Press Releases and Statements
Benetton Group 9 Month consolidated revenues increase to 1,372 million euro
Industrial investments approved for around 70 million euro
Xổ số miền nam chủ nhậtPonzano, November 13, 2006 – The Benetton Group Board of Directors today approved the consolidated results for the first nine months of 2006.
The Board also approved new industrial investments for a total of 70 million euro. In particular, 50 million euro are to expand and strengthen the Italian logistic centre. This expansion, which will apply the sector’s most advanced technologies, will support the forecast growth in volumes, guaranteeing timeliness and service to stores.
The Tunisian manufacturing platform will receive additional investments of around 20 million euro.
Group net revenues for the first nine months of 2006 were 1,372 million euro, up by 84 million euro (+ 6.5%) compared with 1,288 million in the corresponding period of 2005. “Apparel” sector sales to third parties amounted to 1,267 million euro, with an increase of 83 million euro (+ 7.0%), compared to 1,184 million euro in the first nine months of 2005.
Xổ số miền nam chủ nhậtRevenues in the “Apparel” sector were influenced by a 14 million euro increase in contribution of the Turkish partnership (established in May 2005), growth in sales by directly operated stores, revenue performance from the network managed by partners, driven by the commercial development strategy, including the increase in margins to the network, and the positive reception of collections by the market.
In addition, as from August 2006, the Group has consolidated on a retail basis operations of the new company Milano Report S.p.A..
The Mediterranean basin, Eastern European Countries, China and India continue to grow significantly.
Luciano Benetton, commenting on the first nine months, declared “With these results we can already say we have achieved the objectives that we set for this phase of the company’s development. We are now ready to tackle a new period in which we plan, in addition to strengthening areas where we are already present, renewed commitment to growth in emerging countries and, generally, in all countries with significant demographic growth”.
Gross operating income was 42.2% of revenues compared with 43.4% in the same period of 2005, with a contribution margin of 35.1% compared with 36.3% in the corresponding period of 2005. Margins were primarily influenced by policies implemented by the Group to stimulate development of the network and increase margins to the commercial partners.
EBIT was 137 million euro, compared with 138 million euro in the first nine months of 2005, representing 10.0% of revenues, against 10.7% in the comparative period, maintaining the ratio of general and operating expenses to revenues almost unchanged.
Net incomeXổ số miền nam chủ nhật attributable to the Parent Company was 94 million euro compared with 89 million euro for the first nine months of 2005 (with percentage of revenues unchanged at 6.9 %).
Group shareholders’ equity at September 30, 2006, amounted to 1,303 million euro, against 1,237 million euro at September 30, 2005 (and 1,262 million at December 31, 2005). The net financial positionXổ số miền nam chủ nhật was 452 million euro, against 565 million euro at September 30, 2005 (and 351 million at December 31, 2005), due to improved working capital management, resulting from commercial policies adopted and in spite of higher operating investments.
In the first nine months of 2006, net operating investments amounted to 90 million euro against 61 million euro in the comparative period. The majority of the investments went to the sales network, for an amount of 84 million euro, for the acquisition, modernisation and upgrading of stores, especially in countries with strong development potential such as Eastern Europe, to foster future growth in revenues. Production investments amounted to 19 million euro and related to the establishment of a factory in Croatia, the manufacturing companies and the textile segment.
The significant increase in volumes allow the forecast of an increase of around 8% in 2006 consolidated revenues. The continued search for production and commercial efficiency makes it possible to forecast EBIT of around 10% of consolidated revenues and net income in the region of 6.5-7% of consolidated revenues.
This document includes indications of future company prospects which reflect the current opinions and forecasts of the Management. Any indication relating to the future of the company is subject to certain risks and uncertainties which could cause material variations in the final results compared with forecasts made. Potential risks and uncertainties include factors such as general economic conditions, fluctuations in exchange rates, pressures from competitive products and prices and changes in regulations.
BENETTON GROUP CONSOLIDATED RESULTS
Consolidated income statement
Balance sheet and financial position highlights
Consolidated cash flow statement
(A) Includes 118 million euro in proceeds from the sale of financial assets.
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