EssilorLuxottica (EL) H2 2024 earnings summary

Executive summary

• Revenue grew 6.0% for FY 2024 and 9.2% in Q4 at constant exchange rates, with all regions and segments contributing and North America, EMEA, and Asia-Pacific showing strong momentum.

• Ray-Ban Meta smartglasses reached 2 million units sold since launch, with production capacity set to reach 10 million units by end of 2025.

• Nuance Audio hearing-aid eyewear launched in the US and Europe, receiving FDA clearance and CE/ISO certifications.

• Stellest myopia management products grew 60% in China and gained traction in Europe, with nearly 3 million children equipped globally.

• Strategic focus on medtech, diagnostics, and eye treatment, supported by acquisitions such as Heidelberg Engineering, Espansione Group, and Supreme.

Financial highlights

• Adjusted operating margin advanced by 50 basis points to 17.0% at constant FX; adjusted net profit margin at 12.0%.

• Net profit rose 9.8% year-over-year to €3,122 million; free cash flow reached €2.4 billion.

• Dividend proposed at €3.95 per share, maintaining the Scrip dividend option.

• Gross margin at 63.4%–63.5% for FY 2024; operating expenses decreased by 20 basis points.

• Net debt at €10.97 billion (including €3.65 billion lease liabilities); net debt/EBITDA at 1.7x.

Outlook and guidance

• Long-term guidance confirmed through 2026, targeting mid-single-digit annual revenue growth, €27–28bn revenue, and 19–20% adjusted operating margin.

• Billions in new revenue expected from wearables, audiology, and diagnostics; 2025 growth to be driven more by volume than price.

• Comprehensive myopia suite and new Stellest glasses in development; management remains confident despite macroeconomic uncertainties.