GrandVision market update relating to COVID-19 outbreak and postponement of AGM
Schiphol - 20 March 2020. GrandVision N.V. (EURONEXT: GVNV) is providing an update today on the impact of COVID-19 on its business, along with the measures it is taking to actively manage the risks to its customers, employees and operations. In addition, GrandVision announces that it has decided to postpone its AGM to Tuesday 30 June 2020 in order to protect the wellbeing of its employees and shareholders.
Stephan Borchert, CEO of GrandVision said: “It has become fully clear that with the current developments on the COVID-19 outbreak we are faced with extraordinarily challenging times ahead of us.
Our entire focus lies on protecting the safety and wellbeing of our employees and customers as well as on managing the risks to our operations and financial situation.
We are continuously evaluating the best ways to protect our employees and customers in all the markets we operate in from the spread of the COVID-19 virus. Therefore, we have put substantial Business Continuity Plans into action. In addition, we are working closely with local authorities and have closed our stores in those countries that have implemented strict measures to contain the spread of the coronavirus.
We have taken immediate action to mitigate the impact on GrandVision’s financial position, in particular by rigid management of cost and cash outflow. Our net debt position and the liquidity headroom under our revolving credit facility are solid.
As the situation continuous to develop rapidly, the outcome and ultimate business impact is uncertain. 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 the year 2020.
I continue to strongly believe in the underlying resilience of our business the structural drivers of our industry and the strength of our brands. But at this moment I am especially proud of the efforts and commitments of by our employees in these testing and uncertain times.
We remain confident that the announced acquisition by EssilorLuxottica of HAL’s 76.72% interest in our company will be closed within 12 to 24 months from the announcement of the transaction on 31 July 2019. Together with EssilorLuxottica and HAL we are working on fulfilling all requirements that are necessary towards closing the transaction.”
Business and Financial Update
In January and February 2020, comparable growth sales growth was 5.5%. In the first two weeks of March comparable growth continued to be positive with growth across most of our core markets.
Going forward, the company estimates that sales will be negatively affected mainly as a consequence of the continued spread of the virus. As of today, due to decisions by local authorities, all of GrandVision’s stores are temporarily closed in a number of markets including Belgium, France, Italy, Poland and Spain. In most other markets the store networks remain fully or partially open, however sales are negatively impacted up to a high double digit percent range. All of GrandVision’s online platforms, although still a small part of our current turnover, remain operational and are showing robust growth.
GrandVision has formed an internal taskforce to continuously monitor and proactively manage risks relating to COVID-19 throughout its business, as well as to ensure that publicly available advice is followed and that appropriate safety measures are quickly implemented for our employees and customers.
At this moment priority is to preserve the operations of our business and safeguard its financial health. The company has started to implement measures to reduce operating costs including adjustment of marketing activities and other non-business critical discretionary spend, adjust our procurement activities, optimize working capital and reduce all non-business critical capital expenditures. Also, we have prepared for the possibilities of tax payment deferrals as well as for other government relief measures such as short-term unemployment schemes. In countries where our store network has been closed, we have started to engage with our landlords to discuss lease payments.
As of closing February 2020, GrandVision had a net debt position of €750m with borrowings of €894 and cash and cash equivalents of € 154m million. GrandVision has significant financial headroom under its existing financing arrangements. In 2019 the Company renewed a Revolving Credit Facility (RCF) of € 1,200 million until 2024 provided by a total of 15 relationship banks. It contains 2 extension options of 1 year each (5+1+1). As of closing of February 2020, a total of € 385 million was drawn under the RCF with a further € 509m obtained in short term flexible finance. GV has significant headroom in relation to its financial covenants and has started to draw from the RCF, adding considerable immediately available liquidity to the Company.
Based on these measures, and a simulated average revenue reduction of 30 to 60% for a period of up to 6 months and a current net debt position of € 750 million, GrandVision is confident to achieve a year-end 2020 net debt position below € 1,000 million.
GrandVision therefore remains confident that under a set of assumptions as laid out above, its net debt will remain below the € 993 million limit upon which the transaction with EssilorLuxottica is conditional.
As disclosed at the time of the deal and half year results announcements, our main shareholder HAL has the right to provide a capital injection to GrandVision to cure a potential net debt position in excess of that limit at closing of the transaction.
Following recent government actions and the heightened impact and uncertainty of changes in the magnitude, duration and geographic reach of COVID-19, we are not yet able to predict the impact of COVID-19 on our 2020 full year results.
Status of transaction with EssilorLuxottica
GrandVision continues to support EssilorLuxottica with the shared objective to obtain regulatory approval for the closure of the acquisition by EssilorLuxottica of HAL’s 76.72% interest in GrandVision within 12 to 24 months from the announcement date of 31 July 2019. The currently expected impact of COVID-19 on the business and financial position of GrandVision is not expected to impact the transaction, and GrandVision believes that the transaction will be closed within the previously announced timetable.
Postponement of Annual General Meeting
In view of the recent developments surrounding the COVID-19 virus and GrandVision’s concern for the health of its shareholders, management, supervisory board members and employees, the AGM that was to be held on 24 April 2020 has been postponed to 30 June 2020. According to the statutory notice period, the AGM agenda will be published on 19 May 2020.
One Liberty Plaza - 165 Broadway
NY 10006 New York
GlobeNewswire is one of the world's largest newswire distribution networks, specializing in the delivery of corporate press releases financial disclosures and multimedia content to the media, investment community, individual investors and the general public.
Subscribe to releases from GlobeNewswire
Subscribe to all the latest releases from GlobeNewswire by registering your e-mail address below. You can unsubscribe at any time.
Latest releases from GlobeNewswire
Nordisk næringsliv fokuserer på innovasjon og forbedring av kundeopplevelsen27.1.2020 10:00:00 CET | Pressemelding
Rapporten ISG Provider Lens™ viser at selskaper i regionen henvender seg til leverandører av digitale forretningstjenester for hjelp med analyse, kunstig intelligens og andre teknologier STOCKHOLM i Sverige, Jan. 27, 2020 (GLOBE NEWSWIRE) -- Næringslivet i de nordiske landene fokuserer på å forbedre kundeopplevelsen og innovasjonen, og kontakter leverandører av digitale forretningstjenester for å nå målene sine. Dette viser en ny rapport som ble publisert i dag av Information Services Group ( ISG ) (Nasdaq: III ), et verdensledende teknologisk forsknings- og rådgivningsselskap. Rapporten 2019-2020 ISG Provider Lens™ Digital Business – Solutions and Service Partners for Norden viser at bedrifter i regionen omfavner teknologier som dataanalyse, kunstig intelligens, tingenes internett og blokkjeder for å levere kvalitetstjenester til kundene sine og for å skille ut seg fra konkurrenter. «Nordiske bedrifter søker transformasjonstjenester fra IT-leverandører for ikke bare å bli veiledet gje
UPM commits to UN Business Ambition for 1.5°C to mitigate climate change27.1.2020 10:00:00 CET | Press release
(UPM, Helsinki, 27 January 2020 at 11:00 EET) – UPM commits to the United Nations Global Compact’s Business Ambition for 1.5°C, joining leading companies in a promise to pursue science-based measures to limit global temperature rise to 1.5°C. UPM will strive to mitigate climate change and drive value creation through innovating novel products, committing to a 65% CO2 emission reduction and by practicing sustainable forestry. The 1.5°C ambition is a response to increasing concern about the severe consequences of a failure to stop global warming. UPM is among the first global forest industry companies making this commitment. “UPM has a unique opportunity to make a positive impact and contribute to mitigating climate change by tangible actions. We innovate climate-positive products and turn them into growing businesses. At the same time, we limit risks from climate mitigation policies and physical impacts of changing climate. This is important for the long-term value of the company,” says
Valmet to supply a board machine rebuild to Umka in Serbia27.1.2020 10:00:00 CET | Press release
Valmet Oyj’s press release on January 27, 2020 at 11:00 a.m . EET Valmet will supply a board machine rebuild to Umka Cardboard Mill in Serbia. The main target of the rebuild is to increase the customer’s production capacity. The start-up of the rebuilt paper machine PM 1 is scheduled for the second half of 2021. The order is included in Valmet's orders received of the fourth quarter 2019. The value of the order will not be disclosed. The total value of an order of this type is typically around EUR 15-20 million. "This rebuild is one of the most important strategic decisions we have made in the course of 80 years long history of the mill. We are pleased that this project is going to be completed by Valmet, a global leader in the supply of process technology in the paper industry. I strongly believe in the success and bright future of Umka Cardboard Mill, with planned capacity of over 200,000 tonnes, further quality improvements and wider product portfolio,” says Milos Ljusic, Managing D
Nordic Enterprises Focus on Innovation and Improving Customer Experience27.1.2020 10:00:00 CET | Press release
ISG Provider Lens™ report finds companies in the region turning to digital business services providers for help with analytics, artificial intelligence and other technologies STOCKHOLM, Sweden, Jan. 27, 2020 (GLOBE NEWSWIRE) -- Enterprises in the Nordic countries are focused on improving customer experience and enhancing innovation, and they are turning to digital business service providers to achieve their goals, according to a new report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm. The 2019-2020 ISG Provider Lens™ Digital Business – Solutions and Service Partners Report for the Nordics finds enterprises in the region embracing technologies such as data analytics, artificial intelligence, the Internet of Things and blockchain to deliver quality services to their customers and to differentiate themselves from competitors. “Nordic enterprises are seeking transformation services from IT providers to not only ta
Nordiska företag fokuserar på innovation och förbättrar kundupplevelsen27.1.2020 10:00:00 CET | Pressemelding
Rapport från ISG Provider Lens™ visar att företag i regionen vänder sig till leverantörer av digitala företagstjänster för hjälp med analys, artificiell intelligens och annan teknik STOCKHOLM, Sverige, Jan. 27, 2020 (GLOBE NEWSWIRE) -- Företag i Norden är inriktade på att förbättra kundupplevelse och innovation, och de vänder sig till leverantörer av digitala företagstjänster för att uppnå sina mål, enligt en ny rapport publicerad idag av Information Services Group ( ISG ) (Nasdaq: III ), ett ledande företag inom global teknikforskning och -rådgivning. Rapporten Digital verksamhet – lösningar och servicepartners2019–2020 från ISG Provider Lens™ för Norden visar att företag i regionen anammar teknik som dataanalys, artificiell intelligens, sakernas internet och blockkedja för att leverera kvalitetstjänster till sina kunder och för att utmärka sig bland konkurrenterna. ”De nordiska företagen söker transformationstjänster från IT-leverantörer för att inte bara ta dem genom sina digitala r
Roche submits supplemental Biologics License Application to the FDA for Tecentriq in combination with Avastin for the most common form of liver cancer27.1.2020 07:00:00 CET | Press release
·Application is being reviewed under FDA’s Real-Time Oncology Review pilot programme Basel, 27 January 2020 – Roche (SIX: RO, ROG; OTCQX: RHHBY) today announced the completion of a supplemental Biologics License Application (sBLA) submission to the US Food and Drug Administration (FDA) for Tecentriq® (atezolizumab) in combination with Avastin® (bevacizumab), for the treatment of people with unresectable hepatocellular carcinoma (HCC) who have not received prior systemic therapy. The FDA is reviewing the application under the Real-Time Oncology Review pilot programme, which aims to explore a more efficient review process to ensure safe and effective treatments are available to patients as early as possible. In July 2018, the FDA granted Breakthrough Therapy Designation for Tecentriq in combination with Avastin in HCC based on data from an ongoing Phase Ib trial. “Liver cancer is the most rapidly increasing cause of cancer-related death in the United States. In the IMbrave150 study, Tece