Dow Jones Newswires: EssilorLuxottica warns tough economic climate could weigh in coming year, as revenue falls short

by | Feb 23, 2023 | Stock Market

Corrections & Amplifications This headline was corrected at 0609 GMT because the percentage was misstated as fourteen on year organically. EssilorLuxottica SA said Thursday that inflation and macroeconomic dynamics could affect its performance in the coming year, as revenue growth slowed at the end of 2022, but raised its dividend amid higher profitability.

The Franco-Italian eyecare major
reported 2022 sales of 24.49 billion euros ($25.98 billion), 7.5% higher than the year before at constant currency and adjusted for the integration of Dutch retailer GrandVision. Analysts had forecast sales of EUR24.62 billion, according to a poll of estimates compiled by FactSet. In the fourth quarter, growth slowed to 3.9% from the 8.2% the group booked the previous quarter, due in part to a tough comparison base after strong growth the previous year, EssilorLuxottica said. The group made an operating profit of EUR4.12 billion, compared with EUR3.47 billion previously; the operating margin rose seven basis points to 16.8%. Looking ahead, EssilorLuxottica said it expects tighter monetary policy and rising inflation globally to affect its performance in 2023, but backed mid-term targets of annual organic revenue growth in the mid-single digits to 2026, as well as an adjusted operating margin of 19%-20% by the end of the same period. The group will propose a dividend for 2022 of EUR3.23 a share, up from EUR2.51 paid last year. Write to Joshua Kirby at; @joshualeokirby

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