(AOF) – EssilorLuxottica and the Chalhoub Group have signed a joint venture agreement aimed at developing the sale of eyewear in the GCC (Gulf Cooperation Council) region. The two groups want to develop the eyewear category in this region of the world with “improved customer service and an unparalleled consumer experience”. A series of single and multi-brand stores will be opened in the GCC region around EssilorLuxottica’s global eyewear brands, such as Ray-Ban, Persol and Oliver Peoples, to enable the company to expand its presence in the region.
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Key points
– World number 1 in ophthalmics and optics, born in 2018 from the merger between Essilor and Luxottica;
-Turnover of €24.5 billion achieved at 52% in direct sales to the consumer (sunglasses and distribution via GrandVision) and 48% in solutions for professionals (essentially eyeglasses);
– Strong presence in America, for 47% of sales, in Europe-Africa-Middle East for 36%, in Asia-Pacific for 11% then in Latin America;
-Business model based on innovation, the integration of production, logistics and distribution processes on a global level and the use of big data for decision-making;
– Capital controlled at 32.1% by the del Vecchio family, by employees (4.4%) and marked by the presence (1.02%) of BPI France, Francisco Milleri being chairman and managing director and Paul du Saillant managing director deputy general;
– Healthy balance sheet with net debt of €10.4 billion, compared to €3.7 billion in cash and +€35 billion in equity.
Challenges
– 2022-2026 strategy targeting 5% annual growth in revenue and an operating margin of 19 to 20%;
– Innovation strategy aimed at eradicating poor vision by 2050: articulated around 4 initiatives: improving vision, increasing the precision of eye exams, expressing a style and creating connected glasses / developing the portfolio of 2 350 patent families from 8 R&D centers and the new laboratory in partnership with the Polytechnic of Milan;
– Environmental strategy “Eyes on the planet” aiming for carbon neutrality in 2025, after Europe in 2023, with 2 strategic priorities: carbon: self-production of energy, compensation through reforestation and use of renewables,
circularity and integration of eco-design in all product development, including through the acquisition of Fedon;
– Recognized assets – Ray-Ban and Oakley glasses, Varilux lenses, Transitions – and the rise of Stellest lenses;
– Continued investment in distribution networks: after GrandVision and Vitasi, American laboratories Walman and, in a joint venture with CoopersCies, SightGlass Vision.
Challenges
– Results of the fight against the progression of myopia in children with Stellest lenses, now sold in France and Italy, with SightGlassVision lenses, with MiSightTM contact lenses, validated by health authorities in China and the United States ;
– Resumption of e-commerce growth (7% of sales);
– Dividend of €3.23, up 29%, payable in shares or cash and continuation of the €2 million share buyback program.
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