136 / 302
Management’s discussion and analysis as of December 31, 2015
Consolidated sales and earnings performance
Recurring operating income by region
% change at
constant exchange
2015
2014*
% change
rates
(in millions of euros)
France
1,191
1,271
(6.4)%
(6.4)%
Rest of Europe
567
425
33.4%
33.4%
Latin America
705
660
6.9%
23.5%
Asia
13
97
(87.0)%
(87.6)%
Global functions
(31)
(67)
(53.4)%
(53.8)%
TOTAL
2,445
2,387
2.4%
7.0%
For the purposes of comparison with 2015 segment information, 2014 recurring operating income by segment has been restated to reflect an adjustment
*
linked to the allocation of head office costs.
Recurring operating income increased by 7.0% at constant exchange In the Rest of Europe, recurring operating income of 567 million euros
rates, to 2,445 million euros, reflecting growth in both Europe and the was 33.4% higher at constant exchange rates. Operating margin
emerging economies. This represented 3.2% of sales, unchanged from advanced by 70 points to 2.9% of sales. This strong performance was
2014.
largely driven by the continued recovery in Spain and improved
profitability in Italy. Operating margin was up in all of the Group's
The increase reflected:
countries.
sales growth by 3.0% at current exchange rate;
●
In Latin America, recurring operating income came in at 705 million
a higher gross margin, representing 23.4% of sales
versus
22.8% in
●
euros (up 23.5% at constant exchange rates) and represented 4.9% of
2014;
sales (up 20 points). This improvement reflects solid like-for-like sales
tight control of sales, general and administrative expenses and
●
growth in Brazil and Argentina as well as a pick-up in gross margin.
depreciation and amortization, which represented 20.2% of net
Sales, general and administrative expenses include an increase in
sales compared with 19.6% in 2014.
energy costs in Brazil.
In France, 2015 recurring operating income totaled 1,191
million In Asia, recurring operating income came to 13 million euros. Against
euros (3.3% of sales) and operating margin
(1)
(1) was up year on year
a backdrop of economic slowdown and rapidly evolving consumer
net of the cost of integrating Dia stores, the rise in tax on commercial
expectations in China, the Group continued to reposition itself in the
sites and the transfer of shopping center rental income to Carmila market. In Taiwan, sales grew for the first time in more than two years
following its creation in 2014. The plan to convert the former Dia while recurring operating income improved, boosted by the
stores was stepped up as planned in the second half of 2015.
development of our multi-format model and the modernization of
certain hypermarkets.
Depreciation and amortization
Depreciation and amortization amounted to 1,470 million euros in 2015. At 1.9% of sales, the ratio was stable compared with 2014.
Net income from companies accounted for by the equity method
Net income from companies accounted for by the equity method rose to 44 million euros
versus
37 million euros in 2014.
Recurring operating income as a percentage of sales.
(1)
136
2015 REGISTRATION DOCUMENT