UCB brand confirms good performance at Benetton

11 May '09

4 min read

EBITDA in the first quarter of the year was 50 million euro (11.1% of revenues) against 65 million (14.0%) in the first quarter of 2008. Net income was 18 million euro compared with 29 million in the first quarter of 2008. Normalized net income would be 21 million euro in the first quarter of 2009 against 25 million in the same period of the previous year.

Compared with March 31, 2008, working capital increased by 113 million euro, due to the combined effects of:
• increase in net trade receivables of 77 million euro, due to a change in the conditions of sale in some emerging markets, development of sales in India, reduced recourse to factoring operations, and also higher payables in the textile segment connected with new commercial actions initiated in the last financial year;
• growth in inventories of 18 million euro, mainly due to the greater incidence of the direct channel;
• reduction of 12 million euro in other payables.

In the first quarter, Group net investments were 50 million euro compared with 77 million in the corresponding period of 2008. Investment was predominantly for the commercial network, 33 million euro, both in established markets, such as Italy, France and Spain, and in strategic markets like Russia, ex Soviet countries and India.

Production investment related mainly to the increase in production capacity in the manufacturing facilities in Istria (Croatia) and Romania. Net financial indebtedness was 763 million euro compared with 565 million at March 31, 2008, with an increase of 74 million euro compared with December 31, 2008. The seasonal increase in indebtedness in the quarter was therefore less than that in the two previous reference periods.

Benetton Group

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