Benetton Group earnings flat, net profit up 2.8% in 2005
01 Apr '06
3 min read
Italian fashion retailer Benetton SpA has announced that its profit stagnated in 2005 and anticipates positive growth in 2006.
The net income for the period was €112 million, compared with €109 million in 2004 as its efforts to increase profitability by selling higher-priced clothing started to show effect only in the fourth quarter. Total sales rose 3.6 percent to €1,765 million (€1,704 in 2004).
The net financial position was down to €351 million from €441 million at the end of 2004, shareholders' equity (at 31 December 2005) was €1,275 million and the total dividend is €62 million, equivalent to €0.34 per share.
Orders collected for 2006 indicate a positive response from partners in the various markets to new product offerings and to new commercial initiatives introduced. In addition, in line with results in the second half of 2005, performance of directly operated stores is expected to improve further.
The significant increase in volumes and a product mix targeting increases in accessories and collection segments with high unit values, such as tailored garments and men's clothing, lead to expectations of an increase in 2006 consolidated revenues at least equal to that in 2005.
In 2006, significant growth is also forecast for markets in the Mediterranean basin, Eastern Europe, South Korea, China and India.
The company will also continue to focus on the search for specific skills and international manufacturing districts where it can introduce its know-how, in order to guarantee the long-established standards of quality of its products.
marketing@alchempro.com
