Benetton's preliminary revenue up to EUR 2,031 million
Wednesday, 01 February 2012
Preliminary consolidated revenues for 2011 at Benetton reached EUR 2,031 million, substantially unchanged compared with EUR 2,053 million in 2010 (-0.4% currency neutral, -1.1% at current exchange rates). The Italian retailer found the
result achieved in 2011 “positive overall, and demonstrated the capacity of the brands to react and cope with a macro-economic situation which, during the year, was in continuously negative evolution, especially in Southern Europe.”
The Apparel segment achieved EUR 1,912 million, against EUR 1,948 million in 2010 (-1.1%, currency neutral), while the Textile segment saw an increase in sales compared with the previous year of EUR 14 million, reaching EUR 119 million (+14%, at current exchange rates).
In the fourth quarter of 2011, total sales were EUR 550 million, down by EUR 5 million against the corresponding quarter of 2010, entirely due to the exchange impact. During the fourth quarter of 2011, direct sales on a like-for-like basis showed an improving trend compared with the preceding nine months, thus enabling a recovery after the difficult start to the Fall/Winter season experienced in September, due also to climatic conditions.
Russia and former Soviet countries took the lead in Europe, contributing to the revenue performance with a double-digit growth. Also they saw growth in continental Europe, mainly in Germany, and performance in the UK market. This contrasted with the decrease in Greece, although partially improving at the end of the year, and the marginal reductions in the Spanish and Italian markets. However, and overall, Europe reduced by 2% in the year.
In the Americas (+6%), strong growth in Mexico was confirmed, where the UCB brand further strengthened its position and there was strong growth overall in South American countries (+30%). In the USA and Canada, there was a contraction (-12%) associated with the restructuring of the sales network in those markets, even though the results of comparable stores in the USA showed an encouraging positive trend in the final quarter of the year. In Asia (+5%), almost all countries saw double-digit growth, including: India and Korea +11% and ex-USSR Asiatic countries even exceeding 20%. In Greater China and all its constituents, there was a gratifying direct sales result on a like-for-like basis (+ 5%). Japan, on the other hand, was down due to the restructuring of the sales network and the natural disaster of last March.
2011 was characterised by strong pressure on margins as a result of increases in prices of the principal raw materials. Benetton responded to this by launching major action programmes, to contain costs and rationalize expenses, which have contributed to a mitigation of the overall effect on the result. Based on the preliminary estimate for the final quarter, the group expects that income from Operations for 2011 will be around 7.5% of consolidated revenues (8.6% in 2010).
The Italian retailer, well known for its controversial advertising, expects 2011 full year net income to slightly exceed EUR 70 million, due also to the improvement in the average tax rate and in spite of the expected increases in financial expenses and foreign exchange hedging costs.
With regards to the outlook for the coming months, the company stated “The economic environment in the principal countries of interest to the Group continues to be characterised by three different scenarios: in Southern Europe, expectations of recession prevail and consumer demand remains weak. In the remainder of the traditional markets, reduced growth is expected, due, above all, to the uncertainties which the financial market continues to generate in the euro zone. Finally, in the emerging and high growth countries, expectations remain positive, with increases in consumption expected also in 2012.”
Preliminary consolidated revenues for 2011 at Benetton reached EUR 2,031 million, substantially unchanged compared with EUR 2,053 million in 2010 (-0.4% currency neutral, -1.1% at current exchange rates). The Italian retailer found the
result achieved in 2011 “positive overall, and demonstrated the capacity of the brands to react and cope with a macro-economic situation which, during the year, was in continuously negative evolution, especially in Southern Europe.”
Apparel segment achieved EUR 1,912 million, against EUR 1,948 million in 2010 (-1.1%, currency neutral), while the Textile segment saw an increase in sales compared with the previous year of EUR 14 million, reaching EUR 119 million (+14%, at current exchange rates).