Home / Knowledge / News / Apparel/Garments / Benetton Group SpA profits rise, sales drop in 2008
Benetton Group SpA profits rise, sales drop in 2008
18
Feb '09
The Benetton Group Board meeting viewed the preliminary results for the 2008 financial year, pending availability of final numbers which will be examined and approved by the Board of Directors on March 18.

The 2008 preliminary results met the Group's preset objectives, despite the deteriorating international economic situation, which became particularly evident in the fourth quarter of the year. Far-reaching structural actions were carried out with resolve in the period and have yielded the expected benefits.

Of particular note were the improvement of the supply chain structure with the aim of strengthening service to the network of partners, acceleration of profitable growth in strategic countries, such as Russia, India and Turkey, and completion of the new organizational structure based on Business Units.

Preliminary 2008 numbers showed growth of consolidated revenues to 2,128 million euro, with an increase of 4% (+5.7% currency neutral). Also positive were operating profit, up 4.7% to 254 million euro, and net income, which was 155 million euro (+7%). Ordinary EBITDA was 353 million euro (+5.1%), 16.6% of revenues (stable compared with the previous year).

Margins benefited from the positive impact of the substantial actions undertaken, in particular the reduction of the complexity of the collections and the improvements introduced into the supply chain in terms of efficiency and effectiveness, also for the sales network. In the fourth quarter, there was a slowdown in revenue growth (+2.9%, +4.1% currency neutral) and increasing pressure on margins.

“The situation in 2009 will be difficult for everyone and this was made quite clear by trends in the fourth quarter of the year just ended. The Group occupies a distinctive positioning for product quality, with affordable prices, a widespread and flexible distribution model, based on a network of first-rate sales partners, and proven financial strength. With the support of these elements, we will initiate a series of radical actions to prepare the company for the emergent context which will, inevitably, increase pressure on profitability” said CEO Gerolamo Caccia Dominioni.

“We will therefore pursue four key policies: a firm strengthening of the collaboration with, and support of, the network of sales partners, a deep optimization of the industrial and production system, without compromising quality, an exceptional reduction of structural costs and strict control on invested capital. Finally, we will continue to invest with discipline to guarantee the company's growth” added Caccia Dominioni.

The Benetton Group


Must ReadView All

Europe fights against microplastic release from textiles

Textiles | On 18th Jan 2018

Europe fights against microplastic release from textiles

The European Commission, the institution of the European Union, has...

Egypt starts building biggest textile city in Al-Sadat

Textiles | On 18th Jan 2018

Egypt starts building biggest textile city in Al-Sadat

Egypt has started construction of the biggest city for textiles and...

Vietnam targets $20 bn from export of footwear, bags

Apparel/Garments | On 18th Jan 2018

Vietnam targets $20 bn from export of footwear, bags

Vietnam targets to earn around $20 billion from the export of...

Interviews View All

Nitin Soni
Dolphin Jingwei Machines

Taxation policies need to be made simpler

Manuj Terapanthi
Texaura

Transparent supply chain and fair trade will boost sustainable market

Cindy McNaull
Cordura

We have broad range of options in durable fabrics

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Urmil Arya

Sushila International, a well established textile organisation established ...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Anisha Chaudhari
Threads & Shirts

Threads &amp; Shirts is a freshly-tailored concept providing men/women a...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

January 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.1%
No
13.4%
Skip
17.5%

Total Votes: 97

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.9%
No
28.9%
Skip
7.2%

Total Votes: 97

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.6%
No
9.3%
Skip
3.1%

Total Votes: 97

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
82.5%
No
8.2%
Skip
9.3%

Total Votes: 97


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search