CHARENTON-LE-PONT, France—Essilor International (ISIN: FR 0000121667) announced consolidated revenue of €3,074.5 million for the year ended Dec. 31, 2008, representing a reported 5.7 percent increase on the previous year. Excluding the currency effect, growth for the year was 9.7 percent.

Despite softness in the ophthalmic market in 2008, particularly during the fourth quarter, Essilor gained new market share by leveraging its product portfolio, managing its networks effectively and increasing its pace of acquisitions.

In the fourth quarter, Essilor’s consolidated revenue rose by a reported 12.6 percent year-on-year (2.2 percent like-for-like) to an estimated €796.7 million. The consolidation of Satisloh and the targeted acquisitions made during the year accounted for a particularly high 8.7 percent of reported growth. Satisloh reported €39.4 million in revenue for the quarter, of which €34.1 million was from outside customers.

As the general economic environment steadily deteriorated during the quarter, the company’s business slowed worldwide, particularly in the U.S. where sales to optical chains declined. Operations in emerging markets continued to enjoy strong growth.

During the fourth quarter, Essilor acquired at least a majority interest in seven new U.S. prescription laboratories, based across the country and representing aggregate full-year revenue of some $60 million. Three of the companies are Varilux distributors: Pech Optical in Iowa ($37 million in revenue); SouthWest Lens in Texas ($5 million); and Collard Rose Optical Laboratory in California ($7.5 million), which has been consolidated since July 2008. Essilor also acquired all outstanding shares of Next Generation Ophthalmics in Minnesota ($3.5 million in revenue), as well as a majority stake in Dependable Optics in New York State (around $2 million). Lastly, Essilor acquired the assets of Hi-Tech Optical and Pinnacle, two Nebraska-based labs with combined revenue of $3 million.

Essilor cited several factors that contributed to its growth, such as a 4.6 percent like-for-like increase in revenue over the year, of which 5.4 percent in the first half and 3.9 percent in the second. This increase reflected a 4.9 percent growth in the corrective lens business, led by volume gains.

Successful new products, in particular the sixth-generation of Transitions variable-tint lenses and the new Crizal AR lenses also boosted revenue. Other factors included a negative 4.0 percent currency effect, a 5.1 percent increase from changes in the scope of consolidation and solid growth in unit sales worldwide. A solid performance in North America resulted from an expansion of Essilor’s U.S. network of prescription laboratories, which enjoyed growing demand from independent eyecare professionals. Economic conditions weighed on business with some of the large optical chains.

Despite the uncertain global economy, Essilor said it expects to see a further increase in revenue at constant exchange rates in 2009, with acquisitions continuing to play a dominant role in driving growth. ■