EssilorLuxottica Reports First-Half 2020 Results
EssilorLuxottica reported a 29% revenue drop in the first half of 2020 due to the pandemic, but maintained a positive adjusted operating profit and strong cash position.
EssilorLuxottica announced on July 31, 2020, that its revenue decreased by 29% in the first half of 2020 compared to the same period last year. The decline was primarily attributed to the impact of the COVID-19 pandemic, which led to restrictions affecting the company's global retail operations and production.
Despite the revenue decrease, the company managed to maintain a positive adjusted operating profit and ended the period with a strong liquidity position, holding close to €8 billion in cash and short-term investments. This was achieved through prudent financial management and positive free cash flow generation in the second quarter.
The company observed a trough in revenue in April, followed by a marked sequential recovery in May and June across all key operating segments and geographical areas. The recovery in lenses was strong, supported by prescriptions and new product launches. Retail operations, encompassing both optical and sunwear, also restarted promptly, particularly in North America.
EssilorLuxottica highlighted an acceleration in digital sales, which grew by 43% in the first half and 68% in the second quarter. The company also established a €130 million fund to support its employees and their families impacted by the pandemic.
Looking ahead, the company expressed cautious optimism for the remainder of the year, citing the resilient nature of vision needs. EssilorLuxottica plans to continue accelerating its integration efforts, boosting digitalization, and launching new product innovations.