EssilorLuxottica (EL) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached €13,290 million, up 5.3% at constant exchange rates, with EMEA and Asia-Pacific leading growth and North America maintaining steady gains.

• Adjusted operating profit margin reached 18.8% in H1, up 50bps at constant FX, with adjusted operating profit at €2,431 million and free cash flow of €971 million.

• Net profit attributable to owners was €1,746 million (+10.6% at constant FX), with higher operating profit offset by increased income taxes.

• Strategic acquisitions of Supreme and an 80% stake in Heidelberg Engineering announced, reinforcing med-tech and brand pillars, expected to close in H2 2024.

• Innovation continued with strong performance from Stellest in China, Ray-Ban Meta wearables, and new licensing agreements.

Financial highlights

• H1 2024 revenue: €13,290 million (+5.3% constant FX, +3.4% current FX); Q2 revenue: €6,955 million (+5.2% constant FX).

• Adjusted gross profit: €8,541 million (64.3% of revenue, +40bps at constant FX).

• Adjusted operating profit: €2,431 million (18.8% of revenue at constant FX, +50bps).

• Adjusted net profit: €1,746 million (+10.6% at constant FX); net profit margin: 13.1%.

• Free cash flow: €971 million in H1 2024; net debt: €9,758 million at June 30, 2024; net debt/EBITDA LTM: 1.5x.

Outlook and guidance

• Targeting mid-single-digit annual revenue growth (2022–2026) at constant FX and adjusted operating profit margin of 19–20% by 2026.

• Continued focus on innovation, integration of acquisitions, and expansion in myopia management and wearables.

• Full-year adjusted tax rate expected to be broadly in line with 2023.