PARIS (Reuters) - Essilor (PA:ESSI), the world's largest maker of ophthalmic lenses, forecast 2017 revenue growth of between 3 and 5 percent at constant exchange rates and predicted a higher level of growth and profitability in the second half of the year.
The Paris-based company said the planned launch of products under brands of corrective lenses such as Varilux, Crizal and Transitions would support performance along with the development of its sunwear activities and online sales.
Essilor and Italy's Luxottica (MI:LUX) unveiled earlier this year a 46 billion euros ($48.88 billion) merger to create a global eyewear powerhouse with annual revenue of more than 15 billion euros.
Essilor, which published its 2016 results on Friday, said the transaction was still subject to the approval of its shareholders and clearance from various regulators. It gave no other details.
The group said fourth-quarter revenue rose 3 percent at constant exchange rates to 1.809 billion euros. Analysts polled by Reuters in partnership with Inquiry Financial had on average been expecting sales of 1.787 billion euros.
Contribution from operations, a revenue figure that strips cost of sales and operating expenses, stood at 18.6 percent of total sales for the full year compared with 18.8 percent in 2015.
Essilor said this indicator was expected at around 18.5 percent in 2017.
"The group expects a higher level of growth and profitability in the second half of the year versus the first half," Essilor said in a statement.
The board will propose a dividend of 1.5 euros per share, up 35.1 percent.
($1 = 0.9411 euros)