Benetton Revenues exceed 1,500 billion lire (+5%). Net profit rises by 21%. Ulrich Weiss (Deutsche Bank) joins the Board

First half of 1997 closes with record results

Ponzano, Italy, September 30, 1997. Consolidated revenues of 1,539 billion Lire, 5% up on the previous half-year, without input from new markets; net profit of 140 billion Lire (more than 9% of revenues), with an increase of 21% over the same period in 1996: these are the significant results approved today by the Board and with which Benetton Group S.p.A. has closed the first half of 1997.

In addition, the Board of Directors today co-opted Ulrich Weirs as a member.  Weirs is currently a member of the Management Committee at Deutsche Bank, where he is responsible for south-west Germany, Italy, Spain and Portugal. He is also President of the Board of Directors of Continental ERG and sits on the boards of major companies such as BASF AG, Fiat SpA, Südzucker AG, Heidelberger Zement AG and ABB Mannheim.

The significant growth in profits, obtained in the first half of 1997, is a result of programs undertaken to improve industrial organisation and operational efficiency. These have made it possible not only to contain costs even further, but also to implement increasingly efficient commercial and distribution strategies. Gross margin has grown by 45 billion Lire compared with the previous half-year, to reach 639 billion Lire, representing almost 42% of sales. Operating income has reached 230 billion Lire, 15% of revenues (14% for the first half 1996).

As of June 30, 1997, the Group shows excess liquidity of 88 billion Lire as against net debts of 235 billion Lire at the end of the 1996 half-year, with an overall improvement of 323 billion Lire, after the payment of dividends totalling almost 90 billion Lire. Self-financing has reached 393 billion Lire against 312 billion Lire at the end of the 1996 half-year. Stockholders’ equity as of June 30, 1997, has risen to 1,884 billion Lire.

On July 22, Benetton Group S.p.A., advised by major merchant banks,  acquired from Edizione Holding (the Benetton family holding company) the majority stake in Benetton Sportsystem, one of the world's foremost companies in the sports sector, with leading brands such as Nordica, Prince, Rollerblade, Kästle, Killer Loop and Asolo. This operation also saw the introduction of a program for integrating and developing activities which, whilst maintaining the independence and identity of the various brands, aims to make Benetton one of the world's leading groups for sports clothing and equipment.

Benetton Group S.p.A., in particular, by bringing together its stylistic, technological and commercial expertise with the high-profile image and reputation of the brands acquired (complementing United Colors of Benetton, Sisley and 012), is committed to the development of sportswear collections alongside its traditional casual lines, creating a global clothing sector.

Consolidated Statement of Income

The consolidated statement of income for the first half-year is summarised below, together with comparative information for 1996:

The financial position

The comparative financial position is summarised below:

Cash flow during the period is summarised below on a comparative basis:

 

For further information:

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Half year 1997