MILAN — Fresh off the news that it had acquired the Ic! Berlin brand, Marcolin on Thursday said it had increased its profitability in the first nine months of the year, on the back of a 3 percent gain in revenues, which were affected by a slowdown in the U.S.
In the nine months ended Sept. 30, net profit at the Italian eyewear company jumped to 13.5 million euros, up by 11.7 million euros compared with the same period last year.
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Including non-recurring costs, adjusted earnings before interest, taxes, depreciation and amortization climbed 28 percent to 64.6 million euros compared to 50.5 million euros last year, representing a margin of 15.3 percent of sales compared with 12.3 percent.
Sales amounted to 421.6 million euros compared with 409.7 million euros in the first nine months last year.
Marcolin produces eyewear collections for brands ranging from Bally, Moncler and Max Mara to Tod’s, Pucci, Guess, Timberland and Adidas Original, to name a few. Proprietary brands include Web Eyewear.
In a statement, the company touted a strategy “whose main objective is the increase of profitability, achieved through a process of rationalization and consolidation of the portfolio of licenses, a focus on the quality of the products and on the margins,” in addition to a sustainable growth obtained “through the careful evaluation of investments and monitoring fixed costs.”
In the nine months, operating profit rose to 46.4 million euros from 30.5 million euros the prior year.
Sales in Asia soared 86 percent to 29.2 million euros. Revenues in Europe, the Middle East and Africa were up 4 percent to 204 million euros.
However, in the U.S., sales were down 3.7 percent to 168.1 million euros, representing almost 40 percent of the total, and revenues in the rest of the world decreased 10 percent to 20.1 million euros.
In the third quarter, adjusted EBITDA amounted to 13.3 million euros, up 34.3 percent compared with 9.9 million euros in the same period last year, balancing a 10.4 percent drop in sales, in particularly in the U.S.
Marcolin closed 2022 by securing a perpetual license agreement for the production of Tom Ford’s eyewear, which it had been licensee for since 2005. The Estée Lauder Cos. closed on the Tom Ford business earlier this year.
The acquisition of Ic! Berlin, unveiled Wednesday, allows Marcolin to expand its portfolio of luxury brands with an additional proprietary label. The Italian company is integrating around Ic! Berlin 140 employees. The eyewear brand was founded in Berlin in 1996 and manages the design, prototyping and production of its luxury sun and prescription frames internally.
The goal of the acquisition for Marcolin is to increase its expertise in metal craftsmanship and to expand its portfolio of luxury brands, and to strengthen its commercial position in fundamental areas such as Asia and Europe.
Rumors have resurfaced about leading private equity firm PAI Partners looking to exit Marcolin after 11 years. Neither company is commenting on the speculation.
PAI Partners acquired a majority stake in Marcolin in 2012 from a number of investors who included the Marcolin family and brothers Diego and Andrea Della Valle, and delisted the company.
Marcolin was founded in 1961 and is based in Longarone, in Italy’s Veneto region, which is known for being an eyewear manufacturing hub. It is led by chief executive officer and general manager Fabrizio Curci.
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