Annual Report 2017

Americas & Asia

The Americas & Asia segment includes the businesses in Latin America, Asia, Russia, Turkey and the United States. In Latin America, GrandVision operates leading optical retail banners in Argentina, Chile, Colombia, Mexico and Uruguay. Most regions in the Americas & Asia segment have the lowest level of maturity in the GrandVision group.

These optical retail markets have been growing faster on average than the more developed markets. GrandVision is market leader in Latin America with number one positions in Argentina, Chile, Colombia and Uruguay. In Asia, GrandVision is well positioned in China, India, Russia and Turkey.

During 2017, the store network increased by 99 to 1,777 mainly through network expansion, particularly in Mexico and Turkey.

Revenue

In the Americas & Asia segment, revenue grew by 13.2% at constant exchange rates to €479 million in FY17 (FY16: €440 million).

Organic growth was 11.8% and bolt-on acquisitions contributed 1.5% during the year. Comparable growth was 6.5% with a particularly strong performance in Chile, Mexico and Turkey.

The US business delivered both revenue and comparable growth in 2017. However, the longer than expected organizational rebuild has led to a negative EBITDA of €15 million during the year and resulted in the previously announced non-cash goodwill impairment of €38 million. In 2018, we expect to see the first benefits of this restructuring through an improved top and bottom line performance.

Adjusted EBITDA

Adjusted EBITDA remained stable at €11 million in FY17 as strong underlying organic EBITDA growth of €18 million was offset by a negative currency translation effect of €3 million and the operating result of the United States. The adjusted EBITDA margin was 2.2% compared to 2.4% in FY16. Excluding the loss in the US, adjusted EBITDA more than doubled to €26 million due to the strong underlying development in the segment.

GrandVision by Optica Lux in Uruguay