March 20, 2020 / 7:29 AM / 2 months ago

BRIEF-Grandvision Expects Not To Be Able To Deliver At Least 5% Revenue, EBITA Growth In 2020

March 20 (Reuters) - GRANDVISION SCA:

* GRANDVISION MARKET UPDATE RELATING TO COVID-19 OUTBREAK AND POSTPONEMENT OF AGM

* ON CORONAVIRUS: WE HAVE PUT SUBSTANTIAL BUSINESS CONTINUITY PLANS INTO ACTION

* BASED ON OUR CURRENT RISK ANALYSIS, GRANDVISION NOW EXPECTS NOT TO BE ABLE TO ACHIEVE ITS MEDIUM TERM OBJECTIVES OF DELIVERING AT LEAST 5% REVENUE AND EBITA GROWTH FOR YEAR 2020

* CONFIDENT THAT ANNOUNCED ACQUISITION BY ESSILORLUXOTTICA OF HAL’S 76.72% INTEREST IN OUR COMPANY WILL BE CLOSED WITHIN 12 TO 24 MONTHS FROM ANNOUNCEMENT OF TRANSACTION ON 31 JULY 2019

* WE HAVE TAKEN IMMEDIATE ACTION TO MITIGATE IMPACT ON GRANDVISION’S FINANCIAL POSITION, IN PARTICULAR BY RIGID MANAGEMENT OF COST AND CASH OUTFLOW

* IN JANUARY AND FEBRUARY 2020, COMPARABLE GROWTH SALES GROWTH WAS 5.5%

* REMAINS CONFIDENT THAT ANNOUNCED ACQUISITION BY ESSILORLUXOTTICA OF HAL’S 76.72% INTEREST IN OUR COMPANY WILL BE CLOSED WITHIN 12 TO 24 MONTHS FROM ANNOUNCEMENT OF TRANSACTION ON JULY 31

* IN FIRST TWO WEEKS OF MARCH COMPARABLE GROWTH CONTINUED TO BE POSITIVE WITH GROWTH ACROSS MOST OF OUR CORE MARKETS

* GOING FORWARD, COMPANY ESTIMATES THAT SALES WILL BE NEGATIVELY AFFECTED MAINLY AS A CONSEQUENCE OF CONTINUED SPREAD OF VIRUS

* ALL OF GRANDVISION’S STORES ARE TEMPORARILY CLOSED IN A NUMBER OF MARKETS INCLUDING BELGIUM, FRANCE, ITALY, POLAND AND SPAIN

* AS OF CLOSING FEBRUARY 2020, GRANDVISION HAD A NET DEBT POSITION OF €750M

* WE ARE NOT YET ABLE TO PREDICT IMPACT OF COVID-19 ON OUR 2020 FULL YEAR RESULTS

* IN MOST OTHER MARKETS STORE NETWORKS REMAIN FULLY OR PARTIALLY OPEN, HOWEVER SALES ARE NEGATIVELY IMPACTED UP TO A HIGH DOUBLE DIGIT PERCENT RANGE

* AS OF CLOSING FEBRUARY 2020, CASH AND CASH EQUIVALENTS OF € 154M MILLION

* ALL OF GRANDVISION’S ONLINE PLATFORMS, ALTHOUGH STILL A SMALL PART OF OUR CURRENT TURNOVER, REMAIN OPERATIONAL AND ARE SHOWING ROBUST GROWTH

* ON CORONAVIRUS: NEW AGM AGENDA WILL BE PUBLISHED ON 19 MAY 2020

* AS OF CLOSING FEB 2020, TOTAL OF € 385 MILLION WAS DRAWN UNDER THE RCF WITH A FURTHER € 509M OBTAINED IN SHORT TERM FLEXIBLE FINANCE

* GRANDVISION IS CONFIDENT TO ACHIEVE A YEAR-END 2020 NET DEBT POSITION BELOW EUR 1,000 MILLION

* COMPANY STARTED TO IMPLEMENT MEASURES TO REDUCE OPERATING COSTS, ADJUST OUR PROCUREMENT ACTIVITIES, OPTIMIZE WORKING CAPITAL AND REDUCE ALL NON-BUSINESS CRITICAL CAPITAL EXPENDITURES

* GRANDVISION THEREFORE REMAINS CONFIDENT THAT UNDER SET OF ASSUMPTIONS AS LAID OUT ABOVE, ITS NET DEBT WILL REMAIN BELOW EUR 993 MILLION LIMIT UPON WHICH TRANSACTION WITH ESSILORLUXOTTICA IS CONDITIONAL Source text for Eikon: Further company coverage: (Gdansk Newsroom)

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