SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of September, 2004
Benetton Group S.p.A.
Via Villa Minelli, 1 - 31050 Ponzano Veneto, Treviso - ITALY
(Indicate by check mark whether the Registrant files or will file annual reports under cover of Form 20-F or Form 40-F)
Form 20-F X Form 40-F ______
(Indicate by check mark whether the Registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934).
Yes ______ No X
TABLE OF CONTENTS
Press Release dated September 9, 2004
Benetton Board approves 2004 first half results
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Benetton Group S.p.A.
By: /s/ Luciano Benetton
______________________
Name: Luciano Benetton
Title: Chairman
Dated: September 9, 2004
Benetton Board approves 2004 first half results
NET INCOME OF 67 MILLION EURO
Ponzano, 9 September 2004. Consolidated revenues of 853 million euro, net income up to 67 million euro, free cash flow of 34 million euro, net indebtedness down to 567 million euro: these were the key numbers in the Benetton Group results for the first half of 2004, approved by the Board of Directors today.
Consolidated revenues for the first half year were 853 million euro against 969 million for the first half of 2003, affected by the sale of the sports equipment division in the last financial year and by the persistent weakness of foreign currencies. Revenues net of the impact of these two elements were 849 million euro (against 869 million) with a decrease of 2.2%. Casual clothing division turnover was 759 million euro, with a growth in volume of 2.7%.
The gross operating income was 373 million euro with a ratio to revenues of 43.7% compared with 42.8% in the first half of 2003, favourably affected by greater organisational efficiency.
Income from operations was 111 million euro compared with 130 million in the reference half year, with a ratio to revenues which moved to 13.0% from 13.4%.
Net income was 67 million euro against 50 million in the first half of the previous financial year.
The equilibrium and strength of the Group balance sheet continued to be excellent, with net indebtedness down to 567 million euro from 571 million at 30 June 2003 (468 million at 31 December 2003). The cyclical increase compared with the end of 2003 also results from the payment of substitute tax arising from the company reorganisation carried out in 2003. Stockholders' equity was 1,175 million euro.
Free cash flow, being cash generated by normal operations, before distribution of dividends and non-recurring cash flows, relative to the sale of the sports equipment business and the payment of substitute tax, improved significantly to 34 million euro from 16 million in the first half of 2003.
Based on information currently in hand, the Group confirms that net income for 2004 will range between 125 and 130 million euro.
Casual clothing division revenues, which account for around 90% of the total, are forecast to fall slightly by between 1.0% and 2.0%.
Consolidated revenues at the end of 2004, following the disposal of the sports equipment division during the previous financial year, are estimated to be around 1,750 million euro, in the face of persistently cautious demand.
Self-financing in 2004 is expected to be in line with that achieved in 2003, as is indebtedness. Investments are forecast to be around 100 million euro, focussed principally on development of the sales network.
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Group results (in millions of Euro)
Consolidated income statement
|
1 st half |
|
1 st half |
|
|||
|
(millions of Euro) |
2004 |
% |
2003 |
% |
Change |
% |
|
Revenues |
853 |
100.0 |
969 |
100.0 |
(116) |
(12.0) |
|
Cost of sales |
(480) |
(56.3) |
(554) |
(57.2) |
74 |
(13.3) |
|
Gross operating income |
373 |
43.7 |
415 |
42.8 |
(42) |
(10.2) |
|
Variable selling costs |
(53) |
(6.2) |
(58) |
(5.9) |
5 |
(8.1) |
|
Contribution margin |
320 |
37.5 |
357 |
36.9 |
(37) |
(10.6) |
|
General and administrative expenses |
(209) |
(24.5) |
(227) |
(23.5) |
18 |
(8.4) |
|
Income from operations |
111 |
13.0 |
130 |
13.4 |
(19) |
(14.4) |
|
Gain on foreign exchange |
1 |
0.1 |
10 |
1.0 |
(9) |
(88.8) |
|
Financial charges, net |
(12) |
(1.4) |
(17) |
(1.8) |
5 |
(31.9) |
|
Ordinary income |
100 |
11.7 |
122 |
12.6 |
(22) |
(18.0) |
|
Other and non recurring expenses |
(11) |
(1.3) |
(27) |
(2.8) |
16 |
(57.9) |
|
Income before taxes |
89 |
10.4 |
95 |
9.8 |
(6) |
(6.6) |
|
Income taxes |
(23) |
(2.7) |
(44) |
(4.5) |
21 |
(47.9) |
|
Minority interests loss/(income) |
1 |
0.1 |
(1) |
(0.1) |
2 |
n.s. |
|
Net income |
67 |
7.8 |
50 |
5.2 |
17 |
32.0 |
Financial situation
|
(millions of Euro) |
06.30.2004 |
12.31.2003 |
Change |
06.30.2003 |
||
|
Working capital |
782 |
729 |
53 |
777 |
||
|
Assets due to be sold |
- |
8 |
(8) |
9 |
||
|
Total capital employed |
1,746 |
1,655 |
91 |
1,703 |
||
|
Net financial position |
567 |
468 |
99 |
571 |
||
|
Shareholders' equity |
1,175 |
1,174 |
1 |
1,117 |
||
|
Minority interests |
5 |
13 |
(8) |
15 |
Summary statement of cash flows
|
1st half |
1st half |
|||||
|
(millions of Euro) |
2004 |
2003 |
||||
|
Self-financing |
144 |
157 |
||||
|
Change in working capital |
(53) |
(22) |
||||
|
Payment of taxes |
(11) |
(40) |
||||
|
Net operating investments |
(29) |
(79) |
||||
|
Change in financial fixed assets |
(17) |
- |
||||
|
Free cash flow |
34 |
16 |
||||
|
Payment of dividends |
(69) |
(64) |
||||
|
Payment of substitute tax |
(98) |
- |
||||
|
Disposal of the sports equipment sector |
35 |
82 |
||||
|
Net financial (requirements)/surplus |
(98) |
34 |
Benetton Group S.p.A. results
|
Statement of income |
|
|
1st half |
|
|
(in millions of euro) |
2004 |
|
Value of production |
26 |
|
Production costs |
41 |
|
Difference between production value and costs |
(15) |
|
Financial income and expenses |
39 |
|
Changes in value of financial assets |
(4) |
|
Extraordinary income and expenses |
5 |
|
Results before income taxes |
25 |
|
Deferred taxes |
6 |
|
Net income |
31 |
Income statements related to the first half 2003 are not comparable as a consequence
of the Company reorganization plan which took place in December 2003.
Financial situation
|
(in millions of euro) |
06.30.2004 |
12.31.2003 |
||
|
Working capital |
145 |
498 |
||
|
Total capital employed |
1,331 |
1,716 |
||
|
Net financial position |
391 |
738 |
||
|
Shareholders' equity |
940 |
978 |