Press Releases and Statements
Benetton Board approves 2004 First Half Results
Net income of 67 million euro
Ponzano, 9 September 2004. Consolidated revenues of 853 million euro, net income up to 67 million euro, free cash flow of 34 million euro, net indebtedness down to 567 million euro: these were the key numbers in the Benetton Group results for the first half of 2004, approved by the Board of Directors today.
Consolidated revenues for the first half year were 853 million euro against 969 million for the first half of 2003, affected by the sale of the sports equipment division in the last financial year and by the persistent weakness of foreign currencies. Revenues net of the impact of these two elements were 849 million euro (against 869 million) with a decrease of 2.2%. Casual clothing division turnover was 759 million euro, with a growth in volume of 2.7%.
The gross operating income was 373 million euro with a ratio to revenues of 43.7% compared with 42.8% in the first half of 2003, favourably affected by greater organisational efficiency.
Income from operations was 111 million euro compared with 130 million in the reference half year, with a ratio to revenues which moved to 13.0% from 13.4%.
Net income was 67 million euro against 50 million in the first half of the previous financial year.
The equilibrium and strength of the Group balance sheet continued to be excellent, with net indebtedness down to 567 million euro from 571 million at 30 June 2003 (468 million at 31 December 2003). The cyclical increase compared with the end of 2003 also results from the payment of substitute tax arising from the company reorganisation carried out in 2003. Stockholders’ equity was 1,175 million euro.
Free cash flow, being cash generated by normal operations, before distribution of dividends and non-recurring cash flows, relative to the sale of the sports equipment business and the payment of substitute tax, improved significantly to 34 million euro from 16 million in the first half of 2003.
Based on information currently in hand, the Group confirms that net income for 2004 will range between 125 and 130 million euro. Casual clothing division revenues, which account for around 90% of the total, are forecast to fall slightly by between 1.0% and 2.0%.
Consolidated revenues at the end of 2004, following the disposal of the sports equipment division during the previous financial year, are estimated to be around 1,750 million euro, in the face of persistently cautious demand.
Self-financing in 2004 is expected to be in line with that achieved in 2003, as isindebtedness. Investments are forecast to be around 100 million euro, focussed principally on development of the sales network.
Group results (in millions of Euro)
Consolidated income statement
Summary statement of cash flows
Benetton Group S.p.A. results
Statement of income
Income statements related to the first half 2003 are not comparable as a consequence of the Company reorganization plan which took place in December 2003.
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