CHARENTON-LE-PONT, France—EssilorLuxottica (Reuters: ESLX.PA) rebounded in the second half of 2020 with strong financial results that helped offset the company’s first-half pandemic-related losses and set it on a path for continued growth in 2021. The company reported Friday that net profit attributable to owners of the parent rose 22.2 percent to €496 million for the second half of the year ended Dec. 31, 2020 versus €406 million a year ago. Adjusted attributable net profit was €781 million, compared to €891 million last year.

Operating profit grew to €830 million, up 29.7 percent over 2019. Revenue reached €8.20 billion, down 4.8 percent from last year's €8.61 billion and up 0.3 percent at constant currency rates.

For the full year ending Dec. 31, 2020, EssilorLuxottica reported revenue of €14.4 billion, down 17.0 percent at current exchange rates and down 14.6 percent at constant exchange rates, compared to 2019. The company attributed these declines to COVID-19 related lockdowns across markets in the first part of the year.

The company’s reported and adjusted gross profit came in at 58.7 percent and 58.9 percent of sales respectively while reported and adjusted operating profit were 3.1 percent and 9.5 percent of sales respectively. Reported and adjusted net profit attributable to the owners of the parent were €85 million and €788 million respectively.

The company noted that the results also reflect €528 million of negative non-cash PPA (Purchase Price Allocation) impact related to the combination of Essilor and Luxottica.

“To really understand what EssilorLuxottica is made of, just look at how we fought through the past year, the way we flipped adversity on its head and turned it into fuel for 2021," said Francesco Milleri and Paul du Saillant, respectively CEO and deputy CEO of EssilorLuxottica. "Our company and our people showed new levels of adaptability and customer loyalty in the first half of the year.

"In the second half, we shifted into a new gear—recovery and reinvestment mode—while continuing to give our teams, our partners and customers the resources and support they needed to make a comeback. This is the hallmark of a leader using its best characteristics to raise the bar for all its stakeholders: an inspiring mission, high employee shareholding, close customer relationships, digital acceleration, supply chain flexibility, and brand and product innovation.

“Our solid results demonstrate the strength of our business model and the benefits of our integration. The structural needs for good vision and recognized brands combined with innovation, vertical integration and tight cost control lead to solid profitability.

“EssilorLuxottica is now in a unique position to lead the eyecare and eyewear industry into its next chapter, using our unparalleled assets and new categories like myopia management and complete pairs to capture long-term potential.”

EssilorLuxottica management credited the strong performances of its Lenses & Optical Instruments, Retail and e-commerce business units with driving momentum. Additionally, innovations in major new categories boosted growth. These included complete eyeglass pairs with Ray-Ban Authentic, myopia management with the Stellest lens, improved eye exams and optometry with the Vision R-800 and AVA package and smart glasses with the Facebook collaboration.

Other contributing factors were a significant increase in digitalization: in-store consumer journey (digital displays, smart shopper, virtual mirror), online interactivity (appointment booking system, drive-to-store, information websites), eye exam and measurements (tele-optometry), and supply chain, according to EssilorLuxottica.

Direct e-commerce produced revenues of €1.2 billion in 2020, grew by 40 percent over the full year and by 39 percent in the fourth quarter at constant exchange rates. It was driven by main monobrand platforms like Ray-Ban, Oakley, Sunglass Hut and Costa as well as the multi-category platform EyeBuyDirect. The e-commerce business was overall accretive at the operating margin level. Good progress on synergies as the integration between the two operating companies continued to ramp up unabated during the pandemic, EssilorLuxottica said.

Revenue for Lenses & Optical Instruments division revenues rose 4.0 percent in the second half of the year and decreased 9.5 percent for the full year at constant exchange rates. Independent eyecare professionals adapted quickly to the new environment, fueling the prompt rebound of the business worldwide. North America, France and China were key drivers. Wholesale progressively normalized during the second part of the year, along with customers’ reopening, nearing revenue parity with prior year.

North America was the key driver, up double digits in the second half at constant exchange rates, sustained by independents and third-party e-commerce. Retail recovered throughout the second half of the year, as more than 90 percent of the store fleet remained open.

In the fourth quarter, the division was supported by the sound performance of optical banners, in particular in North America, Australia and Latin America, while it was impacted by new restrictions at the end of the period in specific areas of Europe and North America.

Revenue at constant exchange rates in North America, EssilorLuxottica’s largest developed market, was up in the fourth quarter and in the second half. Revenue in mainland China was up around 10 percent in the fourth quarter at constant exchange rates. Continuously strong Australia and restoring Brazil were among the best performing markets in the fourth quarter, both up double digits at constant exchange rates, the company said.

Regarding its outlook for the rest of 2021, EssilorLuxottica said that, allowing for uncertainties surrounding COVID-19, “the positive momentum already visible in AsiaPacific and the hopes that vaccinations will start to normalize the business environment in other regions in the course of the second quarter, the company has the ambition to deliver a performance comparable to pre-pandemic levels.”

The company expects some current trends to continue, such as strong e-commerce, sound prescription sales, with optical retail outperforming sun retail.

In February, 2021, EssilorLuxottica’s board of directors proposed a number of new nominees to the board. Shareholders will vote to confirm the nominees at the company’s 2021 Annual General Shareholders’ Meeting.