GrandVision reports preliminary revenue growth at constant exchange rates of 8.1% in 4Q17 and 5.6% in FY17

Revenue growth at constant exchange rates was 5.6% for the full year 2017 with organic growth of 3.5%. The first growth pillar, comparable store growth, reached 1.8% and was 2.3% when adjusted for the effect of fewer selling days in 2017. The continued network expansion, GrandVision's second pillar of growth, reached its highest contribution ever in 2017 with a contribution to growth of 1.7%. In total, more than 250 stores were added during 2017. The third growth pillar, acquisitions, added 2.1% to revenue growth including Visilab in Switzerland and Tesco Opticians in the UK. As a result, the total store network expanded to 7,001 at the end of the year.

In the fourth quarter, revenue growth at constant exchange rates was 8.1%. Organic growth was 1.6% despite the slow comparable growth of -0.8%, caused, as previously announced in the 3Q17 Trading Update, by fewer selling days compared to the previous year related to the timing of the 2017 Christmas holidays. The overall influence of those factors was -1.3% and felt strongest in the G4 segment. The acquisitions of Visilab in the Other Europe segment and Tesco Opticians in the G4 segment started to contribute to the growth during 4Q17.

In the G4 segment, revenue and organic growth were positive also in 4Q17 despite the -2.0% effect of fewer selling days in the segment, and the impact of the 2017 regulatory changes in France. As reimbursements were no longer linked to the calendar year, customers no longer rushed to pick up their orders by year-end. The UK business contributed positively through mid-single digit organic growth and first time consolidation of Tesco Opticians as of 4 December 2017.

In the Other Europe segment, revenue at constant exchange rates grew strongly in the fourth quarter. Organic growth in Eastern Europe continued to be strong with high single digits also in 4Q17, and Visilab in Switzerland as of October added approximately 20% to revenue. However, the 4Q17 comparable growth in the segment was slightly negative against a high prior year comparable of 7.0%, as the performance, especially across Northern and Southern Europe was affected by the calendar effect in a number of countries.

GrandVision is expecting slower but still positive adjusted EBITDA growth in the fourth quarter despite the adverse calendar effect on revenue.

GrandVision will host a conference call and audio webcast on 24 January at 9am CET. The dial-in details are available at the end of this press release and investors.grandvision.com. The Full Year 2017 results press release will be published on 28 February 2018, followed by a conference call on the same day.