Revenue Development

Revenue increased by 7.5% to €2,817 million in 2014. At constant currency rates, revenue grew by 8.5% as foreign currency fluctuations affected revenue by -1.0%.

Revenue growth was primarily driven by organic growth of 5.7%. The main driver of organic growth was comparable growth of 4.3%, more than double the level of 2013. In addition, acquisitions had a positive impact of 2.8% on revenue.

In the G4, which is comprised of the four largest European business units of GrandVision, the organic growth of 4.8% was primarily driven by comparable growth of 3.7% and a moderate level of store network expansion. In addition, acquisitions increased revenue by 2.0%, resulting in revenue growth at constant currency of 6.8% in the largest region of the group. In Other Europe, comparable growth of 4.1% and expansion of the existing store network resulted in organic growth of 6.1%. Acquisitions had a positive impact of 1.2% on revenue, resulting in revenue growth at constant currency of 7.3%, in line with the strategic direction to further consolidate these markets.

In Latin America & Asia, comparable growth of 9.4% and continued expansion of the existing store network resulted in organic growth of 11.0%. Acquisitions during the year, including the market entries into Peru, Turkey and China, increased revenue by 12.7%. This resulted in growth at constant currency of 23.7% in this region that at the end of 2014 comprised 20% of GrandVision’s stores.

Revenue development

Revenue in millions of EUR
(unless stated otherwise)

2014

2013

Change
versus
prior year

Growth at constant currency

Organic
growth

Growth from acquisitions

G4

1,820

1,686

8.0%

6.8%

4.8%

2.0%

Other Europe

732

694

5.4%

7.3%

6.1%

1.2%

Latin America & Asia

265

240

10.5%

23.7%

11.0%

12.7%

Total

2,817

2,620

7.5%

8.5%

5.7%

2.8%

Revenue consisted mainly of sales of eye care products to customers through the Group’s network of retail stores and, to a lesser extent, via online channels. The main categories of products sold are prescription eyeglasses, contact lenses and sunglasses. The majority of sales consisted of prescription eyeglasses. Sales volumes in 2014 were positively impacted by commercial execution, enhancing in-store conversion rates and customer loyalty. Global initiatives in purchasing and the supply chain resulted in savings that were largely reinvested in improving the competitiveness of the product offering.

Revenue growth was also achieved in the contact lens category and its share of the overall revenue increased. Growth was achieved across all regions, primarily driven by increasing consumer demand for daily disposable contact lenses.

In line with the strategy to expand the sunglasses category, the proportion of sunglasses in the overall revenue increased, despite poor weather in the key summer months in Southern Europe. The global Solaris sunglasses store-in-store concept increased in number of points of sale across the Group.

Several acquisitions were completed during 2014. In the United Kingdom, 65 stores were purchased from Rayner and 19 stores from Conlons in February and December, respectively. In April, the Robin Look chain, consisting of 20 stores, was purchased in Germany. In Colombia 71 MultiOpticas stores were purchased in February. In August, a majority stake was acquired in Topsa in Peru, with 176 stores.

In September, GrandVision took over HAL’s interests in Atasun in Turkey (96 stores) and in Red Star/GrandVision Shanghai in China (52 stores). In December 2014, GrandVision acquired Angelo Randazzo in Italy (101 stores and 89 points of sale in super- and hypermarkets). Including the contribution from acquisitions made in 2013 (mainly online contact lenses retailer Lenstore.co.uk) the total impact of acquisitions on revenue in 2014 amounted to €72 million, representing 2.8% of revenue growth.