(AOF) – EssilorLuxottica has confirmed that the French Competition Authority has published a decision regarding Essilor International. In connection with a procedure initiated in 2014, a fine of 81 million euros was pronounced against Essilor International (including 15 million euros jointly with its parent company EssilorLuxottica) for discrimination against pure-players of online sales and protection of physical distributors, concerning the marketing of certain specific prescription lenses.
EssilorLuxottica is firmly convinced of the legality of its practices and of the merits of marketing certain segments of corrective lenses under conditions that guarantee consumers the best visual correction necessary to meet their personal needs.
The company also maintains that it operated in strict compliance with the competitive and regulatory environment of the relevant period, not only for the benefit of its customers and partners but also for the entire industry.
Thus, EssilorLuxottica strongly contests the decision rendered by the Autorité and will appeal. The company is confident in its ability to prove that the Autorité’s decision is unfounded.
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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 €31.5 billion, achieved 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 46.5% of sales, in Europe-Africa-Middle East for 37%, in Asia-Pacific for 12% then in Latin America;
– Business model based on innovation and full integration of production, logistics and distribution processes on a global level;
– 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;
– Environmental strategy “Eyes on the planet” aiming for carbon neutrality in 2025, after Europe in 2023, with 2 strategic priorities: carbon: compensation by reforestation and use of renewables / circularity and integration of eco-design in all product developments in 2025;
– 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);
– Maintenance at the end of the year of the growth rate of 1
er
quarter (37% increase in turnover and 26% increase in net profit);
– €2 million share buyback program.
The French beauty and hygiene market continues to decline
In recent years, the French have simplified their beauty routines, which has resulted in lower spending. According to Kantar, the weight of personal care and beauty in spending on consumer products has steadily decreased over the past five years, dropping below 10%. Thus in 2021, health and beauty expenditure accounted for 8.5%. For the NielsenIQ panelist, the development of telework penalizes the sector because teleworkers reduce their health and beauty purchases twice as quickly as the average French person. This trend is likely to continue in 2022. To this is added another negative factor: with inflation and the loss of purchasing power, the French will certainly carry out arbitrations in their spending, which could be at the expense of the hygiene-beauty.