Press Releases and Statements
Benetton Board approves results for the first quarter of 2004
Net income climbs to 28 million euro, casual clothing revenues in line with previous year. Net indebtedness sharply down
Ponzano, 12 May 2004. The Benetton Group Board of Directors today approved the results for the first quarter of 2004.
Consolidated revenues in the first three months of 2004 showed continued staying power in the clothing division, with a fall linked to the sale of the sports equipment brands in the first half of 2003. The value of consolidated revenues in the period was 381 million euro against 444 million recorded in the previous financial year. Revenues, net of the sports equipment disposal and currency impact, increased by 1.4%. Casual clothing revenues, net of currency impact, were up by 2.1%; the increase in volumes (+4.4%) was also significant.
Income from operations in the quarter was 45 million euro, 11.9% on turnover compared with 12.1% in the previous year (54 million euro). Net of the sale of the sports division and currency impact, income from operations was 47 million euro, 12.4% of turnover, substantially stable compared with the previous year.
Net income climbed to 28 million euro, 12.8% up on the first quarter of 2003.
The stability and strength of the Group balance sheet continued to be excellent, withnet indebtedness of 497 million euro against 709 million in the first quarter of 2003 and 468 million euro at 31 December 2003. The change relative to the end of the year was due principally to the normal working capital cycle, while the reduction compared with the corresponding quarter of 2003 benefited from the sale of the sports equipment division and lower investments. Shareholders’ equity rose to 1,204 million euro against 1,158 at the end of the first quarter 2003.
Self financing was 68 million euro (76 million euro in the same period of 2003), free cash flow (before dividends and the disposal of the sports equipment division) was minus 51 million euro, a significant improvement compared with minus 124 million in the first quarter of 2003, due to improvement in cash flow from operations.
The Board also analysed performance trends for 2004, reconfirming the forecast given following the Board of Directors meeting on 30 March 2004.
Consolidated income statement
Financial situation – highlights
Summary statement of cash flows
For further information: