Full Year 2024 EssilorLuxottica SA Earnings Call Transcript
Key Points
- Essilorluxottica (ESLOF) reported a 9% revenue growth in Q4 and 6% for the full year 2024, driven by strong organic growth and new wearable categories.
- The company expanded its operating margin by 50 basis points, achieving double-digit net margin and strong free cash flow generation.
- Ray-Ban Meta glasses, launched in collaboration with Meta, sold over 2 million units since September 2023, indicating strong market acceptance.
- Essilorluxottica (ESLOF) is expanding its production capacity for Ray-Ban Meta to reach 10 million units annually by the end of next year.
- The company is making significant strides in the hearing aid market with the launch of Nuance Audio glasses, receiving FDA clearance in the US and CE certification in Europe.
- Essilorluxottica (ESLOF) faces inflationary pressures, particularly labor-driven, which could impact cost management.
- The Ray-Ban Meta product line is currently dilutive to margins due to the electronic component, although this is improving with scale.
- The company is dealing with potential headwinds from duties in China and Mexico, which could affect supply chain and costs.
- Essilorluxottica (ESLOF) is in the early stages of wearable technology, which involves significant investment and carries risks associated with new product categories.
- The company faces challenges in integrating new acquisitions like Supreme and Heidelberg, which could impact short-term financial performance.
Good morning and good afternoon, everybody. This is Giorgio Iannella from the IR team. Thank you for joining EssilorLuxottica Full year 2024 Results Management Call. The Group's Chairman and CEO, Francesco Milleri; the Deputy CEO, Paul du Saillant; and the CFO, Stefano Grassi, will walk you through the business and financial highlights of last year. (Operator Instructions)
With that, I hand it over to Francesco.
Welcome, everybody. I'm happy to reconnect with you to present the sound financial performance of 2024 and give you an update on our strategic initiatives in smart glasses and hearing aids. EssilorLuxottica's revenue broadly maintain the sound pace of the past years with the fourth quarter at 9% and the full year at 6%. This came on the back of the sound organic growth of our business, supported by the solid trajectory of the eye care eyewear activities and boosted by the new category of
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