Indo's net consolidated income rose by 15.8 percent last year to e2,216,000, despite a 5.6 percent sales decline to e124.9 million, thanks to numerous initiatives started in the last 3 years under the management of Antoni Olivella, resulting among other things in reductions of 12 percent in purchasing costs and 30 percent in inventories over the period.

Aside from the introduction of new equipment and new value-added products, the leading Spanish group start up last year new logistic processes, stepped up foreign manufacturing operations, reduced bank debt by e13.2 million, instituted new cost controls and stopped a previous policy of offering discounts and generous payment conditions to Spanish retailers.

Due in part to this new policy, domestic dropped by 7.96 percent to e98,231,000, but sales elsewhere grew by 5.92 percent, with the foreign sales ratio up from 19 to 21 percent. Indo's market share in Spain evidently decreased. According to the Spanish Association of Optics Manufacturers and Distributors (AEO), the country's optical market rose by 4.4 percent in 2001, with increases of 2.4 percent in the 1st half and 6.4 percent in the 2nd half of the year.

On the other hand, the group's EBITDA (gross operating income before depreciation, interest and tax) increased by 32 percent last year and reached a margin of 9.41 percent. Operating income before interest and tax (EBIT) surged by 202 percent to e3,914,000.

Indo's total sales of lenses were up 2.51 percent to e66,150,000, representing half of its total business. Sales of organic progressive lenses grew by 18 percent, following the introduction last year of Admira, which claims the widest field of vision. Sales of high-index organic lenses were up 52 percent in units and 76 percent in value, thanks to Indo's successful launch of the ultra-thin Ultrafin 1.6 lens, whose sulphur-free polymer allows the add

A new automated warehouse for the distribution of lenses was opened near Barcelona one year ago. With the help of its own SAP information processing system, Indo began last year to accept real-time lens orders over the internet in Spain and France, and the process is being extended to other markets in the course of 2002.

The group's sales of frames were off 12.57 percent to e26,758,000, due no doubt in part to the loss of Calvin Klein Eyewear's distribution in Spain. This was partly offset by 29 percent sales increases for Indo's Carolina Herrera and Paco Rabanne XS lines. Its sales of Guess eyewear grew at the same pace. Furthermore, among other new frame launches, Indo introduced at the end of last year a new Purification Garcia collection as well De Rigo's Givenchy and Sting lines on the Spanish and Portuguese markets.

Meanwhile, Indo is completing the transfer to its 2-year-old frame factory in China of all its technical facilities for frame production, including the construction of tools for new frame models. Production levels at the plant, which is yielding promising results, rose by 10.2 percent last year to 312,000 frames. It's expected to grow further to 470,000 frames this year, 560,000 frames in 2003 and 660,000 frames in 2004.

Indo's sales of capital equipment, which is Indo's most profitable business, declined by 13.36 percent to e31,249,000 in 2001, but exports increased by 8 percent to 35.4 percent of the total amount, consolidating Indo's presence in Europe and North America and giving it entry into new markets such as The Netherlands, Yugoslavia, Ecuador and Costa Rica. In Spain, Indo suffered from an estimated 16 percent drop in new openings of optical shops, but it outfitted 67 percent of all the new shops and generated extra sales of e12.1 million from an exchange program for used equipment. In addition, its sales of fixtures of optical stores grew by 19.8 percent to e2.77 million.

Indo claims to be still the world's 4th largest supplier of lens edging equipment, with a market share of at least 8 percent, and it's targeting a 15 percent share in 3 years' time. Early last year, Indo launched a new edging machine, Maxima Speed, which is regarded as the fastest one of the kind on the market. It was nominated last November for the OLA Awards of excellence as best finishing equipment. Along with other Indo edging machines, it's now being promoted in an artistic context, based on a special presentation organized during Madrid's ExpoOptica last March in the city's Thyssen-Bornmizsa Museum.