Schiphol, the Netherlands – 23 April 2021. GrandVision N.V. publishes its First Quarter 2021 trading update.
Due to the exceptional nature of the year 2020, GrandVision will also include in the present press release comparisons versus 2019.
• GrandVision continues to show resilience in the first quarter despite the most recent COVID-19 related government
restrictions in Europe and Latam
• At constant exchange rates, revenue declined by -0.7% compared with 1Q20 to €899 million from €926 million in
1Q20 (1Q19: €974m)
• Comparable revenue declined by -1.5% versus 1Q20 and on a 2019 basis, -10.8% versus 1Q19
• Adj. EBITA increased by 98.1% at constant exchange rates to €79 million from €41 million in 1Q20 (1Q19: €107m).
Continued cost discipline, structural improvements in certain territories and improved product and price mix
contributed to the underlying performance
• Adj. EBITA margin at 8.8%, +437bps versus 1Q20 and -219bps versus 1Q19
• Approximately 95% of our store network was open at the end of March 2021. Temporary store closures from
ongoing government restrictions impacted outlets, mainly in shopping malls. France was the most affected with
around 300 stores temporary closed during the period
• Net debt at €569 million at the end of March 2021 (FY20: €539m; March 2020: €755m)
• European launch of Karün, a 100% sustainable brand using recycled products from Patagonia, Chile
• GrandVision joined the United Nations Global Compact initiative
• GrandVision to maintain its dividend proposal of €0.35 per share for the fiscal year 2019 at the Annual General
Meeting on 23 April 2021
First Quarter 2021 key figures
in millions of EUR (unless stated otherwise) 1Q21 1Q20 1Q19
Change versus prior year
At reported rate At constant exchange rate Organic growth Growth from acquisitions
Revenue 899 926 974 -3.0% -0.7% -1.0% 0.3%
Comparable growth (%) -1.5% -8.2% 5.0%
Comparable growth base 2019 (%) -10.8%
Adjusted EBITA 79 41 107 92.0% 98.1% 97.0% 1.1%
Adjusted EBITA margin (%) 8.8% 4.5% 11.0% 437bps
System wide sales 987 996 1,063 -0.9%
Number of stores (#) 7,247 7,320 7,216 -1.0%
Comparable growth base 2019 is defined as revenue growth from the stores which were comparable in 2019 and are still being operated as per 31 March, 2021
Stephan Borchert, GrandVision's CEO, commented "It has been a challenging start to 2021. Nonetheless, GrandVision
continues to show strong resilience, despite the ongoing uncertainties that the COVID-19 pandemic brings with it.
During the quarter, footfall remained at lower levels compared to 2019. However, we do see an overall stabilization and have maintained the strong conversion trend delivered in the second half of 2020. In addition, our customers’ ongoing inclination to higher-value products continues to bolster positive price and product mix effects.
Our segments delivered a mixed performance. The positive momentum continued in our businesses in the Nordics, the UK, Switzerland and Americas & Asia, including the US. In France, almost 300 own and franchisee stores have
been temporary closed due to COVID-19 increased government restrictions, accounting for one-third of the Group’s revenue shortfall versus 2019. At the start of the quarter, Germany and BeNe were also temporarily impacted by the
additional COVID-19 related measures, although with a gradual recovery towards the quarter-end.
Our online sales have continued to grow. Total e-commerce sales including omnichannel-enabled retail brands and our pure players grew by 35% compared to 2020.
In March, we implemented a new POS system in more than 200 stores in France and integrated all the 105 Óptica2000 stores into the global omnichannel and CRM platforms. Our new CRM platform is now live in 13 markets, including
Belgium and the Netherlands. With this platform, we will better address, serve, and retain our customers. During 1Q21, our online appointment bookings and digitally influenced store sales doubled compared with the prior year, and we
continue to improve conversion rates.
We have made further steps on our Corporate Responsibility and Sustainability agenda. I am proud to announce our inclusion in the United Nations Global Compact, the world’s largest corporate sustainability initiative. We also
launched Karün, a 100% recyclable eyewear brand from Chile and an important addition to our portfolio of sustainable eyewear brands. The collaboration with Karün is another step towards our ambition to positively contribute to our environmental impact and increasing our contribution to local communities in need.
As we look ahead, we are confident with the ongoing execution of our omnichannel strategy. However, there are still COVID-19 related uncertainties for the remainder of 2021. Therefore, we refrain from providing an outlook for FY 2021 at this stage.
Finally, we continue to support EssilorLuxottica in its acquisition of GrandVision and are working with EssilorLuxottica to obtain the final required regulatory approval in Turkey."
Financial Position and Dividend
At the end of 1Q21, GrandVision’s net debt position was €569 million, compared to €539 million at year-end 2020.
Due to the Company's financial position not being materially worsened due to the impact of the second wave of COVID-19 in 1Q 2021, GrandVision maintains its dividend proposal of €0.35 per share for the fiscal year 2019 at the
Annual General Meeting on 23 April 2021.
GrandVision will not propose at this time a dividend for the fiscal year 2020.
GrandVision remains confident to continue executing the Company’s strategy for 2021.
The increase in restrictive government measures across many of our markets related to the COVID-19 pandemic, has impacted the start of 2021. Given the ongoing uncertainty and timing related to the lifting of the COVID-19 measures,
GrandVision will not provide any guidance for the full year 2021 at this stage.
Status of transaction with EssilorLuxottica
GrandVision continues to support EssilorLuxottica with the shared objective to obtain regulatory approval for the
closure of the acquisition by EssilorLuxottica of HAL’s 76.72% interest in GrandVision (the Transaction) before 31 July
2021. So far, the Transaction has been unconditionally cleared in Brazil, Colombia, Mexico, Russia and the United
States and conditionally cleared in the EU and Chile. It is still under review in Turkey.
On 23 March 2021, the European Commission cleared the Transaction. The clearance is conditioned on the
divestment of some optical retail businesses, in particular, 35 GrandOptical stores in Belgium, 142 Eye Wish stores in
the Netherlands and 172 stores in Italy, which includes the whole of EssilorLuxottica's VistaSì chain together with 72
stores from the “GrandVision by” chain.
On 12 April 2021, GrandVision announced that the Chilean market regulator FNE (Fiscalía Nacional Económica) has
cleared the Transaction on 9 April 2021. The clearance follows the commitment to divest GrandVision’s Chilean
operations operating under the banner Rotter Y Kraus. GrandVision’s Chilean operations will be sold to HAL in
accordance with the terms of the block trade agreement entered into by HAL and EssilorLuxottica on 30 July 2019 in
respect of the Transaction.
On 18 July 2020, EssilorLuxottica initiated summary proceedings before the District Court of Rotterdam demanding
that GrandVision provides to EssilorLuxottica additional information in relation to GrandVision's actions to mitigate the
impact of COVID-19 on its business.
On 24 August 2020, the District Court dismissed all claims made by EssilorLuxottica. EssilorLuxottica has appealed the
decision of the District Court.
On 6 April 2021, the Amsterdam Court of Appeal dismissed all claims made by EssilorLuxottica. The ruling confirms
the earlier ruling by the District Court on 24 August, 2020.
On 30 July 2020, GrandVision announced that it had initiated arbitration proceedings against EssilorLuxottica in
connection with the material breach notice EssilorLuxottica has sent to GrandVision. These proceedings are currently
ongoing; they are confidential and non-public.
Further announcements will be made if and when required.
FINANCIAL RECOGNITION OF THE REMEDIES
The antitrust approval in the European Union for the Transaction between HAL and EssilorLuxottica is conditioned on
the divestment of GrandVision’s 35 GrandOptical stores in Belgium, 142 Eye Wish stores in the Netherlands and 72
stores from the “GrandVision by” chain in Italy.
As from 23 March 2021, the so-called Hold Separate Organization (HSO) is managed by Hold Separate Managers. The
HSO is excluded from consolidation as from 1 April 2021, as GrandVision has no longer control over these divestments
and the relevant assets and liabilities of divestments will be derecognized from the consolidated Balance Sheet.
Instead, the fair value of these divestments will be reported as “Investments in Associates” on the consolidated Balance
The total net result of these divestments will be reported as part of the Company’s Operating Result as “Result of
Associates” in GrandVision’s Consolidated Income Statement.
Any detail on the performance of the HSO shall remain confidential.
The carve-out in Chile is subject to and will close simultaneously with the closing of the Transaction. Therefore, the
Chilean business will continue to be part of GrandVision’s consolidated figures until closing.
Group financial review
GrandVision’s 1Q21 revenue at constant exchange rates declined by -0.7% to €899 million versus 1Q20 (1Q20:
€926m) with comparable revenue decrease of 1.5%. On a 2019 basis, comparable revenue declined by 10.8% versus
Higher average price driven by higher value products and increased share of non-exclusive brand sales had a positive
effect on revenue during the quarter.
The positive trend in our conversion ratios continued, despite footfall continuing to be lower than 2019 levels. During
the quarter, approximately 5% of our store network, predominantly in shopping malls, was temporarily closed or
operated limited hours due to COVID-19 government restrictions. The biggest impact has been in France, where we
had to temporarily close around 300 commercial center stores. Approximately 50% of the own stores' network in
France has been impacted, which accounts for circa 60% of the country’s sales. The restrictive COVID-19 measures are
still ongoing at the start of 2Q21.
E-commerce sales via our omnichannel-enabled retail brands grew by 128% during 1Q21 versus the prior year and the
pure-play e-commerce platforms delivered high single-digit growth. Our global online platforms continue to deliver
positive growth momentum, with digitally influenced store sales doubling versus 1Q20.
1Q21 system wide sales, which reflects the retail sales of GrandVision's own stores plus that of its franchisees, was
€987 million (1Q20: €996m; 1Q19: €1,063m).
GrandVision's store network at 7,247 stores (FY20: 7,260), including 34 store openings across all segments, mainly in
the G4, and ongoing store network optimization.
Adjusted EBITA (i.e. EBITA before non-recurring items) increased to €79 million in 1Q21 from €41 million in 1Q20
(1Q19: €107m). Ongoing improvements in our price and product mix, continued cost discipline and efficiencies across
the Group. Structural improvements in historically underperforming markets partially offset the negative effect from
revenue reduction due to the COVID-19 pandemic.
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GrandVision's Annual General Meeting (AGM) 2021 adopts all resolutions
Schiphol, the Netherlands - 23 April 2021. GrandVision N.V. (Euronext: GVNV) announced today that its Annual General Meeting (AGM) has approved all resolutions on the agenda of the AGM. The adopted resolutions are listed below:
• Adoption of the Annual Accounts for the financial year 2020 as drawn up by the Management Board and signed by the Managing Directors and the Supervisory Directors on 25 February 2021
• Advisory vote on the approval of the remuneration report 2020
• Proposal on dividend distribution for the financial year 2019 of EUR 0.35 per share
• Discharge of Managing Directors for their management during the financial year 2020
• Discharge of Supervisory Directors for their supervision of management during the financial year 2020
• Re-appointment of Mr. P. Bolliger as Supervisory Board Director
• Re-appointment of Mr. J. Cole as Supervisory Board Director
• Appointment of PricewaterhouseCoopers Accountants N.V. as external auditor for financial year 2022
• Authorization of Supervisory Board to issue shares or grant rights to acquire shares
• Authorization of Supervisory Board to restrict or exclude pre-emptive rights
• Authorization of Management Board to repurchase shares.