Benetton's apparel sales to 3rd parties amount to Euro1267mn

14 Nov '06

3 min read

The Benetton Group Board of Directors approved the consolidated results for the first nine months of 2006.

The Board also approved new industrial investments for a total of 70 million euro. In particular, 50 million euro are to expand and strengthen the Italian logistic centre. This expansion, which will apply the sector's most advanced technologies, will support the forecast growth in volumes, guaranteeing timeliness and service to stores.

The Tunisian manufacturing platform will receive additional investments of around 20 million euro. Group net revenues for the first nine months of 2006 were 1,372 million euro, up by 84 million euro (+ 6.5 percent) compared with 1,288 million in the corresponding period of 2005.

“Apparel” sector sales to third parties amounted to 1,267 million euro, with an increase of 83 million euro (+ 7.0 percent), compared to 1,184 million euro in the first nine months of 2005.

Revenues in the “Apparel” sector were influenced by a 14 million euro increase in contribution of the Turkish partnership (established in May 2005), growth in sales by directly operated stores, revenue performance from the network managed by partners, driven by the commercial development strategy, including the increase in margins to the network, and the positive reception of collections by the market.

Gross operating income was 42.2 percent of revenues compared with 43.4 percent in the same period of 2005, with a contribution marginof 35.1 percent compared with 36.3 percent in the corresponding period of 2005.

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