Annual Review 2012 - Luxottica
Annual Review 2012 - Luxottica
Annual Review 2012 - Luxottica
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10 |<br />
ANNUAL REPORT <strong>2012</strong><br />
its financial results: (i) non-recurring expenses related to the restructuring of the Australian<br />
retail business of Euro 21.7 million (Euro 15,2 million net of the fiscal effect), (ii) non-recurring<br />
cost related to the tax audit of one of <strong>Luxottica</strong>’s subsidiaries of approximately Euro 10.0<br />
million. During 2011, the Group recognized the following non-recurring income and<br />
expenses: (i) an extraordinary gain related to the acquisition of the initial 40 percent of<br />
Multiopticas Internacional S.A. (MOI) of approximately Euro 19.0 million, (ii) non-recurring<br />
expenses related to <strong>Luxottica</strong>’s 50 th anniversary celebrations of approximately Euro 12.0<br />
million, (iii) non-recurring restructuring and start-up costs in the retail distribution segment<br />
of approximately Euro 11.2 million, and (iv) non-recurring impairment loss related to the<br />
reorganization of the Australian retail business of approximately Euro 9.6 million.<br />
The income from operations, EBITDA and net income attributable to the <strong>Luxottica</strong> Group<br />
stockholders adjusted to exclude the above non-recurring items would be as follow:<br />
Adjusted Measures (9) <strong>2012</strong> % of net sales 2011 % of net sales % change<br />
Adjusted income from operations 1,003,757 14.2% 820,863 13.2% 22.3%<br />
Adjusted EBITDA 1,362,043 19.2% 1,135,852 18.3% 19.9%<br />
Adjusted Net Income attributable to <strong>Luxottica</strong> Group<br />
Stockholders 566,895 8.0% 455,613 7.3% 24.4%<br />
Net Sales. Net sales increased by Euro 863.6 million, or 13.9 percent, to Euro 7,086.1 million in<br />
<strong>2012</strong> from Euro 6,222.5 million in the same period of 2011. Euro 316.7 million of such increase<br />
was attributable to the increased sales in the manufacturing and wholesale distribution<br />
segment in the twelve months of <strong>2012</strong> as compared to the same period in 2011 and in the<br />
retail distribution segment of Euro 546.9 million for the same period.<br />
Net sales for the retail distribution segment increased by Euro 546.9 million, or 14.5 percent,<br />
to Euro 4,313.1 million in <strong>2012</strong> from Euro 3,766.1 million in 2011. The increase in net sales<br />
for the period was partially attributable to a 5.8 percent improvement in comparable store<br />
sales (10) . In particular, there was a 5.5 percent increase in comparable store sales for the<br />
North American retail operations, and an increase for the Australian/New Zealand retail<br />
operations of 6.5 percent. The effects from currency fluctuations between the Euro (which<br />
is our reporting currency) and other currencies in which we conduct business, in particular<br />
the strengthening of the U.S. Dollar and Australian Dollar compared to the Euro, increased<br />
net sales in the retail distribution segment by Euro 327.3 million during the period.<br />
Net sales to third parties in the manufacturing and wholesale distribution segment increased<br />
by Euro 316.7 million, or 12.9 percent, to Euro 2,773.1 million in <strong>2012</strong> from Euro 2,456.3 million<br />
in 2011. This increase was mainly attributable to increased sales of most of our house brands,<br />
in particular Ray-Ban and Oakley, which recorded high single digit optical growth, and Persol,<br />
and of some designer brands such as Burberry, Prada, Polo, Tiffany and the additional sales<br />
(9) Adjusted measures are not in accordance with IFRS. For a further discussion of adjusted measures, see page 43 - “Non-IFRS Measures”.<br />
(10) Comparable store sales reflects the change in sales from one period to another that, for comparison purposes, includes in the calculation only<br />
stores open in the more recent period that also were open during the comparable prior period in the same geographic area, and applies to<br />
both periods the average exchange rate for the prior period.