Press Releases and Statements
Benetton Board approves the results to 30 September 2002
Clothing turnover looking positive. Small drop in overall turnover and income
Ponzano, 14th November 2002 – Some growth in clothing turnover, overall turnover slightly down at 1,461.3 million euro, little reduction in net income (- 1.9 per cent), growth in self-financing to 264 million euro: these were the most significant Benetton Group results to 30 September, 2002, approved today by the Board of Directors.
Consolidated revenues for the first nine months were 1,461.3 million euro against 1,518.1 million in the same period of 2001 (- 3.7%), with a contraction associated to the forecasted decrease of the sport’s division turnover and to the deconsolidation of the activities of Color Service activities (Olimpias Group), which had contributed with around 12 million euro to the Group’s turnover. Performance of the casual clothing division was positive, with growth to 1,169.9 million euro (+ 0.7 per cent).
Net income for the first nine months was 83.7 million euro, slightly down compared with the 85.4 million in the same period of 2001 (- 1.9 per cent). The amount was influenced, in addition to the trend of revenues, by the increase in the tax rate to 43 per cent in the period (40 per cent in the first nine months of 2001).
Gross operating margin rose to 44.3 per cent of turnover (647.8 million euro), compared with 42.9 per cent in the first nine months of the previous financial year, thanks to the cost control policy implemented in the period and to the commercial policy focusing on better positioning of the products in the market.
In the first nine months of the year, investments were made totalling nearly 120 million euro. More than two thirds of these were directed towards persistence of the strategy of acquisition, re-styling and improvement of buildings for selling activities. Self-financing generated by the Group rose to 264 million euro, compared with 246 million of the previous year.
Notwithstanding the significant investments made, net indebtedness dropped to 810 million euro against 845 million at September 30, 2001. Shareholders’ equity at 30 September, 2002, was 1,239 million euro.
Regarding the third quarter of 2002, revenues were 459.6 million euro (474.3 million in the third quarter of 2001); gross operating income was 42.4 per cent; net income was 24.1 million euro.
The Board of Directors also adopted the Code of Behaviour (in accordance with article 2.6.3. of the Rules for Markets Organised and Managed by Borsa Italiana S.p.A.) and the Code of Ethics.
Group’s performance to 30 September, 2002 makes it possible to forecast, taking into account the trends of consumption at an international level, revenues with a slight reduction against the Group’s expectations, and therefore it will not be possible to achieve results in line with those of the last financial year.
Group results (in millions of Euro)
Consolidated income statement
Summary statement of cash flows
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