Marcolin Group enjoys healthy growth in profit

11 Aug '08

3 min read

The Marcolin S.p.A. Board of Directors, chaired by Giovanni Marcolin Coffen, met to approve the Marcolin Group's consolidated report for the first half of 2008. The full version of the report will be available on the company's website as from the date of filing.

REVENUE:
Consolidated revenue for the first six months of the year amounted to €107.7 million, posting an increase of €3.8 million vs. the same period in 2007. This 3.6% increase (+7.7% at constant rates) was achieved thanks to the good performance of all the lines in the portfolio.

The Group successfully consolidated its presence on the market, especially in the luxury segment, demonstrating a unique ability to develop a high fashion and high quality product.

Sunglasses and vision eyewear reported sales of €103.1 million, bettering the €97.7 million earned at 30 June 2007 and posting an increase of 5.6% on an exchange-adjusted basis.

EBITDA/EBIT:
EBITDA totaled €16.2 million (accounting for 15% of sales) compared with €9.8 million (9.4% of sales) achieved during the first half of 2007; EBIT as a percentage of sales was 11.4% (vs. 2.9% at 30 June 2007), corresponding to €12.3 million in absolute terms (vs. €3.0 million at 30 June 2007).

The significant rise in profit margins was largely attributable to the positive effects of the Management's action in previous periods, with the consequent boost in efficiency achieved by all Group companies, including the subsidiary Cébé.

Cébé was the focus of a major reorganization plan pursuant to the decision to cease production and marketing of winter eyewear products.

NET EARNINGS:
The Group reported net earnings of €7.5 million (6.9% of sales), against the €2.0 million loss (-1.9% of sales) posted in the first half of 2007.

SECOND QUARTER 2008 RESULTS:
With reference to the income statement data relating to the second quarter 2008, Directors noted that:
• Revenue from sales came to €51.7 million vs. €50.3 million in the second quarter 2007, reporting an increase of 2.8% (+7.5% at constant exchange rates);
• EBIT amounted to €3.7 million (negative for €2.9 million in the second quarter 2007) accounting for 7.2% of sales (-5.8% in the second quarter 2007);
• EBITDA amounted to €5.4 million (€2.6 million in the second quarter 2007), with a 10.5% margin on sales (vs. 5.1% in the second quarter 2007).

NET FINANCIAL POSITION:
The net financial position showed improvement of €6.3 million vs. 31 December 2007, due to greater cash flow generated by operations, and was positively influenced by seasonality. This performance was in line with forecasts made for the period.

OUTLOOK:
As regards the foreseeable evolution of operations for the rest of the year, the Group expects a considerable increase in profits in 2008 compared with a year earlier despite the mood of uncertainty on the international markets, and therefore a strong returnto profitability.

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