Other Europe

The Other Europe segment includes the business units that operate in the Nordics, 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 Czech Republic, Estonia, Finland, Hungary, Italy, Poland and Portugal. Key banners include Avanzi in Italy with 177 stores, Multiopticas in Portugal with 193 stores, Vision Express in Poland, Hungary and Bulgaria with 221 stores, as well as Synoptik in Sweden and Denmark with 223 stores. At the end of 2015, there were 1,707 stores in the Other Europe segment, an increase from 1,660 stores in 2014.

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

Revenue

In Other Europe, revenue increased by 19.5% to €875 million in 2015 (2014: €732 million), or 20.8% at constant exchange rates. Organic revenue growth and comparable growth were 4.3% and 3.2% respectively. Within the segment, most markets showed a solid performance during the year.

Adjusted EBITDA

Adjusted EBITDA in the Other Europe segment increased by 18.1% to €135 million (2014: €114 million) or 19.4% at constant exchange rates. The adjusted EBITDA margin decreased 19 bps to 15.4% as organic EBITDA margin expansion was more than offset by the negative impact from acquisitions.