Home / Knowledge / News / Apparel/Garments / Benetton sees continuous growth in emerging markets
Benetton sees continuous growth in emerging markets
15
Nov '10
The Benetton Group Board of Directors examined and approved the consolidated results for the first nine months of 2010.

• Revenues: €1,498 million (+0.5%, net of foreign exchange impact -1.5%).
• Continued growth in emerging markets, especially in Asia.
• Income from operations: €141 million (9.4% of revenues).
• Net income: €85 million (5.7% of revenues).
• Net financial position further improved at €645 million.
• Commercial investments up, with important renewal of European flagship stores.
• Price increase of raw materials expected, with negative impact on 2010 full year results.

Consolidated income statement
Group net revenues for the first nine months of 2010, characterised by continuing economic uncertainty in the most important markets for our brands, reached €1,498 million (+0.5% over the comparative period, equivalent to €7 million), due to the impact of commercial policies implemented to support the sales network, and as a result of the revaluation against the Euro of the currencies of some emerging countries, totaling €29 million (Korean won, Indian rupee, Turkish lira and the yen). Apparel segment revenues were €1,418 million, up by €5 million (0.3%) compared with the first nine months of 2009. Textile segment revenues were €80 million compared with €78 million in the comparative period (+2.6%).

Geographically, in established markets, the slow-down in Greece and, to a lesser extent, in Spain and Italy, was offset by sustained sales levels in the rest of Europe. In emerging markets, whose proportion of total sales increased to 14% (12% in the first nine months of 2009), all the main markets performed well, with particularly strong growth in Mexico (+36% currency neutral), India and Russia.

Gross operating income of €696 million (46.5% of net revenues) was up (+€16 million) compared with €680 million (45.6%) in the comparative nine months, due to the decisive contribution of efficiencies achieved in manufacturing and procurement.

The contribution margin reached €583 million (38.9% of revenues), compared with €571 million (38.3%) in the corresponding period of 2009, increasing by €12 million.

Due to the cost reduction actions initiated during the last year, general expenses in the first nine months of 2010 were substantially maintained in line with the level of the comparative nine months, even though advertising and promotional investments increased. Non-recurring expenses also further increased, in part associated with previously reported reorganization programmes for the sales network in some foreign markets and for the textile manufacturing segment.

As a result, operating profit (EBIT) was €141 million, up compared with €134 million in the corresponding period of 2009, with a percentage on revenues of 9.4%, compared with the previous 9.0%.

Improvements in financial charges were associated, in particular, with the reduction in average indebtedness and with the continuing favourable interest rates, which kept financial expenses down; these moved from €17 million in the first nine months of 2009 to €15 million in 2010. The usual exchange rate hedging operations also contributed positively to the result.


Must ReadView All

Pressure on  Indian textiles exporters to ease by Q3: ICRA

Textiles | On 17th Oct 2017

Pressure on Indian textiles exporters to ease by Q3: ICRA

Pressures on the profit and debt levels of textiles exporters is...

S Korean fashion brands expand overseas amid slump at home

Fashion | On 17th Oct 2017

S Korean fashion brands expand overseas amid slump at home

South Korean fashion firms are keen on tapping into overseas markets...

GMAC urges Cambodia to push fabric-forward rule in RCEP

Apparel/Garments | On 17th Oct 2017

GMAC urges Cambodia to push fabric-forward rule in RCEP

Representatives from the Garment Manufacturers Association of...

Interviews View All

Nishank Patel
Shri Dinesh Mills Limited

Broad range of fabrics will sell well this financial year

Top executives
Textile & apparel bodies

The decision is transformational

Milind Khandwe
Hindoostan Innovation Centre

‘Modern technical textile is an indispensable tool for science and...

Abhishek Pachauri

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

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Igor Chapurin
Chapurin

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

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

October 2017

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
76.9%
No
13.8%
Skip
9.2%

Total Votes: 65

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
61.5%
No
27.7%
Skip
10.8%

Total Votes: 65

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
84.6%
No
10.8%
Skip
4.6%

Total Votes: 65

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
73.8%
No
12.3%
Skip
13.8%

Total Votes: 65


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