PARIS (Reuters) - EssilorLuxottica (PA:ESLX) said on Friday it expected continued profit growth this year after posting stronger 2019 results, benefiting from demand across its key markets, and played down fears related to the coronavirus outbreak.
The company, formed in 2018 from the merger of French lens maker Essilor and Italian eyewear group Luxottica, said adjusted net profit, which strips out acquisitions and other costs, rose 4.8% at constant exchange rates to 1.94 billion euros ($2.18 billion) in 2019, enabling it to exceed targets.
EssilorLuxottica said the coronavirus spread, however, hurt the company's business in Greater China, which represents about 5% of its total revenue.
"In terms of production, EssilorLuxottica plants in China are currently operating at slightly reduced capacity, which is quickly normalizing, while the plants in Italy and all other locations are currently running at full capacity," the group said.
EssilorLuxottica, which expects the epidemic to fade this year, forecast sales to rise 3%-5% and adjusted net profit growth to reach up to 1.2 times its revenue growth.