(Alliance News) - Safilo Group Spa reported Wednesday that it saw first-quarter gross industrial profit grow to EUR167.8 million from EUR155.5 million in the same period a year earlier.

Safilo's first-quarter net sales stood at EUR287.2 million, up 1.6 percent at current exchange rates and down slightly, 0.4 percent, at constant exchange rates from the EUR282.6 million reported in the first quarter of 2022.

Organic sales, on the other hand, were up 3.2 percent at constant exchange rates, on the one hand benefiting from the good performance of proprietary brands and major licenses, with Carrera, Polaroid, Carolina Herrera and David Beckham still growing at double-digit rates, and Hugo Boss and Tommy Hilfiger making good progress, and on the other hand registering still weak order intake in the U.S. on products positioned in the mid- to low-end price ranges.

In the first quarter, the performance of organic sales by geographic area was particularly strong in the European markets and the main markets of Latin America and the Middle East, driven in all cases by both the sunglasses and prescription frames business.

Ebitda rose to EUR29.3 million from EUR28.7 million a year earlier while the adjusted figure-which excludes nonrecurring costs of EUR3.1 million due to some special projects and restructuring charges from EUR3.3 million a year earlier-increased to EUR32.4 million from EUR32.0 million.

The group's net debt as of March 31, 2023 also remained largely stable compared to December 31, 2022, at EUR112.4 million or EUR70.2 million pre-IFRS 16. In the wake of the slight cash generation recorded in the last quarter of 2022, free cash flow was also slightly positive in the first quarter.

Safilo Group's stock closed Wednesday down 0.1 percent at EUR1.29 per share.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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