- At a Glance
- Financial Statements
- Other Information
Operational Profit Development
Adjusted EBITDA, which represents EBITDA excluding exceptional and non-recurring items and is GrandVision’s key measure of operational profit, increased in 2014 by 12.3% at constant exchange rates to €449 million.
In 2014, the adjusted EBITDA margin improved by 68 bps to 16.0% from 15.3% in 2013.
The increase in adjusted EBITDA was driven by comparable growth in the existing stores, as revenues and gross profit increased while the increase of store operating cost in the areas of retail personnel cost, marketing and rental expenses was contained.
Adjusted EBITDA in millions of EUR
Growth at constant currency
Growth from acquisitions
Latin America & Asia
Other reconciling items
Operational execution in the stores in the areas of commercial policies, product portfolio, advertising, promotions and network optimization lies at the heart of the 2014 result development. Organic revenue growth was 5.7%, while adjusted EBITDA grew 12.7% organically. All three regions contributed to this development. The impact of currency fluctuations on the total adjusted EBITDA was -0.1%, while acquisitions had an impact of -0.4%, caused by the newly acquired companies in the emerging markets.
Adjusted EBITDA margin (%)
Latin America & Asia
In the G4 segment, adjusted EBITDA increased 11.1% at constant currency and 10.2% organically to €364 million. The adjusted EBITDA margin improved 69 bps to 20.0%. This was mainly the result of comparable growth.
In Other Europe, adjusted EBITDA increased 26.3% at constant currency and 25.0% organically to €114 million. The adjusted EBITDA margin improved 232 bps to 15.6%, improving profitability levels in the direction of the level of the G4 segment.
In Latin America & Asia, the region with less mature markets and operations, the adjusted EBITDA increased 6.6% at constant exchange rates and 108.7% organically to €5 million. The adjusted EBITDA margin decreased 38 bps to 1.9%. The decrease was caused by the acquisitions in this region, which had an impact of -€6 million on the region’s adjusted EBITDA.
Reconciliation EBITA, EBITDA, adjusted EBITDA and operating result
in millions of EUR
% of 2014 revenue
% of 2013 revenue
Depreciation and amortization of software
Amortization and impairments
The other reconciling items primarily consist of corporate costs not allocated to specific regions. These costs increased by 47.6% to €34 million in 2014. The increase was principally driven by expenses related to global corporate initiatives, and to a lesser extent by a slightly higher headcount in corporate positions.
EBITDA increased by 6.3%, from €400 million in 2013 to €426 million in 2014. This increase primarily reflects increased revenues in all segments underpinned by comparable growth, partly offset by the inclusion of exceptional and non-recurring items to a total of €24 million (of which €18 million non-cash) recorded in 2014. No exceptional and non-recurring items have been taken into account for 2013. The EBITDA margin was maintained at 15% of revenue in 2014. EBITA was affected by losses in Spain and in the emerging markets, which amounted to €21 million in the aggregate in 2014, compared with losses of €22 million in the aggregate in 2013. Depreciation and amortization of software increased somewhat as a result of increased capital expenditure in stores and global IT projects as well as from acquisitions. As a percentage of revenue, expenditure was level compared with 2013.
The operating result increased by €19 million, or 6.8%, from €270 million in 2013 to €289 million in 2014, and included the exceptional and non-recurring items amounting to €24 million. The increase in the operating result was primarily due to increased revenue and the achievement of cost synergies as a result of comparable growth, network expansion and cost control in support functions. Goodwill impairment charges of €3 million were taken in 2014, relating mostly to Sunglass Island in Mexico. In 2013, impairment charges amounted to €8 million.