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, 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-F X 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 ______ No X
TABLE OF CONTENTS
Press Release dated May 16, 2005
Benetton Board approves 2005 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 16, 2005
Benetton Board approves 2005 first quarter results
CONSOLIDATED REVENUES 378 MILLION EURO, NET INCOME 23 MILLION EURO
Ponzano, May 16, 2005 - The Benetton Board of Directors today approved the consolidated results for the first quarter of 2005.
Consolidated revenues for the 2005 first quarter were 378 million euro, compared with 381 million in the corresponding period of 2004. Casual sector sales amounted to 339 million euro, in line with the first quarter of 2004, thanks to the growth in the retail revenues and to a different product mix.
Gross operating margin was 43.5 per cent of revenues, compared with 44.9 per cent in the same period of 2004, affected by the different product mix relative to the comparative quarter.
Income from operations was 36 million euro, 9.4 per cent of revenues compared with 11.9 per cent in the corresponding period in 2004, influenced mainly by increased costs for expansion of the directly operated commercial network.
Net income for the period was 23 million euro, compared with 28 million in the first quarter of 2004.
Free cash flow in the first three months was 42 million euro negative, improving from 51 million euro in the same period of 2004.
Group net operating investments in the first quarter of 2005 amounted to 23 million euro compared with 21 million euro in the first quarter of 2004. Around 15 million euro was dedicated to commercial activities and around 6 million euro to investments in production.
The net financial position was 470 million euro, compared with 497 million as of March 31, 2004 and 431 million euro as of December 31, 2004. The change compared with year-end was mainly due to the normal working capital cycle.
The Board also examined the 2005 outlook and confirmed the full year forecast announced at the time of the March 4th 2005 Board Meeting.
After closure of the first quarter, the Company finalized an important Joint Venture agreement in Turkey (Benetton Giyim Sanayi) and a co-branding agreement with the Barbie brand of the Mattel Group.
For further information and contacts:
Media
0039 0422519036
Investor Relations
0039 0422519412
www.benettongroup.com/press
www.benettongroup.com/investors
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Group results |
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|
Consolidated income statement |
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|
1st quarter |
1st quarter |
||||||
|
(in millions of euro) |
2005 |
% |
2004 |
% |
Change |
% |
|
|
Revenues |
378 |
100.0 |
381 |
100.0 |
(3) |
(0.8) |
|
|
Cost of sales |
(214) |
(56.5) |
(210) |
(55.1) |
(4) |
1.7 |
|
|
Gross operating income |
164 |
43.5 |
171 |
44.9 |
(7) |
(3.8) |
|
|
Variable selling costs |
(22) |
(5.9) |
(25) |
(6.6) |
3 |
10.3 |
|
|
Contribution margin |
142 |
37.6 |
146 |
38.3 |
(4) |
(2.7) |
|
|
General and administrative expenses |
(106) |
(28.2) |
(101) |
(26.4) |
(5) |
5.7 |
|
|
Income from operations |
36 |
9.4 |
45 |
11.9 |
(9) |
(21.5) |
|
|
Foreign currency gain, net |
0 |
0.1 |
- |
- |
- |
n,s, |
|
|
Financial charges, net |
(6) |
(1.5) |
(5) |
(1.5) |
(1) |
(1.7) |
|
|
Ordinary income |
30 |
8.0 |
40 |
10.4 |
(10) |
(23.8) |
|
|
Other and non recurring expenses |
(1) |
(0.2) |
(1) |
(0.2) |
- |
24.7 |
|
|
Income before taxes |
29 |
7.8 |
39 |
10.2 |
(10) |
(24.8) |
|
|
Income taxes |
(6) |
(1.8) |
(11) |
(3.0) |
5 |
(41.3) |
|
|
Minority interests (income)/loss |
0 |
0.1 |
0 |
0.1 |
(0) |
n,s, |
|
|
Net income |
23 |
6.1 |
28 |
7.3 |
(5) |
(16.9) |
|
|
Financial situation - highlights |
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|
(millions of euro) |
03.31.2005 |
12.31.2004 |
Change |
03.31.2004 |
|||
|
Working capital |
759 |
688 |
71 |
820 |
|||
|
Asset due to be sold |
6 |
8 |
(2) |
8 |
|||
|
Total capital employed |
1,731 |
1,668 |
63 |
1,707 |
|||
|
Net financial position |
470 |
431 |
39 |
497 |
|||
|
Shareholders' equity |
1,255 |
1,230 |
25 |
1,204 |
|||
|
Minority interests |
6 |
7 |
(1) |
6 |
|||
|
Summary statement of cash flows |
|||||||
|
1st quarter |
1st quarter |
Year |
|||||
|
(millions of euro) |
2005 |
2004 |
2004 |
||||
|
Net cash flow from operating activities |
(20) |
(21) |
269 |
||||
|
Net operating assets |
(22) |
(15) |
(69) |
||||
|
Change in financial fixed assets |
- |
(15) |
(23) |
||||
|
Free cash flow |
(42) |
(51) |
177 |
||||
|
Payment of dividends |
(0) |
- |
(69) |
||||
|
Payment of substitute tax |
- |
- |
(125) |
||||
|
Net sports equipment disposal |
- |
27 |
50 |
||||
|
Net financial (deficit)/surplus |
(42) |
(24) |
33 |
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