Chapters
Annual Report 2018

Other Europe

The Other Europe segment includes the business units that operate in Northern, Eastern and Southern Europe.

These business units manage single or multiple optical retail banners in one or several countries. The banners are predominantly comprised of own stores and, to a lesser extent, franchise stores.

In many markets, GrandVision banners have market leading positions, e.g. in the CzechRepublic, Estonia, Finland, Hungary, Italy, Poland and Portugal. Key banners include GrandVision with 287 stores across Italy, Multiopticas in Portugal with 216 stores, Vision Express in Poland, Hungary and Bulgaria with 260 stores, as well as Synoptik in Sweden and Denmark with 242 stores.

At the end of 2018, there were 1,912 stores in the Other Europe segment, an increase from 1,876 stores in 2017.

The optical retail markets in the Other Europe segment are characterized by a lower level of maturity than the G4 segment, particularly in Eastern Europe.

GrandVision has been developing growth opportunities in this segment by gaining scale in these markets through

the expansion of its existing store base, as well as through acquisitions such as Visilab in Switzerland at the end of 2017.

Revenue

In the Other Europe segment, revenue increased by 15.8% at constant exchange rates to €1,130 million in FY18 (FY17: €990 million) with organic and comparable growth of 3.3% and 2.7%, respectively.

Revenue and comparable growth was achieved across all businesses clusters: Northern, Southern and Eastern Europe. Acquisitions, primarily Visilab in Switzerland, which was acquired at the end of 2017, contributed with 12.5% to the revenue growth.

Adjusted EBITDA

Adjusted EBITDA in the Other Europe segment increased by 13.6% at constant exchange rates to €176 million in FY18 (FY17: €157 million), driven by organic growth of 3.1% and a positive contribution from acquisitions of 10.5%.

The adjusted EBITDA margin decreased by 35 bps to 15.5%, mainly reflecting a weaker performance in Italy during the year.