Feb '09
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
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