LensCrafters 2009 Annual Report Download - page 42

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FINANCIAL
OVERVIEW
GROUP RESULTS AND OPERATING ACHIEVEMENTS
2009 was a demanding year, in many ways unique in the history of Luxottica. During the fi rst half of the
year, the main developed countries underwent a structural readjustment, followed by stabilization and
signs of recovery in the second half. In this changing environment, Luxottica nevertheless produced solid
results, with consolidated sales comfortably above Euro 5 billion and substantially in line with 2008, making
it another record year.
Flexibility, speed, the search for new solutions and a continued focus on the balance sheet enabled Luxot-
tica to post resilient results in the "new world." Luxottica grew stronger in 2009, thanks to the proven
effectiveness of its integrated business model and increased levels of effi ciency, as it reported fi nancial and
operating results that improved steadily throughout the year.
Further, during 2009 the Group launched a number of initiatives both in its Wholesale and Retail divisions
to stimulate organic sales growth, fi rst by continuing to build on the strength of its two powerful house
brands, Ray-Ban and Oakley. Both posted double digit growth during the year. Also, the Group’s diversifi ed
geographic footprint and strong balance sheet enabled Luxottica to increase its penetration in all major
markets in 2009, despite a contraction in its target markets.
Thanks to measures taken to face the challenges of 2009, consolidated net sales held above the 5-billion-
Euro mark at Euro 5,094.3 million, a decline of 2.1% at current exchange rates and 4.5% at constant ex-
change rates (1). These results compare quite favorably to historical 2008 sales, the highest in the Group’s
history.
Turning to operating performance, EBITDA (2) for the full year totaled Euro 869.1 million, refl ecting a decline
by 14.3% from Euro 1,014.7 million in 2008.
As a result, operating income for 2009 decreased to Euro 583.2 million, compared with Euro 749.8 million
for the previous year, a decline of 22.2%.
Net income for the full year totaled Euro 314.8 million versus Euro 379.7 million for 2008, refl ecting a year-
over-year decline of 17.1%, at an average Euro/US$ exchange rate of 1.3947.
By carefully controlling working capital, the Group continued to generate a strong free cash fl ow (2), and
reached a record Euro 691 million for the full year, enabling the Group to decrease net debt (2) to Euro
2,339 million at December 31, 2009, despite a dividend payment of Euro 100.8 million in the fourth quarter.
This compares to net debt of Euro 2,950 million at December 31, 2008. The net debt to EBITDA (2) ratio
improved to 2.7 times from 2.9 times at December 31, 2008.
Finally, the distribution of a cash dividend of Euro 0.35 per ordinary share, refl ecting a year-over-year 59%
increase, has been proposed to the Annual General Meeting of shareholders, for a total dividend payout
of approximately Euro 160 million.
WHOLESALE
The Wholesale division posted full-year sales of Euro 1,955.3 million, down by 6.6% at current exchange
rates and by 6.8% at constant exchange rates (1). After a diffi cult fi rst quarter due to heavy destocking, the
division’s results began to refl ect stabilization in many markets. Successful commercial measures like STARS
and continuing strong performance by the Ray-Ban and Oakley brands allowed the division to register an
improving trend throughout the year.
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