LensCrafters 2014 Annual Report Download - page 55

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Adjusted net sales 2,3
(millions of Euro)
Adjusted EBITDA2,3
and adjusted
operating income 2,3
(millions of Euro)
Adjusted Ebitda2,3
% margin
Adjusted Operating Income2,3
% margin
1,178
15.3%
1,065
14.6%
1,562
20.4%
1,431
19.6%
2013
Adjusted2,3 net income for the full year 2014 amounted to
Euro 687.4 million, up by 11.4% from an adjusted2,3 Euro 617.3
million for 2013, corresponding to adjusted earnings per
share (EPS)2,3 of Euro 1.44 (or US dollars 1.92, at an average
Euro/US$ exchange rate of 1.3285).
Free cash flow2 increased to a record Euro 802 million for the
twelve months ended December 31, 2014 compared with
Euro 648 million3 for the 12 months ended December 31,
2013 as a result of improved profitability and continuous and
efficient working capital management. Consequently, net
debt2 at December 31, 2014 decreased to Euro 1,013 million
(Euro 1,461 million at fiscal year-end 2013), with a net debt/
adjusted EBITDA2,3 ratio of 0.6x compared to 1.0x at fiscal
year-end 2013.
Wholesale Division
In 2014, the Wholesale Division’s net sales rose by 8.6% at
constant exchange rates4 to Euro 3.2 billion. The Division’s
operating income amounted to Euro 725 million, up by 10%
from an adjusted2,3 Euro 658 million in 2013, resulting in an
operating margin of 22.7% (22%2,3 in 2013).
The Division’s performance in 2014 was led by outstanding
growth in North America, with net sales up by 11.2% in US$
which outperformed the market. In Europe5, the Wholesale
Division posted an increase in net sales of 2.5% at constant
exchange rates4 in 2014. Emerging markets continued to
deliver strong sales performance. 2014 marked the first
year of a dedicated subsidiary in Thailand and the entrance
into Malaysia, in line with the Group’s go-direct strategy for
Southeast Asia. In Latin America, Brazil5 maintained a steady
pace with sales up by 17% at constant exchange rates4, soon
to become the second largest wholesale market for the
Group.
Retail Division
In 2014, adjusted2,3 net sales for the Retail Division grew
by 5.4% at constant exchange rates4 to Euro 4.5 billion.
Comparable stores sales6 were up by 4%, largely attributed
to LensCrafters’ progressive improvement throughout
the year and Sunglass Hut’s sustained growth worldwide.
Operating income amounted to Euro 636 million, up by
9% from Euro 586 million in 2013, which translated into an
operating margin of 14.1%2,3 (13.5% in 2013).
In North America, total comparable store sales6 grew by 3.3%
in 2014. LensCrafters, in particular, delivered progressive
improvements in comparable store sales6, which increased
by 1.8% in 2014.
RetailWholesale
3. 
53
2013
7,313
3,194
2,991
4,505
4,321
7, 69 9
2014
2014