Safilo Group S.p.a. · MIL:SFL
Safilo — FY 2024 Earnings Presentation
36 slides from Safilo's earnings presentation, Mar 11, 2025
Slide 1: FY 2024 Results
FY 2024 RESULTS MARCH 11, 2025
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 2024
// 3 “2024 was a year marked by a complex macroeconomic context, which affected business and consumer confidence, influencing demand dynamics in various sectors, including eyewear. In the face of market challenges, we proved our resilience and flexibility, consolidating our competitive edge through
Slide 4: 2024 Highlights
// 4 2024 HIGHLIGHTS • Total sales -2.3% @cFX, with continued sales growth in Europe mitigating challenges in North America and the conclusion of the Jimmy Choo license • Ex Jimmy Choo, sales slightly up @cFX, driven by the key growth drivers of the year, Carrera, David Beckham, Tommy Hilfiger and C
Slide 5: Home Brand Highlights: Carrera
// 5 HOME BRAND HIGHLIGHTS • Carrera Woman and Carrera Ducati key drivers of growth • Strong performance of both optical and sunglasess • Europe and NA both growing double digits. US now first market
Slide 6: Home Brand Highlights: Polaroid
// 6 HOME BRAND HIGHLIGHTS • Polaroid closing slightly soft due to delayed sun season in Europe • Positive exit to the year thanks to good progress in optical business
Slide 7: Home Brand Highlights: Blenders
// 7 HOME BRAND HIGHLIGHTS • Blenders DtC channel slowed down due to challenging comps in Q4 • Progress in wholesale development
Slide 8: Home Brand Highlights: Smith
// 8 HOME BRAND HIGHLIGHTS • Smith affected by low winter pre-orders and soft bike business in the summer • Strong DtC channel and recovery in Q4 driven by positive start to the ‘25 ski season
Slide 9: Home Brand Highlights: David Beckham
// 9 HOME BRAND HIGHLIGHTS • David Beckham’s high double-digit growth driven by distribution expansion • Balanced mix between optical and sunglasses • Europe, NA and Middle East, all up high double digits
Slide 10: 2024 Progress on Sustainability
// 10 2024 PROGRESS ON SUSTANABILITY • Scope 1 and 2 emissions ca.-19% vs 2023 • Share of new collections made with recycled or bio-based materials increased to ca. 23% in 2024 vs ca.17% in 2023 • Scope 3 emissions ca.-5% vs 2023 thanks to upstream value chain improvement initiatives • Commitment to
Slide 11: Sales Performance
// 11 S A L E S P E R F O R M A N C E FY 2024 Q4 2024 993.2 €M 235.8 €M -3.1% reported -1.6% reported -2.3% @cFX -1.1% @cFX • Ex Jimmy Choo, FY/Q4 sales slightly up /ca.+2% • European opticians and chains, our best channels • Prescription frames solidly up everywhere, outperforming sunglasses • Onli
Slide 12: Europe
// 12 EUROPE FY 2024 Q4 2024 414.2 €M 90.1 €M +0.6% reported -0.7% reported +1.6% @cFX -0.1% @cFX • Ex Jimmy Choo, FY/Q4 sales in Europe up MSD/ca.+3% • Solid European performance with France leading and strong growth in Central/Eastern markets • Adoption of You&Safilo BtB platform continued to boos
Slide 13: North America
// 13 NORTH AMERICA FY 2024 Q4 2024 428.7 €M 107.3 €M -5.3% reported -4.1% reported -5.2% @cFX -4.6% @cFX • Ex Jimmy Choo, FY/Q4 sales in NA down low-single digit • An unfavorable sports business context for most of the year, and a cautious wholesale purchasing of sunglasses, were key headwinds • Ca
Slide 14: Asia & Pacific
// 14 ASIA & PACIFIC FY 2024 Q4 2024 58.6 €M 18.6 €M -2.3% reported +14.4% reported -2.1% @cFX +12.9% @cFX • China was the main positive driver in the Asia Pacific region, while Southeast Asian markets faced challenges due to a contraction in distributors sales • Strong reception for new collections
Slide 15: Rest of the World
// 15 REST OF THE WORLD FY 2024 Q4 2024 91.8 €M 19.9 €M -8.3% reported -4.5% reported -5.9% @cFX +2.4% @cFX weather conditions • In Latin America, sales slowed by weak travel retail • Middle East grew, while India decelerated after robust growth in 2023 • Carrera, Tommy Hilfiger and David Beckham, o
Slide 16: Economic Performance: Gross Margin
// 16 E C O N O M I C P E R F O R M A N C E FY 2024 Gross Margin Q4 2024 59.7% 59.5% +100 bps1 Flat weather conditions • Structural efficiencies from revised industrial set-up (as of Q4 2023) • Positive pricing effect vs dilutive phase-out sales • Q4 Gross Margin in line with last year’s strong adju
Slide 17: Economic Performance: Adjusted EBITDA
// 17 E C O N O M I C P E R F O R M A N C E FY 2024 Adj.1 EBITDA Q4 2024 9.4% 7.5% +40 bps +60 bps weather conditions • Normalization of IT investments after ‘22-’23 peaks, the key driver vs some persistent costs inflation • Sustained marketing investments (stable at ca.13% of sales) to drive brand
Slide 18: Economic Performance: Adjusted Net Result
// 18 E C O N O M I C P E R F O R M A N C E FY 2024 Adj.1 NET RESULT 3 4 . 2 €M vs 14.0 €M weather conditions • Net financial charges ca.-15% due to lower interest rates and gross debt • Net result ca.+17%, excluding different dynamics of put/call options on minority interests
Slide 19: Financial Performance: Free Cash Flow and Net Debt
// 19 F I N A N C I A L P E R F O R M A N C E Free Cash Flow Net Debt as at Dec. 31 1 6 . 7 €M vs 29.1€M 8 2 . 7 €M, flat vs 2023 40.3 €M pre IFRS-16 vs 43.7 €M in 2023 weather conditions • Higher Q4 FCF at 18.9 €M vs 13.3€M • FY Cash Flow from operating activities at 76.2 €M vs 47.7€M thanks to car
Slide 20: Looking to 2025
// 20 LOOKING TO 2025… Complex macroeconomic and geopolitical landscape • Intensifying challenges with uncertain business implications We remain focused on… • opportunities to drive a return to revenue growth • continuous margin improvement and consistent cash generation • efficient allocation of re
Slide 21: Looking to 2025: Carrera and Key Markets
// 21 LOOKING TO 2025… • Carrera Woman expansion After a highly successful launch, Carrera Woman remains a major priority • Carrera Sport Collection launch Reaffirming the brand’s bold and authentic identity in sports, to reach the “fashionable in sports” • Strategic focus on key markets Prioritizin
Slide 22: Looking to 2025: Polaroid
// 22 LOOKING TO 2025… • Polaroid as the Official Eyewear Partner of the ATP Tour Bringing it to a global stage, and engaging new customers • Brand Activation at Major Tournaments Strong presence at Mutua Madrid Open, Internazionali BNL d’Italia, and the Swedish Open • Lorenzo Musetti as Brand Ambas
Slide 23: Looking to 2025: David Beckham
// 23 LOOKING TO 2025… • New ADV Campaign A stunning new advertising campaign set in Morocco, reinforcing the brand’s identity with David Beckham at its core • Continued expansion Successful pop-up store in Selfridges London, to be expanded in Manchester and Birmingham • First mono brand store First
Slide 24: Looking to 2025: New Share Buyback Program
// 24 LOOKING TO 2025… New Share Buyback Program for max. 15M shares, equal to ca. 3.6% of the share capital
Slide 25: Q&A
Q&A
Slide 26: Appendices
Appendices
Slide 27: Notes to the Presentation
// 27 NOTES TO THE PRESENTATION 1 In 2024, the adjusted economic results exclude non-recurring costs of Euro 13.2 million at the operating result and EBITDA level mainly due to costs related to a terminated license agreement and some special and restructuring projects. In Q4 2024, adjusted EBITDA ex
Slide 28: Sales by Geographical Area
// 28 SALES BY GEOGRAPHICAL AREA Change at Change at (Euro million) 2024 % 2023 % current forex constant forex North America 428.7 43.2 452.9 44.2 -5.3% -5.2% Europe 414.2 41.7 411.8 40.2 +0.6% +1.6% Asia Pacific 58.6 5.9 59.9 5.8 -2.3% -2.1% Rest of the world 91.8 9.2 100.1 9.8 -8.3% -5.9% Total 99
Slide 29: Quarterly Sales by Geographical Area
// 29 QUARTERLY SALES BY GEOGRAPHICAL AREA Change at Change at Change at Change at (Euro million) Q4 2024 % Q4 2023 % (Euro million) Q3 2024 % Q3 2023 % current forex constant forex current forex constant forex North America 107.3 45.5 111.9 46.7 -4.1% -4.6% North America 103.7 46.0 109.6 46.6 -5.3%
Slide 30: 2024 Income Statement
// 30 2024 INCOME STATEMENT Key economic data (in Euro million) 2024 % 2023 % % Change Net sales 993.2 1,024.7 -3.1% Gross Profit 592.8 59.7% 585.7 57.2% +1.2% Adjusted2 Gross Profit 601.8 58.7% -1.5% EBITDA 79.8 8.0% 62.9 6.1% +27.0% Adjusted2 EBITDA 93.0 9.4% 92.0 9.0% +1.1% Operating result 39.4
Slide 31: Q4 2024 Trading Update
// 31 Q4 2024 TRADING UPDATE Key economic data (in Euro million) Q4 2024 % Q4 2023 % % Change Net sales 235.8 239.6 -1.6% Gross Profit 140.3 59.5% 134.8 56.2% +4.1% Ajusted2 Gross Profit 142.6 59.5% -1.6% EBITDA 12.9 5.5% 4.9 2.0% n.s. Adjusted2 EBITDA 17.6 7.5% 16.5 6.9% +6.3% IFRS 16 impact on EBI
Slide 32: Balance Sheet as of December 31, 2024
// 32 BALANCE SHEET AS OF DECEMBER 31,2024 (in Euro million) December 31, 2024 December 31, 2023 Change Net working capital 256.8 260.0 (3.2) Tangible, Right of Use, and Intangible fixed assets 259.2 230.9 28.3 Goodwill 35.8 33.7 2.1 Other assets / (liabilities), net (41.6) (46.0) 4.4 Net invested c
Slide 33: Working Capital as of December 31, 2024
// 33 WORKING CAPITAL AS OF DECEMBER 31,2024 (in Euro million) December 31, 2024 December 31, 2023 Change Trade receivables 211.9 203.1 8.8 Inventories 210.2 229.0 (18.8) Trade payables (165.3) (172.1) 6.8 Net working capital 256.8 260.0 (3.2) % on net sales 25.9% 25.4%
Slide 34: 2024 Free Cash Flow
// 34 2024 FREE CASH FLOW Free Cash Flow (in Euro million) 2024 2023 Cash Flow from operating activities before change in working capital 62.6 26.2 Change in working capital 13.6 21.5 Cash Flow from operating activities 76.2 47.7 Cash Flow from investment/disinvestment activities (48.9) (8.6) Cash p
Slide 35: Exchange Rates
// 35 EXCHANGE RATES (Appreciation)/ (Appreciation)/ As of Average for Depreciation Depreciation December 31, December 31, Currency Code % 2024 2023 % 2024 2023 US Dollar USD 1.0389 1.1050 -6.0% 1.0824 1.0813 0.1% Hong-Kong Dollar HKD 8.0686 8.6314 -6.5% 8.4454 8.4650 -0.2% Swiss Franc CHF 0.9412 0.
Slide 36: Strong Brand Portfolio
// 36 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