EssilorLuxottica SA, the owner of the Ray-Ban and Oakley brands, reported margins just below analyst expectations as the French-Italian eyewear maker fought higher costs and persistent inflation by increasing synergies and posting solid revenue growth.

Adjusted operating margin for 2023 reached 16.5 percent at current exchange rates, slightly below Bloomberg consensus of 16.9 percent, the firm said in a statement Wednesday.

The company confirmed its target of mid-range single-digit annual revenue growth from 2022 to 2026 at constant exchange rates. It said it expects adjusted operating profit as a percentage of revenue in the range of 19-20 percent by the end of that period.

The past year saw major investments to support new product categories — including the Stellest myopia range and Ray-Ban’s Meta wearables — as the company added established brands like Moncler and Jimmy Choo to its portfolio, CEO Francesco Milleri said.

EssilorLuxottica, formed from the merger of two of Europe’s most prominent eyewear makers, is the global leader in production and sales of prescription eyeglasses, sunglasses and contact lenses.

Sales for the fourth quarter totaled €6.25 billion ($6.7 billion). Asia-Pacific and Latin America were the best performers over the quarter with 10.3 percent and 12.7 percent growth respectively.

EssilorLuxottica’s proposed dividend rose 22 percent to €3.95 compared with a year earlier.

By Antonio Vanuzzo and Daniele Lepido

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