Turkish, Eastern Europe, China & India markets pep Benetton's apparel revenues

14 Sep '06

3 min read

The Benetton Board of Directors approved the consolidated results for the first half of 2006.

Group net revenues for the first half of 2006 were 898 million euro, up by 56 million euro (+6.7 percent) compared with 842 million in the corresponding period of 2005. “Apparel” sector sales to third parties amounted to 825 million euro, while, in the first half of 2005, these were 768 million euro, with an increase of 57 million euro (+7.4 percent).

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

The Mediterranean area, Eastern European countries, China and India continue to grow significantly. Sales were affected by positive exchange rates, for around 5 million euro
(+0.6 percent).

Luciano Benetton, commenting the first half figures stated “the development of the Group present in all the major markets and the strong acceleration in the orders we are registering confirm the strength of our world-wide commercial network and the appreciation of the quality of our products by the final consumer.” The Chairman of Benetton Group added

“I have the firm conviction that this tendency is only the beginning and I expect to see further growth in the future.” Gross operating income was 42.3 percent of revenues compared with 43.8 percent in the same period of 2005, with a contribution margin of 35.1 percent compared with 36.6 percent in the corresponding period of 2005.

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