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 Czech Republic, Estonia, Finland, Hungary, Italy, Poland and Portugal. Key banners include GrandVision with 277 stores, Multiopticas in Portugal with 206 stores, Vision Express in Poland, Hungary and Bulgaria with 231 stores, as well as Synoptik in Sweden and Denmark with 226 stores. At the end of 2016, there were 1,818 stores in the Other Europe segment, an increase from 1,750 stores in 2015.

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.

Revenue

In Other Europe, revenue increased by 2.7% to €907 million in 2016 (2015: €883 million), or 3.5% at constant exchange rates. Organic revenue growth and comparable growth were 2.6% and 1.6% respectively. Revenue growth during the year was impacted by the integration and rebranding process in Italy following the merger of the Avanzi and Randazzo retail banners, while Eastern European markets continued to grow by mid-single digits.

Adjusted EBITDA

Adjusted EBITDA in the Other Europe segment increased by 4.0% to €138 million (2015: €133 million) or 4.9% at constant exchange rates. The adjusted EBITDA margin increased by 18 bps to 15.3%, driven by revenue growth, efficiency gains and a higher share of Exclusive Brand frames within the sales mix.