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, 2005
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-FX 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 ______ NoX
TABLE OF CONTENTS
Press Release dated September 21, 2005
2005 first half results approved by Benetton Board
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 21, 2005
2005 first half results approved by Benetton Board
CONSOLIDATED REVENUES 842 MILLION EURO, NET INCOME 63 MILLION EURO
Ponzano 21 September 2005 - The Benetton Group Board of Directors today approved the 2005 first half consolidated results, prepared in accordance with International Financial Reporting Standards (IFRS).
Revenues for the first half of 2005 were 842 million euro, compared with 860 million in the corresponding period of 2004. Revenue performance was mainly affected by the more aggressive sales policy starting with the 2005 fall/winter collection and benefited from improved product mix, as well as from initiatives undertaken for development of the sales network.
The contribution margin was 36.6 per cent of turnover, compared with 37.2 per cent in the same period of 2004, influenced mostly by the above-mentioned sales policy, in part offset by the high production efficiencies achieved.
The reduction in general and administrative expenses made possible anEBIT of 11.2 per cent of revenues (95 million euro) against 11.8 per cent for the first half of 2004.
Net income for the period was 63 million euro and 7.4 per cent of revenues, compared with 69 million in the first half of 2004.
Net Group investments in the first half of 2005 amounted to 39 million euro, mostly dedicated to the sales network, compared with 29 million euro in the first six months of 2004.
Free cash flow from normal operations in the first six months was positive by 72 million euro (43 million excluding the sale of 29 million euro of securities), improving from 32 million euro in the same period of 2004.
The net financial position was 475 million euro, compared with 568 million as of June 30, 2004 and 441 million euro as of December 31, 2004. The change compared with year-end was due, apart from normal cyclical movements of working capital, to investments made and dividends paid.
For further information and contacts:
Media
0039 0422519036
www.benettongroup.com/press
Investor Relations
0039 0422519412
www.benettongroup.com/investors
Benetton Group results (in millions of euro)
Consolidated statement of income | ||||||||
1st half | 1st half | Year | ||||||
(millions of euro) | 2005 | % | 2004 | % | Change | % | 2004 | % |
Revenues | 842 | 100,0 | 860 | 100.0 | (18) | (2.1) | 1,704 | 100.0 |
Cost of sales | 474 | 56.2 | 480 | 55.8 | (6) | (1.4) | 929 | 54.5 |
Gross operating income | 368 | 43.8 | 380 | 44.2 | (12) | (3.1) | 775 | 45.5 |
Selling costs | 60 | 7.2 | 60 | 7.0 | - | (1.0) | 121 | 7.1 |
Contribution margin | 308 | 36.6 | 320 | 37.2 | (12) | (3.6) | 654 | 38.4 |
General and administrative expenses | 213 | 25.4 | 218 | 25.4 | (5) | (1.8) | 496 | 29.1 |
Income before net financial expenses and taxes | 95 | 11.2 | 102 | 11.8 | (7) | (7.3) | 158 | 9.3 |
Financial (expenses)/income | (10) | (1.2) | (11) | (1.2) | 1 | (5.9) | (22) | (1.3) |
Foreign currency gain/(loss), net | (1) | (0.1) | 2 | 0.3 | (3) | n.s. | - | - |
Income before taxes | 84 | 9.9 | 93 | 10.9 | (9) | (10.4) | 136 | 8.0 |
Income taxes | 21 | 2.5 | 25 | 2.9 | (4) | (13.9) | 28 | 1.6 |
Net income | 63 | 7.4 | 68 | 8.0 | (5) | (9.2) | 108 | 6.4 |
attributable to: | ||||||||
- Group's net income | 63 | 7.4 | 69 | 8.1 | (6) | (9.8) | 109 | 6.4 |
- minority interests loss | - | - | (1) | (0.1) | 1 | (77.5) | (1) | - |
Financial situation - highlights | ||||||||
(millions of euro) | 06.30.2005 | 12.31.2004 | Change | 06.30.2004 | ||||
Working capital | 738 |
| 711 |
| 27 |
| 794 | |
Assets due to be sold | 9 |
| 8 |
| 1 |
| - | |
Tangible and intangible fixed assets | 918 | 910 | 8 | 914 | ||||
Financial fixed assets | 26 |
| 22 |
| 4 |
| 20 | |
Other assets/(liabilities) | 3 |
| 3 |
| - |
| 10 | |
Total capital employed | 1,694 | 1,654 | 40 | 1,738 | ||||
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Net financial position | 475 |
| 441 |
| 34 |
| 568 | |
Total Shareholders'equity | 1,219 |
| 1,213 |
| 6 |
| 1,170 | |
Statement of cash flow | ||||||||
1st half | 1st half | |||||||
(millions of euro) | 2005 | 2004 | ||||||
Cash provided (used) from operating activities |
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|
|
| 92 |
| (20) | (B) |
Cash used from investing activities |
|
|
|
| (20) | (A) | (10) | (C) |
Free cash flow |
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|
|
| 72 |
| (30) |
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Cash provided (used) from financing activities: |
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- payment of dividends | (62) | (69) | ||||||
- net change in other financing activities | 4 | (12) | ||||||
- net increase (decrease) in cash and cash equivalents |
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|
|
| (14) |
| 111 |
|
Cash provided (used) from financing activities |
|
|
|
| (72) |
| 30 |
|
(A)Includes sale of securities of 29 million euro. | ||||||||
(B)Includes payment of substitute tax of 98 million euro. | ||||||||
(C)Includes, for 35 million euro, the residual effects of the sale of the sports equipment business. |
Benetton Group S.p.A. results
Statements of income reclassified | |||
1st half | 1st half | ||
(millions of euro) | 2005 | 2004 | Change |
Financial income and expenses | 55 | 39 | 16 |
Changes in value of financial assets | (2) | (4) | 2 |
Other operating income | 23 | 26 | (3) |
Other operating costs | (30) | (41) | 11 |
Extraordinary income and expenses | (1) | 5 | (6) |
Results before income taxes | 45 | 25 | 20 |
Income taxes | 2 | 6 | (4) |
Net income | 47 | 31 | 16 |
Financial situation | |||
(millions of euro) | 06.30.2005 | 12.31.2004 | 06.30.2004 |
Working capital | 88 | 93 | 145 |
Total capital employed | 1,260 | 1,267 | 1,331 |
Net financial position | 327 | 319 | 391 |
Shareholders'equity | 933 | 948 | 940 |