MILAN—The board of Marcolin S.p.A. (MCL.MI) approved the company’s consolidated financial statements for the period ending Dec. 31, 2007 and cited the company’s “excellent growth in the company’s luxury and fashion segments and full recovery of profitability of the ‘core’ eyewear and sunwear business.”

The Group posted revenue of €182.3 million for the 12 months ending December, representing an increase of 15.8 percent over 2006 period of €157.4 million. At constant exchange rates, the increase would have been 18.3 percent.

The company reported that net sales in the U.S. were €40 million, an improvement of 13.7 percent from the prior year. The company’s sales in the U.S. represented about 21.9 percent of its total revenues. The company noted that the U.S. and the "rest of the world" contributed nearly 50 percent to growth, with Europe contributed the remaining 50 percent; the Italian market remained essentially unchanged with respect to the previous year.

Large increases in terms of sales were reported by the French (+70.6 percent), Spanish (+28.2 percent) and German (+51.8 percent ) subsidiaries. There was also solid growth in revenue in the Middle East (+58 percent) and Eastern European (+42 percent) markets.

Marcolin Group’s fiscal year 2007 closed with EBITDA of €10.6 million (doubling the €5.3 million at year-end December 2006), accounting for 5.8 percent of sales (3.4 percent on sales at year-end 2006). The company said the improvement in EBITDA over fiscal 2006 was due primarily to the improved profitability of the sales of Marcolin USA, which increased its EBITDA by €3.3 million, a lower level of royalty costs and an increase in overheads and administrative costs.

Marcolin said its sunglass business improved by €5.9 million in EBITDA, increasing from €9.4 million in the prior fiscal year to reach €15.3 million, equal to 9.3 percent of sales with a percentage increase of 63 percent.

However, the sports eyewear area reported EBITDA falling by €0.6 million, slipping from a negative value of €4.1 million to a negative value of €4.7 million.

Marcolin’s consolidated net earnings were negative for €6.9 million (against a loss of €13.3 million in Dec. 31 2006) primarily affected by the losses posted by Cébé. In fact, overall, the negative impact of Cébé on the Marcolin Group’s 2007 income statement was equal to €9.2 million, €3.6 million of which arising from the charges incurred in reorganization and €5.6 million generated by the operating losses recorded in 2007 by the French branch.

The company emphasized the return to profitability of the Group’s “core” business (sunglasses and vision eyewear, representing 90 percent of Group revenues), which recorded a positive value of €2.4 million compared with a loss of €2.5 million at year-end 2006.

The net consolidated financial position for the Marcolin Group (including Cébé) €36.2 million at year-end 2007, higher than the year ended Dec. 31 2006 when the Group reported net debt of €32.1 million. The financial position was negatively affected by the absorption of cash for investments.

Marcolin’s Managing Director, Massimo Saracchi, commented, “Despite the far from favorable economic and currency situation, I am confident that the year 2008 will be marked by additional growth in sales and improved profitability."