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 November, 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 November 11, 2005
Benetton Board approves results for the first nine months of 2005
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: November 11, 2005
Benetton Board approves results for the first nine months of 2005
CONSOLIDATED REVENUES 1,288 MILLION EURO (UP 2.8%),
NET INCOME 89 MILLION EURO
Ponzano, 11 November 2005 - The Benetton Group Board of Directors today approved the consolidated results for the first nine months of 2005, prepared in accordance with International Financial Reporting Standards (IFRS).
Revenues for the nine months of 2005 were 1,288 million euro, up 2.8%, compared with 1,253 million in the corresponding period of 2004. Revenues for the quarter were 446 million euro, up 13.7% compared with the third quarter of 2004. Revenue performance benefited from the good reception by the market of products in the new collections, especially the 2005 fall/winter collection, as well as from increased revenues in the directly owned stores.
The contribution margin was 468 million euro (36.3% of revenues) substantially in line with the 472 million of the first nine months of 2004, influenced in particular by the further actions undertaken for the development of the network adopted with the 2005 fall/winter collection and, in part, offset by the high production efficiencies achieved.
In the third quarter, the contribution margin increased to 160 million euro (up 4.8%) compared with 152 million in the corresponding quarter of 2004 due to the increased volumes of reorders in the period.
EBIT was 10.7% of revenues (138 million euro) against 12.1% in the first nine months of 2004 (152 million euro).
In the third quarter EBIT was 9.6% of revenues (43 million euro) compared to 12.7% in the same period of the previous year.
Net income for the period was 89 million euro and 6.9 % of revenues, compared with 104 million in the first nine months of 2004.
In the third quarter of 2005, net income was 26 million euro against 35 million in the third quarter of 2004.
Total net Group investments in the first nine months of 2005 were 79 million euro compared with 29 million euro in the first nine months of 2004, mostly dedicated to the sales network and development of new markets.
Free cash flow from normal operations in the first nine months was positive by 56 million euro (negative 62 million excluding the cession of 118 million euro of short term financial assets), compared with a positive amount of 24 million euro in the same period of 2004.
The net financial position was 565 million euro, compared with 592 million as of September 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 distributed.
Regardingthe 2005 year-end forecast, the management has up-dated its year-end previsions, following the market's good reception of products in the new collections, with revenues forecast around 1,720 million euro, EBIT around 10% and net income around 6%.
For further information and contacts:
Media 0039 0422519036
www.benettongroup.com/press
Investor Relations 0039 0422519412
www.benettongroup.com/investors
Benetton Group results
Consolidated statement of income
Nine months | Nine months | |||||
(millions of euro) | 2005 | % | 2004 | % | Change | % |
Revenues | 1,288 | 100.0 | 1,253 | 100.0 | 35 | 2.8 |
Cost of sales | 729 | 56.6 | 693 | 55.3 | 36 | 5.2 |
Gross operating income | 559 | 43.4 | 560 | 44.7 | (1) | (0.2) |
Selling costs | 91 | 7.1 | 88 | 7.0 | 3 | 3.5 |
Contribution margin | 468 | 36.3 | 472 | 37.7 | (4) | (0.9) |
General and operating expenses | 330 | 25.6 | 320 | 25.6 | 10 | 3.2 |
Earning before interest and taxes (EBIT) | 138 | 10.7 | 152 | 12.1 | (14) | (9.4) |
Financial income/(expenses) | (14) | (1.1) | (16) | (1.2) | 2 | (15.4) |
Foreign currency hedging gains/(losses) and exchange differences | (1) | (0.1) | 1 | 0.1 | (2) | n.s. |
Income before taxes | 123 | 9.5 | 137 | 11.0 | (14) | (10.7) |
Income taxes | 33 | 2.5 | 35 | 2.8 | (2) | (6.1) |
Net income/(loss) for the period | 90 | 7.0 | 102 | 8.2 | (12) | (12.2) |
attributable to: | ||||||
- Shareholders of the Parent Company | 89 | 6.9 | 104 | 8.3 | (15) | (14.6) |
- minority Shareholders | 1 | 0.1 | (2) | (0.1) | 3 | n.s. |
3rd quarter | 3rd quarter | |||||
(millions of euro) | 2005 | % | 2004 | % | Change | % |
Revenues | 446 | 100.0 | 392 | 100.0 | 54 | 13.7 |
Cost of sales | 255 | 57.3 | 212 | 54.2 | 43 | 20.1 |
Gross operating income | 191 | 42.7 | 180 | 45.8 | 11 | 6.1 |
Selling costs | 31 | 7.0 | 28 | 7.0 | 3 | 13.5 |
Contribution margin | 160 | 35.7 | 152 | 38.8 | 8 | 4.8 |
General and operating expenses | 117 | 26.1 | 102 | 26.1 | 15 | 13.8 |
Earning before interest and taxes (EBIT) | 43 | 9.6 | 50 | 12.7 | (7) | (13.9) |
Financial income/(expenses) | (4) | (0.9) | (6) | (1.5) | 2 | (32.7) |
Foreign currency hedging gains/(losses) and exchange differences | - | - | - | - | - | - |
Income before taxes | 39 | 8.7 | 44 | 11.2 | (5) | (11.2) |
Income taxes | 12 | 2.6 | 10 | 2.6 | 2 | 12.6 |
Net income/(loss) for the period | 27 | 6.1 | 34 | 8.6 | (7) | (18.5) |
attributable to: | ||||||
- Shareholders of the Parent Company | 26 | 5.9 | 35 | 8.8 | (9) | (24.2) |
- minority Shareholders | 1 | 0.2 | (1) | (0.2) | 2 | n.s. |
Financial situation - highlights
(millions of euro) | 09.30.2005 | 12.31.2004 | Change | 09.30.2004 |
Working capital | 876 | 711 | 165 | 881 |
Assets due to be sold | - | 8 | (8) | - |
Tangible and intangible fixed assets | 918 | 910 | 8 | 901 |
Financial fixed assets | 24 | 22 | 2 | 19 |
Other assets/(liabilities) | (4) | 3 | (7) | (3) |
Capital employed | 1,814 | 1,654 | 160 | 1,798 |
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Net financial position | 565 | 441 | 124 | 592 |
Total Shareholders' equity | 1,249 | 1,213 | 36 | 1,206 |
Statement of cash flow
Nine months | Nine months | |||
(millions of euro) | 2005 | 2004 | ||
Cash flow provided/(used) by operating activities | 17 |
| (72) | (B) |
Cash flow provided/(used) by investing activities | 39 | (A) | 21 | (C) |
Free cash flow | 56 |
| (51) |
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Cash flow provided/(used) by financing activities: |
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- dividends paid | (62) | (69) | ||
- net change in sources of finance and Shareholders' equity | (152) | (10) | ||
- net change in liquid funds and equivalent resources | 158 |
| 130 |
|
Cash flow provided/(used) by financing activities | (56) |
| 51 |
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(A)Includes receipts from sales of securities of 118 million euro. | ||||
(B)Includes the payment of substitute tax of 124.5 million euro. | ||||
(C)Includes residual impacts of the sale of the sports equipment segment of 49 million euro. | ||||