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112 2014 Registration Document
Comments on 2014 fiscal year
4
Sales and earnings performance
Recurring operating income by region
(in € millions)
2014
2013
% change
% change at constant
exchange rates
France
1,271
1,198
6.1%
6.1%
Rest of Europe
425
388
9.6%
9.6%
Latin America
685
627
9.4%
23.2%
Asia
97
131
(25.5)%
(24.8)%
Global functions
(92)
(106)
(12.7)%
(12.7)%
TOTAL
2,387
2,238
6.7%
10.6%
Recurring operating income increased by 10.6% at constant exchange
rates, to €2,387 million, representing 3.2% of sales, compared with
3.0% in 2013.
The increase reflected:
■
a higher gross margin, representing 23.0% of sales versus 22.7%
in 2013;
■
tight control of general and administrative expenses (including asset
costs), which remained stable at 20% of net sales.
In France, recurring operating income rose by 6.1% to €1,271 million,
representing a 0.2-point improvement in operating margin to 3.6% of
sales. All formats contributed to this performance, which was attributable
to the favorable margin impact of reduced shrinkage and logistics cost
savings.
In the Rest of Europe, recurring operating income of €425 million was
9.6% higher at constant exchange rates. Operating margin advanced by
0.2 points to 2.2% of sales. Profitability in Spain continued to improve,
while in Italy, on-going deployment of action plans helped to drive an
improvement in sales trends in the second half of the year. In the other
countries of the region, profitability held firm overall and continued to
improve in Belgium.
Recurring operating income in Latin America amounted to €685 million,
an increase of 23.2% at constant exchange rates that reflected resilient
margins and excellent like-for-like sales in Brazil and Argentina.
In Asia, recurring operating income came to €97 million versus €131
million in 2013. The margin rate held firm. The Group is adapting its
business to an environment shaped by very subdued consumer spending.
Distribution costs rose due to wage inflation and expansion costs in
China. The performance of operations in Taiwan improved compared
with the prior year.
Depreciation and amortization
Depreciation and amortization amounted to €1,381 million in 2014. This represented 1.8% of sales, unchanged from 2013.
Net income from companies accounted for by the equity method
Net income from companies accounted for by the equity method totaled €37 million versus €30 million in 2013.