LensCrafters 2013 Annual Report Download - page 14

9
RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED DECEMBER 31, 2013 AND 2012
In accordance with IFRS
Three months
ended
December
31
,
(Amounts in thousands of Euro)
2013
% of
net sales 2012
*
% of
net sales
Net sales
1,645,891 100.0% 1,632,298 100.0%
Cost of sales 590,470 35.9% 567,065 34.7%
Gross profit 1,055,421
64.1% 1,065,233 65.3%
Selling 543,842 33.0% 564,729 34.6%
Royalties 35,483 2.2% 26,949 1.7%
Advertising 114,960 7.0% 100,745 6.2%
General and administrative 197,059 12.0% 211,740 13.0%
Total operating expenses 891,343 54.2% 904,163 55.4%
Income from operations 164,078
10.0% 161,071 9.9%
Other income/(expense)
Interest income 3,419 0.2% 4,115 0.3%
Interest expense (25,260) (1.5%) (31,975) (2.0%)
Other—net (2,337) (0.1%) (2,811) (0.2%)
Income before provision for income taxes 139,900
8.5% 130,400 8.0%
Provision for income taxes (113,586) (6.9%) (54,903) (3.4%)
Net income 26,314
1.6% 75,497 4.6%
Attributable to
—Luxottica Group stockholders 25,941 1.6% 74,948 4.6%
—non-controlling interests 373 0.0% 549 0.0%
NET INCOME 26,314
1.6% 75,497 4.6%
* Starting from January 1, 2013 the Group adopted IAS 19 revised “Employee benefits”, which requires retrospective
application. Accordingly, the 2012 comparative information has been restated based on the new standard. As a result
income from operations and net income attributable to Luxottica Stockholders decreased in the fourth quarter of
2013 by Euro 2.9 million and Euro 1.8 million, respectively. In the fourth quarter of 2013 the Group reclassified
ceratin warehouse and freight-in shipping expenses of certain subsidiaries from operating expenses, primarily
general and administrative, to cost of sales. The reclassification totaled Euro 16.8 million Euro 13.2 million in the
fourth quarter of 2013 and 2012, respectively.
In the fourth quarter of 2013, the Group incurred non-recurring expenses of (i) Euro 26.7 million for the tax audits
relating to Luxottica S.r.l. (fiscal year 2007), and (ii) Euro 40.0 million for the tax audit relating to Luxottica S.r.l. (fiscal
years subsequent to 2007). In the same period of 2012, the Group recognized non-recurring expenses of Euro 10 million for
the tax audit relating to Luxottica S.r.l. (fiscal year 2007).
The Group’s net income attributable to Luxottica Group stockholders adjusted to exclude the above non-recurring
items woud be as follows:
Adjusted Measures
18
Q4 2013
% of
net sales Q4 2012
% of
net sales
%
change
Adjusted Net Income attributable to Luxottica Group
Stockholders 92,641
5.6% 84,925 5.2% 9.1%
Net Sales. Net sales increased by Euro 13.6 million, or 0.8 percent, to Euro 1,645.9 million in the three months
ended December 31, 2013 from Euro 1,632.3 million in the same period of 2012. Euro 32.9 million of such increase was
18
For a further discussion of Adjusted Measures, see page 28—“Non-IFRS Measures.”