CHARENTON-LE-PONT, France, January 25 /PRNewswire-FirstCall/ -- Essilor, the world leader in ophthalmic optics, has announced consolidated revenue of EUR2,690 million for 2006, an 11% increase over the previous year.
In a favorable environment for ophthalmic lenses, Essilor benefited considerably from worldwide demand for Varilux Physio(R), its mass-market progressive lens launched at the beginning of the year, and increased its market share in every region.
As a result, the Company has confirmed that 2006 will see further growth in both earnings and margins.
Consolidated revenue EUR millions 2006 2005 Reported % change Contributions Currency change like-for-like from effect acquisitions Consolidated revenue at December 31 2,690.0 2,424.3 11.0% 8.1% 3.2% - 0.3% Consolidated fourth quarter 667.3 621.2 7.4% 8.8% 3.1% - 4.5% revenue Growth was driven by:
- An 8.1% like-for-like increase that was well balanced between the first half (8.7%) and the second (7.5%). It reflected:
- Around a 7% increase in unit sales.
- An improvement in the product mix, resulting from the success of Varilux Physio(R) and solid growth in sales of progressive lenses, plastic lenses made of very high index and polycarbonate materials, and high-value added anti-reflective and photochromic lenses.
- A slightly negative 0.3% currency effect due to a decline in the yen, the US dollar and the Australian dollar against the euro.
- A 3.2% contribution from companies acquired in 2005 and 2006-mainly in the United States, India and Taiwan-which added an aggregate EUR77.6 million to consolidated revenue. During the year, Essilor made 22 acquisitions, of which 14 in the United States.
Consolidated revenue by region EUR millions Dec. 31, 2006 Dec. 31, 2005 Reported % change change like-for-like Europe 1,207.9 1,120.4 7.8% 6.6% North America 1,156.7 1,025.1 12.8% 9.4% Asia-Pacific 233.0 202.1 15.3% 8.7% Latin America 92.4 76.7 20.4% 10.4% Total 2,690.0 2,424.3 11.0% 8.1% - A return to sustained growth in Europe
2006 was a good year in Europe, led by the launch of Varilux Physio(R) across the Essilor network. France, Germany, Spain, Italy and the Eastern European countries turned in the best results for the year.
- Strong momentum in North America
In the United States, growth was strong throughout the year, especially in networks that sell to opticians and independent laboratories. Canada also had a very good year.
- Increased demand in the rest of the world
In Asia, growth was led by a strong performance in China and India and a solid recovery in Australia. In Japan, where the market was stable, Nikon-Essilor increased its market share despite only modest sales growth. In Latin America, sales in Argentina rose sharply.
Three Acquisitions Essilor extends its international network of wholesale distributors with an equity investment in Novacel
Following the acquisition of Nassau in the United States and LTL in Italy, Essilor has further extended its international network of wholesale distributors by acquiring an equity stake in France’s Novacel.
The partnership, which is totally independent of the existing Essilor and BBGR networks, will enable Essilor to market alternative product and service offerings, while ensuring the long-term viability of Novacel, a recognized market player.
Founded in 1994, Novacel distributes a full range of lenses under its own brands in France and other European markets and operates a prescription laboratory. The company, which has 280 employees, reported 2006 consolidated revenue of approximately EUR39 million. The current Novacel management team will remain in place and continue to operate the company independently.
Two prescription lens laboratories in the United States
In the United States, subsidiary Essilor of America has acquired two new prescription laboratories that distribute Varilux(R) products.
- Late 2006: Peninsula Optical Lab Inc. in Seattle, Washington, with $5.5 million in revenue and 40 employees.
- Early 2007: Beitler McKee Optical Company in Pittsburgh, Pennsylvania, with $13 million in revenue and 78 employees.
A conference call will be held today at 10 a.m. CET. The number to dial is: +44-(0)161-601-8920 The conference will be available for later listening at: http://hosting.3sens.com/Essilor/20070125-A60279DB/en Next financial announcement Results for 2006 will be released on March 8, 2007
Essilor International is the world leader in ophthalmic optical products, offering a wide range of lenses under the flagship Varilux(R), Crizal(R), Airwear(R) and Essilor(R) brands to correct myopia, hyperopia, presbyopia and astigmatism. Essilor operates worldwide through 16 production sites, 215 lens finishing laboratories and local distribution networks. The Essilor share trades on the Euronext Paris market and is included in the CAC 40 index. Codes and symbols: ISIN: FR 0000121667; Reuters: ESSI.PA; Bloomberg: EF FP.
Investor Relations and Financial Communications Veronique Gillet Phone: +33-(0)1-49-77-42-16
Essilor
CONTACT: Investor Relations and Financial Communications, VeroniqueGillet, Phone: +33-(0)1-49-77-42-16
