|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's range||137.90 - 139.05|
|52-week range||95.50 - 141.20|
|Beta (3Y monthly)||0.55|
|PE ratio (TTM)||42.20|
|Earnings date||31 Jul 2019|
|Forward dividend & yield||2.04 (1.48%)|
|1y target est||124.83|
(Bloomberg Opinion) -- Leonardo Del Vecchio’s sudden emergence as the biggest shareholder of Mediobanca SpA, Italy’s best-known investment bank, is fueling speculation of an even bigger shakeup in the country’s financial industry. The lender’s promise to pursue cautious growth looks vulnerable to a push for deeper change.Exactly what the eyewear billionaire has in mind for his 10% stake isn’t yet clear. Media reports suggest the 84-year-old Italian wants to lift his holding to as much as 20%, a huge undertaking — and not just financially. Considerable effort would be needed to obtain European Central Bank approval to own more than 10%. Del Vecchio must have grand ambitions.What’s more, the tycoon is not the best of friends with Mediobanca’s chief executive officer Alberto Nagel. The two have been at odds since a proposed investment by Del Vecchio in a Milan hospital was reportedly blocked by Nagel.Del Vecchio's recent comments appear critical of the Mediobanca boss. He hit a nerve by suggesting the bank might do better by expanding more aggressively in investment banking and relying less on income from its consumer finance business and its holding in the giant insurer Assicurazioni Generali SpA.UniCredit SpA, Italy’s biggest bank, could previously call the shots at Mediobanca before selling its own holding in the bank last week. That position let it wield influence over Generali too. Now the question is what Del Vecchio wants to do with the stake. He has also acquired a holding in Generali directly.While investors are right to fret about the peculiarities of Italian corporate governance, where minority shareholders can control the boardroom for their own interests, as a smart outsider Del Vecchio has spurred a useful debate. Mediobanca said on Tuesday that it wants to keep its 13% Generali stake until it finds an acquisition in wealth management that it needs to fund, and that he feels an obligation to keep it in Italian hands. But is it really a must have?At 4 billion euros ($4.4 billion), the value of the holding is far larger than what the bank might need for a rainy day. Proceeds from a sale could accelerate investment in more promising businesses such as private banking to generate higher returns — or they could be given back to shareholders. Or Nagel could do a bit of both. Under his four-year growth plan, Mediobanca sees returns on allocated capital in wealth management of 25% compared to 11% from Generali. Maybe it does make sense to shift more capital to the former.In fairness, that four-year strategy unveiled by Nagel this week should let the company build on its success in investment banking, consumer finance and wealth management. Mediobanca expects to bolster profitability to an 11% return on tangible equity from 10% and to boost investor payouts by 50% over the four years. Against a backdrop of Italian banks plagued by bad debt and an industry in Europe that’s mostly shrinking, Nagel deserves credit for dodging risky loans and focusing on the right businesses.Overall, Nagel is counting on average revenue growth of 4% and doubling the contribution to profit from wealth management by growing organically. But he’s still relying on returns from Generali too: The stake contributes one-third of income.It’s possible that Del Vecchio, who wields huge power at the eyewear giant EssilorLuxottica SA, will grow frustrated with the complications of investing in finance. Regulation has kept activist investors away from banking mostly. Even if he doesn’t stick around, Nagel may find his plans need to change.To contact the author of this story: Elisa Martinuzzi at email@example.comTo contact the editor responsible for this story: James Boxell at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Elisa Martinuzzi is a Bloomberg Opinion columnist covering finance. She is a former managing editor for European finance at Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios...
The big shareholder groups in EssilorLuxottica Société anonyme (EPA:EL) have power over the company. Insiders often...
2019 Capital Markets DayEssilorLuxottica is uniquely positioned to transform and accelerate the industry through its open business model * Integration well under way with progress in several areas and initial decisions taken to build a unified company * Long term revenue growth at mid-single digit excluding strategic acquisitions and the currency effect thanks to the balanced growth across all geographies and businesses along with a growing contribution from Direct-to-Consumer activities and Fast-Growing Markets1 * Adjusted2 operating and net profit at constant exchange rates expected to grow faster than sales in the long term London, United Kingdom (September 25, 2019 – 7:00 pm CET) – EssilorLuxottica, a global leader in the design, manufacture and distribution of ophthalmic lenses, frames and sunglasses, hosted its 2019 Capital Markets Day in London today, presenting its strategic vision, integration progress and long-term financial guidelines.“This is a milestone moment for EssilorLuxottica because we have successfully mapped out our go-forward strategy and initiated the first concrete moves of the integration. The teams are working well together, and we are fully energized about what the future holds, not just for us, but for the entire industry,” commented Francesco Milleri, Deputy Chairman – CEO of Luxottica Group."We are very pleased to have shared the first steps towards the unification of EssilorLuxottica today including our strategic vision for the eyecare and eyewear industry, our latest innovation and an update on our integration progress. I am increasingly confident in our future each time I see the dedication, talent and expertise of our strong teams around the world. Together, we will take great strides to bring better vision to the billions of people in need around the world,” added Laurent Vacherot, CEO of Essilor International.Strategic Vision In a presentation to investors, EssilorLuxottica shared its strategic vision for the future, where combining the strengths of Essilor and Luxottica will open up new avenues for growth and enable the Company to achieve its purpose, “see more, be more, and live life to its fullest”.EssilorLuxottica’s plans to grow its business and the broader industry are rooted in the following pillars: * An open business model where eyecare and eyewear products are accessible to everyone, everywhere. This will be made possible as the Company shifts to a global network model made up of stores, prescription laboratories, logistics hubs, R&D centers and digital properties, all connected in real time and benefiting from advanced analytics and data * Accelerated Innovation that leverages both companies’ research and development; supply chain advancement by combining frames and lenses for the complete pair; revolutionizing the eye exam; developing smart eyewear and new categories * Reshaping the consumer journey from refraction exam, awareness and storytelling to access and convenience to digitally enabled stores * Embedding sustainability at EssilorLuxottica’s core: from responsible environmental practices to philanthropic initiatives to employee shareholding Progress on the Integration During the first nine months of the year, the Company put in place a structured process to drive integration and deliver synergies. The net impact on adjusted2 operating profit of those synergies is expected to be in the range of: * Euro 300 to Euro 350 million in the period 2019/2021 * Euro 420 to Euro 600 million by 2022/2023With the ultimate objective of building a unified company, EssilorLuxottica has launched more than 20 priority work streams and 160 business initiatives that are being implemented globally. This activity is under the leadership of more than 40 key executives with the full commitment of dedicated teams involving more than 800 employees across the two organizations.First steps include: * The creation of one single supply chain and prescription laboratories network * The integration of Costa in the Luxottica’s brand portfolio and frame network * The introduction of a Co-location model to systematically review headquarters locations for EssilorLuxottica * A pilot project in Italy to define one single IT platform to be quickly rolled out across the Company’s organizationBuilding the foundations of a new common culture The Company is building the foundations of a new culture by combining the best of both worlds. This includes Essilor’s employee shareholding culture and Luxottica’s welfare traditions, to name a few examples. On September 26, the Company will start campaigning its new global employee shareholding plan. For the first time, the plan will include Luxottica’s employees in Italy, paving the way for a full roll-out of the initiative within EssilorLuxottica globally in the future. As of today, more than 46,000 Essilor employees are EssilorLuxottica shareholders.Guidelines on financial targets EssilorLuxottica will continue to rely on a strong foundation for future growth, including state-of-the-art research and development, strong brands, sustainable growth levers, and powerful human capital. In the long-term (up to 2023), the Company’s ambition on financial targets, all of which exclude the impact of strategic acquisitions and currency effect, is as follow: * Sales: mid-single digit growth with a growing contribution from Direct-to-Consumer activities and Fast-Growing Markets1 * Adjusted2 operating profit: 1.0–1.4x sales * Adjusted2 net profit: 1.0–1.5x salesNotes1 Fast-Growing Countries or Markets: include China, India, ASEAN, South Korea, Hong Kong, Taiwan, Africa, the Middle East, Russia, Eastern Europe and Latin America. 2 Adjusted measures or figures: adjusted from the expenses related to the combination between Essilor and Luxottica and other transactions that are unusual, infrequent or unrelated to the normal course of business as the impact of these events might affect the understanding of the Company’s performance.EssilorLuxottica is a global leader in the design, manufacture and distribution of ophthalmic lenses, frames and sunglasses. Formed in 2018, its mission is to help people around the world to see more, be more and live life to its fullest by addressing their evolving vision needs and personal style aspirations. The company brings together the complementary expertise of two industry pioneers, one in advanced lens technology and the other in the craftsmanship of iconic eyewear, to set new industry standards for vision care and the consumer experience around it. Influential eyewear brands including Ray-Ban and Oakley, lens technology brands including Varilux® and Transitions®, and world-class retail brands including Sunglass Hut and LensCrafters are part of the EssilorLuxottica family. In 2018, EssilorLuxottica had nearly 150,000 employees and pro forma consolidated revenues of Euro 16.2 billion. The EssilorLuxottica share trades on the Euronext Paris market and is included in the Euro Stoxx 50 and CAC 40 indices. Codes and symbols: ISIN: FR0000121667; Reuters: ESLX.PA; Bloomberg: EL:FP. CONTACTSEssilorLuxottica Investor Relations (Charenton-le-Pont) Tel: + 33 1 49 77 42 16 (Milan) Tel: + 39 (02) 8633 4870 E-mail: email@example.comEssilorLuxottica Corporate Communications (Charenton-le-Pont) Tel: + 33 1 49 77 45 02 (Milan) Tel: + 39 (02) 8633 4470 E-mail: firstname.lastname@example.org Attachment * DOWNLOAD PDF VERSION OF THE NEWS RELEASE
Growing demand for vision correction should boost sales of Ray Bans and other eyeglasses, EssilorLuxottica SA said on Wednesday, with profits also driven by cost cuts of up to 600 millions euros (£527.71 million) a year from 2022 following the merger of French lenses specialist Essilor and Italian spectacles maker Luxottica. EssilorLuxottica is targeting mid-single digit sales growth at constant exchange rates for the next five years, it said in a presentation on the company website ahead of an investor day in London. In 2018, sales at EssilorLuxottica were up 3.2% at 16.1 billion euros.
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Third Point, run by billionaire investor Daniel Loeb, is targeting EssilorLuxottica amid a power struggle inside the world's largest lenses and glasses manufacturer, following its formation last year through a 48 billion euro ($53 billion) merger of France's Essilor and Italy's Luxottica. Billed as a merger of equals, it degenerated into a battle over control between Luxottica's founder Leonardo Del Vecchio and Essilor's chief Hubert Sagnieres.
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EssilorLuxottica is buying Dutch opticians group GrandVision for up to 7.2 billion euros ($8 billion) in cash to take control of thousands of stores where it sells spectacles and lenses. The deal marks a new milestone for EssilorLuxottica, which was formed last year from the merger of French lens maker Essilor and Italian eyewear group Luxottica, but which has been hit by disputes over who should run the group. GrandVision, whose chains include Vision Express in Britain and For Eyes in the United States, would give EssilorLuxottica control of more than 7,000 outlets across the world where it already sells brands including Varilux lenses and Ray-Ban sunglasses.
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