Latin America & Asia

in millions of EUR
(unless stated otherwise)

2014

2013

Change versus
prior year

Growth at constant currency

Organic growth

Growth from acquisitions

Revenue

265

240

10.5%

23.7%

11.0%

12.7%

Comparable growth (%)

9.4%

3.1%

630bps

Adjusted EBITDA

5

6

-7.8%

6.6%

108.7%

-102.1%

Adjusted EBITDA margin (%)

1.9%

2.3%

-38bps

Number of stores (#)

1,175

758

55.0%

Number of employees (average FTE)

6,120

3,958

54.6%

The Latin America & Asia region consists of the business units that operate in Latin America and Asia, which includes Turkey and Russia. GrandVision operates leading optical retail banners in the Latin America & Asia segment. At the end of 2014, there were 1,175 stores in this region, predominantly own stores.

Latin America & Asia has the lowest level of maturity of GrandVision’s regions. Markets have been growing faster on average than in Europe. GrandVision has been investing in this region to capture the growth opportunities offered.

Revenue

Revenue increased by 10.5% to €265 million in 2014, of which -13.2% is the negative impact from weaker Latin American currencies and the Russian ruble against the euro. Therefore, at constant currencies revenue growth stood at 23.7%. The segment saw comparable growth at 9.4% with contributions from all markets, several of which reported double-digit growth. The one exception was Sunglass Island in Mexico which was being repositioned for growth during the year. Revenue growth from store network expansion took place mainly in Mexico and Chile. Revenue growth from acquisitions amounted to 12.7%, mainly due to the acquisition of optical retailers MultiOpticas in Colombia, Topsa in Peru, Atasun in Turkey and Red Star/GrandVision Shanghai in China. The number of stores increased from 758 to 1,175 at year-end 2014 as a result of the acquisitions and, to a lesser extent, store openings.

Adjusted EBITDA

Adjusted EBITDA increased by 6.6% at constant exchange rates and 108.7% organically, to €5 million in 2014. Acquisitions had a profit-diluting effect on the region, offsetting contributions from Brazil, Colombia and Russia. The movements in adjusted EBITDA primarily reflect comparable growth, as well as a positive impact from store network expansion and a negative impact from acquisitions which are in their initial investment phase. The adjusted EBITDA margin decreased to 1.9% in 2014 compared with 2.3% in 2013. Excluding the 2014 acquisitions, the adjusted EBITDA margin would have come in at 4.6%.