Safilo reports 2017 full-year sales down 18.5%

Italy-based Safilo Group has reported net sales for the financial year ended 31 December were Euro 1,047.0 million, down by Euro 194 million at constant currency compared to 2016.

According to the company, the reduction in sales was caused both by the change of the Gucci licence into a supply agreement, representing Euro 155 million (-12%), and by the implementation of the new Order-to-Cash IT system in the Padua Distribution Centre early in the year.

That event negatively affected deliveries, and while operationally recovered from mid-year, affected order taking and thus reduced sales and profit up to including the fourth quarter.

Exceptional external costs

In addition, it caused exceptional external costs of approximately Euro 4 million.

Dior collections experienced a decline after several years of extraordinarily strong growth. The total of all other licences, as well as the own core brands, grew single digits. The net sales of the going forward brand portfolio decreased by 3.9% at constant exchange rates.

In the fourth quarter of 2017, Safilo’s preliminary total net sales equalled Euro 249.2 million, contracting by Euro 53 million at constant currency compared to 2016.

Loss of Gucci accounted for Euro 44m

The net effect of exiting the Gucci licence and entering the supply agreement accounted for Euro 44 million of the decrease, while net sales of the going

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By | March 19th, 2018|Business|

Essilor-Luxottica merger gets OK In United States and Europe

 

Essilor and Luxottica have announced that their proposed merger has received the approval of authorities in both the United States and Europe.

The deal has been approved by the US Federal Trade Commission and the European Commission without conditions.

To date, the transaction has also been unconditionally approved in 13 other countries: Australia, Canada, Chile, Colombia, India, Japan, Mexico, Morocco, New Zealand, Russia, South Africa, South Korea and Taiwan.

The merger is expected to be finalised in the first part of this year. One major remaining step is securing approval from anti-trust regulators in China.

Mila, Italy-based Luxottica’s proposed deal with Essilor. France-based manufacturers of lenses as well as instruments and equipment, is valued at 48 billion euros (A$76 billion}.

It is planned the combined company will be called EssilorLuxottica.

 

By | March 4th, 2018|Business|

Luxottica’s record financial results in fiscal 2017

Italy based Luxottica Group on 26 February reported record net profit and free-cash flow in fiscal year 2017.

Net sales rose 2.2% at constant exchange to €9,157 ($A14,370) million, while net income increased 24.7% at constant exchange to €1,038 ($A1,630) million, according to the company’s earnings announcement.

Adjusted net income increased 12.2% at constant exchange to €970 million, producing a net margin of 10.6%. Net profit and free-cash flow generation exceeded €1 ($A1,57) billion for the first time in the company’s history.

The last three months of 2017 were “the best of the year for the wholesale business, comparable-store sales, Sunglass Hut in the main geographies … and e-commerce,” Luxottica reported in its earnings announcement.

The company also cited its “most significant initiatives of 2017,” which included the launch of Ray-Ban ophthalmic lenses, “price harmonization across sales channels, greater segmentation and attention to wholesale distribution,” and the continuous development of the company’s proprietary brands’ e-commerce platforms.

 

By | February 28th, 2018|Business|

Incomplete sentence

 

Th first line of the first item in yesterday’s ‘Today’s Ophthalmic News’ was incomplete. It should have been:

“Real estate big noise John McGrath on 9 February resigned as a director of optical retail group George & Matilda’s owner IPIC Pty Ltd, leaving the company’s other directorships in place.”

By | February 19th, 2018|Business|

Three giants in US to form independent health-care company

Three corporate behemoths — Amazon, Berkshire Hathaway and JPMorgan Chase — announced on 30 January that they will form an independent health-care company for their employees in the United States.

The alliance is regarded as a sign of just how frustrated American businesses are with the nation’s health care system and the rapidly spiralling cost of medical treatment.

It will also cause further turmoil in an industry reeling from attempts by new players to attack a notoriously inefficient, intractable web of medical practitioners, hospitals, insurers and pharmaceutical companies.

It is not clear how extensively the three partners will overhaul their employees’ existing health coverage — whether they would simply help workers find a local doctor, steer employees to online medical advice or use their muscle to negotiate lower prices for drugs and procedures.

While the alliance will apply only to their employees, the three corporations are so closely watched that whatever successes they have could become models for other businesses.

Major employers, from Walmart to Caterpillar, have tried for years to tackle the high costs and complexity of health care, and have grown increasingly frustrated as Congress has deadlocked over the issue, leaving many of the thorniest issues to private industry. About 151 million Americans get their health insurance from an employer.

But the 30-January announcement landed

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By | February 4th, 2018|Business|

Directors and senior executives bailing out of George & Matilda director’s company

The chairman, three directors and the chief executive are bailing out of a company that was floated in December 2015 by Mr John McGrath, who is also a director of optical retail group George & Matilda Eyecare.

Mr McGrath floated Australian Sock Exchange-listed real-estate company McGrath Limited for $2.10 a share, enabling him to pocket $37million. He is now executive chairman.

However, since floating the company’s share price has fallen steadily to 51c as of 23 January.

Documents leaked to The Australian Financial Review show earnings for the five months to November were only $1.8 million rather than the $7.8 million the market is said to have been expecting.

George & Matilda Eyecare is owned by Sydney-based IPIC Holdings Limited, which , for its first 16 months trading, reported a $7.6m loss on revenue of $15.9m including $7m borrowings.

IPIC’s auditor expressed concern about its ability to continue as a growing concern, however said its directors were confident of it being able to do so.

Since then, the company has refinanced.

The chairman of IPIC is Mr Andrew Reitzer,

By | January 24th, 2018|Business|

Canadian judge rules against online retailer

A Canadian judge has ruled in favor of two Ontario regulatory colleges that filed lawsuit seeking to prevent Essilor’s Canadian online retail company, Clearly, from dispensing prescription eyewear over the internet.

The College of Optometrists and the College of Opticians, both located in Toronto, jointly filed the application in December 2016. A hearing was held on 11 October 2017 and Justice Thomas Lederer delivered his decision on 11 January.

In a message to its members, The College of Optometrists said, “Although we are still reviewing the decision in detail, we are pleased that the court has agreed with the position of the colleges on the questions we brought forward.

Internet can be effective however …

“The colleges believe that the internet can be an effective tool for the provision of vision care, however the dispensing of corrective lenses is a controlled act, subject to Ontario legislation, that definitively requires a regulated health professional’s involvement. Mail order over the internet without the involvement of an optometrist or optician is inconsistent with legislation.”

Clearly is appealing Justice Lederer’s decision and while the appeal process is underway, the company plans to continue servicing customers in Ontario.

“Clearly is committed to making vision care accessible worldwide and believes that the internet is complementary to other distribution channels,”

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By | January 21st, 2018|Business|

Full-service marketing, including appointment services, tailored to suit all-sized optometry practices; agreement

Jayex Healthcare has entered the optometry market and expanded its health-care services network by signing an exclusive world-wide ‘Solution Provider Agreement’ with OptomEDGE and the Valued Patient Group.

Both Australian-based companies have identified a strong need for practice-focused communication technology in conjunction with effective marketing campaigns.

Joint collaboration will accelerate time to market for PMS-integrated online appointments and practice marketing programs aimed at health-care topic awareness delivering measurable results.

Online appointment booking

The agreement is mainly focused on two key services – Jayex Appointuit online appointment bookings, and the integrated SMS and Email communication platform.

Optometry practices will now be able to benefit from ‘pre-populated’ email newsletter content, which saves significant time and ensures that practices have a reliable way to keep in touch with patients between visits.

Jayex brings its well-established model of supporting health-care professionals with dedicated development teams to enable the integrations and any customisations required.

Creating optometry content

OptomEDGE specialises in creating optometry content, patient recalls, online advertising, websites and landing page design, and data-driven analytics to optimise digital interactions.

The collaboration between Jayex Healthcare and OptomEDGE is designed to give patients greater access to quality health-care content, and for practices to achieve greater efficiencies in converting awareness into appointments by delivering a patient experience which can be tailored to each practice.

Jayex Healthcare: Contact: Amy Hill, Australian General Manager, 

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By | January 21st, 2018|Business|

$370-million settlement of Allergan lawsuit in US

Pershing Square Capital Management and Valeant Pharmaceuticals are to pay $US270 million ($A370 million) to settle a lawsuit that alleged their trading in Allergan was illegal, allowing William Ackman to put behind him the last verges of an investment that created turmoil at the Pershing Square hedge fund the billionaire heads.

Allergan shareholders (as plaintiffs) allege Mr Ackman, Pershing Square and Valeant improperly traded ahead of their takeover bid for Allergan in 2014.

According to an agreement in principle, reached after a judge issued a tentative opinion that heavily sided with the shareholder plaintiffs, Pershing Square will pay $US193.75m and Valeant will pay $US96.25m, which is a shift from an earlier agreement the two had struck when Valeant would have paid 60 per cent in a settlement.

Valeant and Pershing Square partnered in early 2014 to try to buy Allergan for more than $US50 billion.

The bid failed when Actavis swept in with a $US66bn offer for Allergan, however Pershing Square walked away with $US2.5bn profit and Valeant with more than $US 400m.

 

By | January 7th, 2018|Business|

$370-million settlement of Allergen lawsuit in US

Pershing Square Capital Management and Valeant Pharmaceuticals are to pay $US270 million ($A370 million) to settle a lawsuit that alleged their trading in Allergan was illegal, allowing William Ackman to put behind him the last verges of an investment that created turmoil at the Pershing Square hedge fund the billionaire heads.

Allergan shareholders (as plaintiffs) allege Mr Ackman, Pershing Square and Valeant improperly traded ahead of their takeover bid for Allergan in 2014.

According to an agreement in principle, reached after a judge issued a tentative opinion that heavily sided with the shareholder plaintiffs, Pershing Square will pay $US193.75m and Valeant will pay $US96.25m, which is a shift from an earlier agreement the two had struck when Valeant would have paid 60 per cent in a settlement.

Valeant and Pershing Square partnered in early 2014 to try to buy Allergan for more than $US50 billion.

The bid failed when Actavis swept in with a $US66bn offer for Allergan, however Pershing Square walked away with $US2.5bn profit and Valeant with more than $US 400m.

 

By | January 7th, 2018|Business|