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

Textiles | On 9th Dec 2016

ACIMIT signs MoU with Pakistan textile bodies

In a bid to strengthen the trading in garments and textiles between...

Textiles | On 9th Dec 2016

‘Less demand may make it hard to achieve export target’

The $48 billion target for textiles and garment exports for 2016-17...

Textiles | On 9th Dec 2016

GST Council may decrease tax rates in future: CBEC

The goods and services tax (GST) Council might reduce the proposed...

Interviews View All

Ghanshyam Ghoghari
Kimora Fashion

Bridalwear is not about reds and whites anymore

Karan Suratwala
Key Textile Accessories Private Limited

Chinese imports are destroying the supply chain

Veronique Lee
Modavanti

‘Sustainable fashion is trending upwards, slowly but surely, as people...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

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
December 2016

December 2016

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

SUBSCRIBE


Browse Our Archives

GO


Advanced Search