Safilo Group SpA (0NJ5.L) Q3 2024 Earnings Report

Safilo Group S.p.A. delivered a subdued Q3 2024 top line of EUR 230.6 million, down 2.8% year-over-year and down 56.6% quarter-over-quarter from the prior quarter. The gross margin remained robust at 59.3%, consistent with the high end of historical ranges, suggesting the company’s product mix and pricing power remain relatively stable despite demand volatility. EBITDA stood at EUR 12.2 million, translating to an EBITDA margin of 5.3%, with operating income of EUR 4.41 million (1.91% margin) and net income of EUR 2.35 million (1.02% margin), reflecting modest profitability even as the quarter faced a sharp QoQ revenue decline. Free cash flow was positive at EUR 21.28 million, underscoring solid operating cash generation, while net cash from financing and working capital movements led to a net cash outflow for the period and an estimated ending cash position near zero based on the reported cash flow math.

Management commentary (where available) emphasized ongoing brand optimization, a focus on core eyewear brands, and disciplined cost control as drivers of resilience. Absent explicit forward guidance in the data provided, the quarter appears to reflect seasonality and a challenging near-term demand environment rather than a structural deterioration in profitability. The balance sheet benefited from healthy operating cash flow and working-capital discipline, though financing activities and working-capital usage created a near-term cash outflow that warrants monitoring of liquidity and capital allocation going into the next quarters.