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Safilo's net sales up 8.5%, EBITDA down €13.5m, loss €52.7m


Italy's Safilo Group has reported group net sales at €1,279.0 million for the full 2015 year, up 8.5% compared to 2014 (flat at constant exchange rates, and up 4.3% on the going forward brands portfolio).

Adjusted EBITDA was €102.4 million, down 13.5% compared to 2014, at 8.0% of net sales while adjusted group net was €6.9 million.

The group reported a net loss of €52.7 million including non-recurring items.

Group net debt was €89.9 million, compared to €163.3 million in 2014, with the adjusted2 financial leverage at 0.9x.

The company's consolidated financial statements for the year ended 31 December 2015 and separate financial statements for the year ended 31 December 2015 will be submitted for approval by the shareholders at the annual general meeting to be held on 27 April.

According to the company, at constant currencies, 2015 net sales were flat compared to 2014, reflecting differing business and market dynamics. The performance of the group's going forward brands portfolio, i.e. excluding all brands that Safilo stopped and will stop servicing, showed growth of 13% at current exchange rates and 4.3% at constant exchange rates.

At the operating level, 2015 gross margin moved from 61.0% to 59.2% of sales while adjusted2 EBITDA margin stood at 8.0% of sales vs. 10.0% in 2014.

Safilo closed 2015 with an adjusted2 group net result of €6.9 million compared to the adjusted2 net result of €44.5 million recorded in 2014.

The 2015 adjusted economic results do not include non-recurring costs for a total of €60.5 million, mainly related to the impairment of the goodwill allocated to the Far East business and a provision related to an investigation by the French Competition Authority.

In 2015, the Group generated a free cash flow of €74.8 million, further reducing the group net debt to €89.9 million from €163.3 million in 2014 and the adjusted2 financial leverage to 0.9x from 1.4x.

This reflected the ongoing improvement in net working capital management, the proceeds from the sale of shares held in an associate company for €8.6 million and the first of the three compensation payments of €30 million from Kering received in January 2015.

Directors have decided not to propose the payment of a dividend to the next annual general meeting.

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