Annual Review 2012 - Luxottica

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ANNUAL REPORT 2012
approximately 263,300 in the same period of 2011, which was attributable to increased
production in all manufacturing facilities in response to an overall increase in demand.
Gross Profit. Gross profit increased by Euro 652.6 million, or 16.1 percent, to Euro 4,707.0
million in 2012 from Euro 4,054.4 million for 2011. As a percentage of net sales, gross profit
increased to 66.4 percent in the twelve months of 2012 as compared to 65.2 percent for
the same period of 2011, due to the factors noted above.
Operating Expenses. Operating expenses increased by Euro 477.7 million, or 14.7 percent,
to Euro 3,725.0 million during 2012 from Euro 3,247.3 million in 2011. As a percentage of
net sales, operating expenses slightly increased to 52.6 percent in 2012, as compared to
52.2 percent in 2011.
Adjusted operating expenses (11) , increased during 2012 by Euro 471.1million, or 14.6
percent, to Euro 3,704.7 million from Euro 3,233.6 million in 2011. As a percentage of net
sales, adjusted operating expenses (11) are in line with last year at 52.3 percent in 2012 and
52.0 percent in 2011.
Please find the reconciliation between adjusted operating expenses (11) and operating
expenses in the following table:
(millions of Euro) 2012 2011
Operating expenses 3,725.0 3,247.3
Adjustment for OPSM reorganization (20.3) (9.6)
Adjustment for Multiopticas Internacional extraordinary gain - 19.0
Adjustment for 50 th anniversary celebrations - (12.0)
Adjustment for restructuring costs in Retail Division - (11.2)
Adjusted operating expenses 3,704.7 3,233.6
Selling and advertising expenses (including royalty expenses) increased by Euro 332.2
million, or 13.2 percent, to Euro 2,842.0 million in 2012 from Euro 2,509.8 million in 2011.
Selling expenses increased by Euro 276.4 million, or 13.9 percent. Advertising expenses
increased by Euro 37.7 million, or 9.2 percent. Royalties increased by Euro 18.1 million,
or 17.0 percent. As a percentage of net sales, selling and advertising expenses were 40.1
percent in 2012 and 40.3 percent in 2011.
Adjusted selling expenses (12) in 2012 increased by Euro 262.0 million, or 13.1 percent to
Euro 2,254.1 million from Euro 1,992.1million in the same period of 2011. As a percentage
of net sales, adjusted selling expenses (12) were 31.8 percent in 2012 as compared to the
32.0 percent in 2011.
Adjusted advertising expenses (13) increased by Euro 43.4 million to Euro 446.2 million in
2012, from Euro 402.8 million in 2011. As a percentage of net sales, adjusted advertising
expenses (13) were 6.3 percent and 6.5 percent in 2012 and 2011, respectively.
(11) For a further discussion of adjusted operating expenses, see page 43 - “Non-IFRS Measures”.
(12) For a further discussion of adjusted selling expenses, see page 43 - “Non-IFRS Measures”.
(13) For a further discussion of adjusted advertising expenses, see page 43 - “Non-IFRS Measures.