.2% Europe 125.3 45.2 121.6 42.3 +3.0% +5.8% Asia Pacific 11.9 4.3 12.0 4.2 -1.1% +2.3% Rest of the world 25.6 9.2 28.8 10.0 -11.3% -12
Slide 19: Q1 2024 income statement summary
// 19 Q1 2024 TRADING UPDATE % on % on (Euro million) Q1 2024 net sales Q1 2023 net sales % Change Net sales 277.2 287.2 -3.5% Performance at constant exchange rates -1.8% Gross Profit 166.2 60.0% 167.8 58.4% -1.0% EBITDA 28.1 10.1% 29.3 10.2% -4.0% Adjusted 1 EBITDA 32.0 11.5% 32.4 11.3% -1.3% IFRS
Slide 20: Exchange Rates
// 20 EXCHANGE RATES (Appreciation)/ (Appreciation)/ As of Average for Depreciation Depreciation March 31, December 31, Currency Code % Q1 2024 Q1 2023 % 2024 2023 US Dollar USD 1.0811 1.1050 -2.2% 1.0858 1.0730 1.2% Hong-Kong Dollar HKD 8.4594 8.6314 -2.0% 8.4912 8.4106 1.0% Swiss Franc CHF 0.9766
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