EssilorLuxottica grows in the heat of AI. The optical giant born after the merger of Luxottica and Essilor in 2018 closed the third quarter of the financial year (ended September 30th) with 6.7% year-on-year growth, rising to 11.7% at constant exchange rates, marking the group’s best quarterly performance in its history. “Achieving our best quarterly results since the group’s inception marks a turning point that reflects the strength of our vision and the ability of our management team to deliver exceptional results whatever the market conditions,“ celebrated Francesco Milleri, president and CEO of EssilorLuxottica.
Specifically, the company ended the period with sales of €6,867 million, driven by both the retail business line, up 6.5% year-on-year to €3,644 million, and the professional solutions business line, up 6.8% year-on-year with sales of €3,223 million. Looking ahead to the last quarter of the year, Milleri expressed confidence that this growth will continue.
In the first nine months of the year, the optical giant posted sales of €20,891 million, another 5.9% more than in the same period a year ago. The group highlighted above all the contribution of smart glasses to the good results, both from the point of view of retail sales and the technology solutions business.
EssilorLuxottica has valued the contribution of AI to its good results
Both posted year-on-year growth of 7.8% in the case of retail sales, generating group revenues of €11.103 billion. Turnover in the technological solutions line, which includes the manufacture and marketing of technical material for the optics sector, rose by 3.8% to €9.788 billion.
The giant’s entry into AI began with a first launch by Meta of Ray-Ban smart glasses, which it replicated in a second edition. The collaboration between EssilorLuxottica and Mark Zuckerberg’s company reached its peak this summer, when Meta, owner of platforms such as Instagram or WhatsApp, sealed the purchase of a minority stake in the optics giant, in a deal valued at €3 billion.
By market, EssilorLuxottica’s growth was led by a 9.4% rise in business in the Europe, Middle East and Africa (Emea) region, to €8,098 million. Asia Pacific was the second best performing region, although with sales still at €2,523 million, while in North America, EssilorLuxottica reported sales of €9,180 million, up 4%. Latin America is the only market in which the company recorded a 2.3% decline in business.
For the coming years, the giant’s forecasts are to maintain growth at constant exchange rates in single digits until 2026, with a target range of up to €28 million, and an adjusted operating profit of 20% of revenue at the end of the period.
