The results for first-half of 2018 confirm a downward trend for the Fedon Group, a leading Italian eyeglass-case manufacturer that is trading publicly. After a 5.88 percent decline in turnover suffered in 2017, it had to endure a further decline of 5.5 percent for the first six months of this year, down to €31.8 million.
Without giving a specific breakdown, the company indicated that high revenues from leathergoods could not compensate for a steeper drop in the optical sector. Leathergoods accounts for a mere 10 percent of the company's global turnover.
Fedon also reported an Ebitda loss of almost €1.9 million for the first half of this year, against positive Ebitda of €1.4 million in the same period of last year, but it is now negative at almost €1.9 million. After amortization, the operating results showed an negative Ebit of about €3 million compared with €495,000 in the first half of 2017.
Fedon still has net profits of €5,000 in the first six months of last year, but the company suffered a net loss of €3.2 million in the latest period. Net debt has risen from €7.3 million to €10.2 million.
The group attributes these negative results to unfavorable exchange rates and to strong price pressure in the optical sector. We interpret this to mean especially the growing competition from the Far East, where producers of eyeglass cases are beginning to offer products of acceptable quality at very low prices.
The company said that it is embarking on a restructuring phase intended to improve its results.