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 May, 2006
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 May 15, 2006
Benetton Board approves 2006 first quarter 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: May 15, 2006
Benetton Board approves 2006 first quarter results
CONSOLIDATED REVENUES RISE TO 416 MILLION EURO, NET INCOME OF 24 MILLION EURO
Ponzano, May 15, 2006 - The Benetton Board of Directors today approved the consolidated results for the first quarter of 2006.
Groupnet revenues for the first quarter of 2006 were 416 million euro, compared with 383 million in the corresponding period of 2005 (+8.6%). "Apparel" sector sales amounted to 389 million euro, against 355 million euro in the first quarter of 2005, with a change of 9.5%.
In the "Apparel" sector, to be noted are the contribution to revenues by the Turkish partnership(established in May 2005), of 12 million euro, and the contribution of sales from the directly operated stores.
Revenue performance by independent partners was mainly influenced by the effects of the commercial development policy and the dynamics of 2006 spring-summer collection deliveries, designed to enhance service to stores.
Markets which continue to show significant growth are the Mediterranean basin, South Korea, China and India.
Sales were affected by positive exchange rates for around 5 million euro, representing 1.3% of total revenues.
Gross operating income was 43.0% of revenues compared with 44.2% in the same period of 2005, with acontribution margin of 35.7% compared with 37.0% in the first quarter of 2005.
EBIT was 35 million euro, 8.4% of revenues, against 37 million euro in the first quarter of 2005 (9.8%).
Net income was 24 million euro, representing 5.8% of revenues, compared with 27 million euro in the first quarter of 2005 (7%).
Shareholders'equity, at March 31, 2006, amounted to 1,300 million euro (1,275 million at December 31, 2005). The improvednet financial position of 377 million euro, versus 477 million euro at March 31, 2005, was achieved in the context of growth in operating investments and an improvement in working capital.
The results of the first quarter make it possible to confirm the previously comunicated guidance for 2006; an increase in consolidated revenues at least equal to that in 2005, an EBIT of around 9.5%-10% of consolidated revenues and net income in the region of 6.5%.
For further information and contacts:
Media Investor Relations
0039 0422519036 0039 0422519412
www.benettongroup.com/press www.benettongroup.com/investors
Benetton Group results
Consolidated statement of income
1st quarter | 1st quarter | Full year | ||||||
(millions of euro) | 2006 | % | 2005 | % | Change | % | 2005 | % |
Revenues | 416 | 100.0 | 383 | 100.0 | 33 | 8.6 | 1,765 | 100.0 |
Cost of sales | 237 | 57.0 | 213 | 55.8 | 24 | 10.9 | 995 | 56.4 |
Gross operating income | 179 | 43.0 | 170 | 44.2 | 9 | 5.7 | 770 | 43.6 |
Selling costs | 30 | 7.3 | 28 | 7.2 | 2 | 10.7 | 127 | 7.2 |
Contribution margin | 149 | 35.7 | 142 | 37.0 | 7 | 4.7 | 643 | 36.4 |
General and operating expenses | 115 | 27.5 | 105 | 27.1 | 10 | 10.2 | 438 | 24.8 |
Ordinary operating result | 34 | 8.2 | 37 | 9.9 | (3) | (10.4) | 205 | 11.6 |
Non-recurring expenses/(income) | (1) | (0.2) | - | 0.1 | (1) | n.s. | 48 | 2.7 |
EBIT | 35 | 8.4 | 37 | 9.8 | (2) | (6.5) | 157 | 8.9 |
Financial income/(expenses) | (4) | (1.0) | (4) | (1.2) | - | (9.4) | (23) | (1.3) |
Foreign currency hedging gains/(losses) and exchange differences | 1 | 0.2 | 1 | 0.4 | - | (44.7) | - | - |
Income before taxes | 32 | 7.6 | 34 | 9.0 | (2) | (7.6) | 134 | 7.6 |
Income taxes | 7 | 1.7 | 8 | 2.1 | (1) | (11.1) | 20 | 1.1 |
Net income/(loss) for the period | 25 | 5.9 | 26 | 6.9 | (1) | (6.6) | 114 | 6.5 |
attributable to: | ||||||||
- Shareholders of the Parent Company | 24 | 5.8 | 27 | 7.0 | (3) | (10.2) | 112 | 6.3 |
- minority Shareholders | 1 | 0.1 | (1) | (0.1) | 2 | n.s. | 2 | 0.2 |
Financial situation - highlights
(millions of euro) | 03.31.2006 | 12.31.2005 | Change | 03.31.2005 | |||
Working capital | 736 |
| 688 |
| 48 |
| 781 |
Assets held for sale | 8 |
| 8 |
| - |
| 6 |
Property, plant and equipment and intangible assets | 903 | 895 | 8 | 910 | |||
Non-current financial assets | 22 |
| 25 |
| (3) |
| 22 |
Other assets/(liabilities) | 8 |
| 10 |
| (2) |
| (1) |
Capital employed | 1,677 | 1,626 | 51 | 1,718 | |||
|
|
|
|
|
|
|
|
Net financial position | 377 |
| 351 |
| 26 |
| 477 |
Total Shareholders' equity | 1,300 |
| 1,275 |
| 25 |
| 1,241 |
Statement of cash flow
1st quarter | 1st quarter | |||
(millions of euro) | 2006 | 2005 | ||
Cash flow used by operating activities | (1) |
| (19) |
|
Cash flow used by investing activities | (37) |
| (62) | (A) |
Free cash flow | (38) |
| (81) |
|
Cash flow provided by financing activities: |
|
|
|
|
- net change in sources of finance | 1 | (6) | ||
- net change in cash and cash equivalents | 37 |
| 87 |
|
Cash flow provided by financing activities | 38 |
| 81 |
|
(A)Includes the purchase of financial assets in the amount of 40 million euro. | ||||