Safilo, farewell to Ferragni is not enough to increase the value
Safilo was the first to officially declare the termination of the contract with Chiara Ferragni, followed by the scandal regarding the Balocco pandoro. Only a few days after the incident broke out, Safilo ended the collaboration with the influencer due to alleged contractual violations, as reported by Mf. It is unclear whether the Ferragni-branded eyewear line, deriving from the September 2021 agreement, has brought benefits or costs to the Veneto eyewear group's accounts. What is certain is the closure of that relationship.
Read also: Safilo dumps Chiara Ferragni after the Pandoro “scandal”.
Although Safilo was the first to part ways with the influencer, it wasor among the last in terms of stock performance in the just concluded year, with a loss of 41% of its value during 2023. On 29 December, the stock closed at 0.91 euros, bringing the price back to the prices of spring 2021 and a sharp decline from the relative highs reached in August 2022 at 1.64 euros. Despite the progress in the restructuring undertaken since 2019, Safilo continues to suffer on the stock market.
Read also: Safilo and Amazon launch new Carrera smart glasses with Alexa
The crisis has plagued the eyewear group for years, with record losses and capital increases needed to restore financial balance. Despite the recent recovery, Safilo still has rather low profitability compared to the big players in the sector. In 2023, it closed with revenues of 785 million and an industrial margin of 7.4%, while the adjusted gross margin was 9.6% of the turnover. Despite the return to profit, the data indicates a small gain, down over the years precedents.
The Padua company closed the Longarone plant in 2023 as part of the relaunch plan. While Safilo refinanced bank debt for 300 million and closed a capital increase in 2021, its stock continues to suffer on the stock market. Safilo's profitability is lower than the giants of the sector, with a net profitability of 5% on revenues and an industrial profitability of around 8%. By comparison, companies like Essilux have much higher levels of profitability.
While Safilo continues its restructuring phase, other players in the sector, such as Marcolin, show signs of improvement. Marcolin, 49% owned by the Dutch Hal, has just renewed the three-year contract with CEO Angelo Trocchia, committing to achieving revenues of 1.3 billion and an industrial gross margin of 12% by 2027. It remains to be seen whether Safilo will be able to rise up in 2024 and compete with other players in the sector.
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