EssilorLuxottica SA (EL.FR) said Friday that its 2018 net profit declined when adjusting for the merger of its two constituent businesses, and set goals for the year ahead.
The company declared a dividend of EUR2.04 per share, to be approved at its annual meeting on May 16.
For 2019, EssilorLuxottica says it expects its sales to grow by between 3.5% to 5% at constant exchange rates, and that it sees its net profit, adjusted for the expenses from the Essilor-Luxottica combination and other unusual transactions, growing at 1-1.5 times the pace of sales growth.
EssilorLuxottica said that it expects the synergies from the merger of Essilor and Luxottica to range from EUR420 million-EUR600 million as a net yearly impact on its operating profit within the next five years. It also said it sees revenue synergies in the EUR200 million to EUR300 million range.
The eyewear company said it was considering governance issues, but gave no update on its plans regarding its leadership.
EssilorLuxottica SA is a vertically integrated French multinational corporation, one of the leading groups in the design, production and marketing of ophthalmic lenses, optical equipment and prescription glasses and sunglasses.
The global eyewear holding company has 16 billion euros in revenues and 57 billion capitalization, founded on 1 October 2018 from the merger between Essilor and Luxottica, based in Paris, France.
The company is listed on the Euronext Paris stock exchange and is part of the CAC 40 share index which includes the 40 largest capitalized companies traded on the Paris Stock Exchange and the Euro Stoxx 50 which includes the 50 largest companies in the Eurozone.