MILAN — Benetton Group SpA said Thursday that third-quarter net profits gained 12 percent and forecast upper-midsingle-digit revenues and earnings growth for the full year.
This story first appeared in the November 14, 2008 issue of WWD. Subscribe Today.
For the three months through Sept. 30, net profits reached 38 million euros, or $57.3 million, in line with analysts’ estimates. Revenues grew 6.9 percent to 538 million euros, or $810.6 million, buoyed by increased volumes, sales of higher value products, and gains in emerging markets, where the company has been opening stores.
For the full year, Benetton expects revenues to increase by 6 percent, on a currency neutral basis, and net income to rise 7 percent.
Benetton chief executive officer Gerolamo Caccia Dominioni stated the results were “satisfactory” adding, “It is now essential for the group to act with even more rapidity in view of the economic situation the markets will be facing in the coming months.”
Nine-month earnings before interest, taxes, depreciation and amortization rose 7.3 percent to 249 million euros, or $379.1 million.
As of Sept. 30, net indebtedness stood at 814 million euros, or $1.12 billion, compared with 650 million euros, or $927.7 million, in the same point last year, although Benetton said it aimed to reduce its debt to the 2007 figure by yearend.
Dollar figures were converted at average exchange rates for the periods to which they refer.
Benetton also announced the appointment of Lorenzo Zago, its former director of administration and reporting, as its new chief financial officer, replacing Emilio Foa, who rejoined Burberry Group plc at the end of September.