Italy Glasses Accessories And Leather Goods Manufacturer Fedon Sales Fell Slightly In 2019.

Fedon, a Italy eyewear accessories and leather goods manufacturer, said recently that its sales volume was 64 million 200 thousand euros in fiscal year 2019 (up to December 31st), a slight decrease compared with 65 million 700 thousand euros in the previous year (-2.43%).

The good news is that the company achieved profitability and net profit of 196 thousand euros, compared with a net loss of 5 million 50 thousand euros in 2018. In the face of the impact of the new crown epidemic, the board of directors of the parent company Giorgio Fedon & figli suggested that the profits allocated to dividends be retained.

Specifically, sales of major glasses manufacturers dropped by 3.2% compared with the same period last year. The wholesale business for spectacle retailers has increased by 12.2%. This change stems from a project launched last year by the group to adjust business models, including a number of business measures related to sales network organization and discount policy. Overall, as the group's core business, the Department of spectacles declined slightly compared with the same period in 2018 (-1.5%).

EBITDA (profit before interest tax depreciation amortization) is about 7 million 200 thousand euros, and its share in revenue has increased by 11.88% over the previous year. This strong growth is mainly due to the huge cost that the group has invested in improving corporate performance in recent years. Operating profit also showed a positive trend, reaching 2 million 300 thousand euros in 2019, an increase of 10.78% over 2018.

In the future, Fedon expects 2020 to be full of uncertainties, especially the glasses accessories business. To mitigate the impact of exchange rate on profitability, the parent company Giorgio & amp; Li launched part of the hedging policy to offset the impact of exchange rate fluctuations.

The leather sector is facing restructuring. The group closed its unprofitable stores and conducted a business review. The management of the company will pay close attention to all the variables so as to take timely intervention measures and find solutions, increase profit margins and ultimately achieve higher efficiency and profitability.

Due to the spread of the new crown virus, the Group expects sales in the first half of 2020 to be affected and is expected to resume in the second half.

About Fedon

Giorgio Fedon & Figli S.p.A. was founded by Giorgio Fedon in 1919 in Vallesella, Veneto, Italy, north of the region. It was primarily engaged in the production of spectacle boxes. In 2003, the company founded leather goods brand Giorgio Fedon 1919, officially entered the leather industry. Today, Giorgio Fedon & Figli S.p.A. has become a global leader in the field of spectacle boxes and optical accessories. The direct business of the group's leather brand Giorgio Fedon 1919 is also developing rapidly.