COLRUYT GROUP N.V. 
Dear shareholders,
In a persistently difficult economic climate, Colruyt Group accomplished more than reasonable results in the past financial year. The combination of price deflation, actions of competitors and the consumer's demand for a cheaper product-price mix resulted in a lower revenue increase compared to the increased sales volumes. In such a challenging market environment, our revenue rose by 3,1% to 8,9 billion euros. Because our revenue increased faster than the market, Colruyt Group's market share in Belgium reached 31,0%.
Despite increased price investments to realise our lowest prices strategy, the gross margin remained stable, mainly because the competition's pressure on prices was less fierce in the second half of the financial year.
The operational results of the past financial year were affected by a once-only cost of 31,6 million euros to accept the infringements of the Belgian competition rules in the sector of perfumes, cosmetics and chemist's brand products in the period from 2002 to 2007. We pay this fine to renounce endless procedures with the authorities about facts that are 10 years old by now. However, Colruyt Group wants to emphasize that it always realised its lowest prices guarantee and that it did not elaborate a system to make price agreements with other distributors and suppliers. Since then we have thoroughly reinforced our internal control procedures to prevent external pressure that might influence the independent functioning of our internal departments.
Without this once-only cost, the EBITDA margin remained stable at 7,9%. The net operational costs rose a little faster than the revenue because we continued to invest in employees and efficiency improvements. As a result of the execution of our investment programmes and expansion strategy, the comparable EBIT margin ended at a stable 5,6%. Finally, a number of higher financial results caused a slightly more elevated comparable net profit margin up to 4,1%.
Because of the once-only cost of 31,6 million euros, the profit per share decreased to 2,21 euros. As a result of a consistent application of our dividend policy, we propose an unaltered gross dividend of 1,00 euro per share.
In retail, revenue rose by 3,6% whereas the operating result went down by 3,6% a/o under the influence of price pressure. Retail represents three quarters of the group's revenue and included 498 sales points of Colruyt, OKay, Bio-Planet, Cru, Dreamland, Dreambaby and Collishop in Belgium and France at the end of March.
Wholesale and foodservice represent 17% of the group's revenue and comprise Retail Partners Colruyt Group and Solucious in Belgium, and Pro à Pro and the affiliated stores in France. Revenue increased by 3,4%. The food price deflation made wholesale activities decrease by 0,5%. Thanks to a constant focus on a number of assets such as reliability, product quality, service and personal contact, revenue in foodservice rose by 7,7%. Constant care for improvements in cost efficiency in wholesale and foodservice made the operating result increase by 2,9%.
Finally, the other activities DATS 24, Symeta and WE-Power account for 8% of the group's revenue. Lower oil prices at DATS 24 caused a decrease of revenue in the other activities by 1,8%.
Because of the increased results of our operational activity, we are satisfied with the past financial year. On behalf of the Board of Directors, I want to thank our customers and business partners for their confidence and our employees for their enthusiasm and their daily commitment.
In the past year, we welcomed 1.068 new colleagues which means that by the end of March we became a community of 28.100 co-workers. A clear sign that Colruyt Group accepts its role to provide a social added value in the current socioeconomic context.
We are determined to continue to supply a sustainable added value. To realise this, we count on the craftsmanship and commitment of our employees and on your trust. Colruyt Group for its part made considerable investments in the future again: more than 370 million euros in stores, distribution centres, production departments, information technology and sustainable energy projects.
In our complex society everything is changing rapidly, we struggle with a weak economic growth and there is uncertainty about the future of the welfare state. From our mission and values, we have put our group ambitions and objectives for the coming years in focus. As a result, we started several programmes and projects to offer our customers 'Simplicity in retail'. By helping them make healthy and sustainable choices for instance. For this purpose we work on the quality and nutritional value of our private label products, on a sustainable range of fish products and on better working conditions at our suppliers and partners in high-risk countries. Furthermore, we focus on innovation, with retail solutions in e-commerce, by being the first retailer to make mobile payment possible in all our webshops and stores. Our engineers build stores and offices that are much more energy-efficient than required by law.
And with the Colruyt Group Academy we offer workshops on all kinds of consumer-oriented themes to 20.000 customers each year.
The net added value of the group in Belgium amounts to 1,9 billion euros. Almost half of this flows back to society through the government. We expect the government to use these means efficiently to lower the charges on labour and to increase spending power. To stimulate economic growth in retail we need initiatives in the field of e-commerce and mobility. More in general, we want to launch an appeal for simplification of tax laws for companies as well as for private persons. In our endeavour to achieve 'Simplicity in retail' we are often
faced with the increasing complexity of tax rules and the fragmentation of competences on a federal, regional and local level.
In financial year 2015/2016 Colruyt Lowest Prices will consistently implement its lowest prices strategy. Colruyt Group will keep investing in employees, stores, processes and efficiency improvements. We expect the market to remain price-competitive and the pressure on our revenue and margin to go on unabated. In the short term, we do not expect any significant improvement in the economic climate and the consumer's confidence in our markets. We do expect a consolidated revenue growth of 2 to 4% during the current financial year. Therefore we expect that the consolidated net result of the 2015/2016 financial year will at least equal the result of 2014/2015 (excluding the once-only cost of 31,6 million euros).
Jef Colruyt
Chairman of the Board of Directors Colruyt Group
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