Chapters
Annual Report 2018

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 LatinAmerica with number one positions in Argentina, Chile, Colombia and Uruguay. In Asia, GrandVision is well positioned in China, India, Russia and Turkey.

During 2018, the store network increased by19 to1,796 mainly through network expansion, particularly in Mexico, Turkey and the United States.

Revenue

The Americas & Asia segment achieved revenue growth of 8.8% at constant exchange rates. Comparable growth and organic growth reached 9.4% and 8.7%, respectively, with particularly strong comparable growth in Colombia, Mexico, Russia and Turkey.

However, reported revenue decreased by 4.1% to €459 million in FY18 (FY17: €479 million) due to negative currency translation effects resulting from the depreciation of a number of currencies with a particularly strong impact from the Turkish lira. Overall, the impact of foreign currency exchange fluctuations was -12.8%, or €61 million.

Adjusted EBITDA

Adjusted EBITDA increased to €20 million in FY18 (FY17: €11 million). During the year strong underlying organic EBITDA growth of more than €15 million was partially reduced by a negative currency a translation effect of €6 million. The loss in the United States was reduced during the year as operational improvements were offset by the cost of store openings and the introduction of a new POS system in the fourth quarter.

The adjusted EBITDA margin was 4.3% compared to 2.2% in FY17.