Safilo’s net sales up 8.5%, EBITDA down ???13.5m, loss ???52.7m

Adjusted EBITDA was euro 102.4 million, down 13.5% compared to 2014, at 8.0% of net sales while adjusted group net was euro 6.9 million.
The group reported a net loss of euro 52.7 million including non-recurring its.
Group net debt was euro 89.9 million, compared to euro 163.3 million in 2014, with the adjusted2 financial leverage at 0.9x.
The company’s consolidated financial statents for the year ended 31 Decber 2015 and separate financial statents for the year ended 31 Decber 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 euro 6.9 million compared to the adjusted2 net result of euro 44.5 million recorded in 2014.
The 2015 adjusted economic results do not include non-recurring costs for a total of euro 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 euro 74.8 million, further reducing the group net debt to euro 89.9 million from euro 163.3 million in 2014 and the adjusted2 financial leverage to 0.9x from 1.4x.
This reflected the ongoing improvent in net working capital managent, the proceeds from the sale of shares held in an associate company for euro 8.6 million and the first of the three compensation payments of euro 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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