Fila shows a fall in operating result but an increase in sales in the USA, the Far East and the rest of the world. GFT NET’s operating result suffers from the termination of certain licenses; Valentino’s revenues increase by 73.4%, while RCS revenues have grown by 24.0%.
The Board of Directors Meeting of the company Holding di Partecipazioni Industriali S.p.A., held today under the chairmanship of Mr. Nicolò Nefri, has approved the consolidated results for the first quarter of the current financial year.
The economic-financial performance of the Group is, as always, influenced by the seasonal nature of the activity of the various sectors and this renders the first quarter result non-representative of variations over the entire financial year.
Net revenues, despite significant changes in the consolidation area and in the activity of certain subsidiaries, are basically in line with those of the first quarter of the previous year (Euro 841 million against Euro 832.5 million), while the operating result shows a loss of Euro 47.5 million, against an operating profit of Euro 0.9 million in the first quarter of the previous year, due to the decrease in gross operating margin.
The various activity sectors have contributed differently to this reduction.
Consolidated net financial expenses have risen from Euro 12.3 million to Euro 13.8 million.
The net loss for the quarter has increased from Euro 10.1 million to Euro 56.7 million.
Despite the negative performance of the first quarter, we expect an increase in net revenues and a positive operating result for the current financial year. As regards RCS, the current year will be characterised by the integration of the companies taken-over and the improvement of operating efficiency, while Fila and GFT NET shall be characterised by rationalisation operations and efforts to recapture profit margins. HdPnet shall suffer the effects of the starting-up phase of its activity.
HdP reports a net loss of Euro 1.0 million, compared to a loss of Euro 0.5 million in the corresponding period of the previous year. We would point out that HdP records dividends received, the main component of its income, in the second quarter of the year.
As regards the principal income statement components, net financial income has increased from Euro 3.9 million to Euro 5.2 million, due to a greater financial investment with respect to the same period of the previous year and structural costs are basically unchanged (Euro 6.2 million against Euro 6.4 million ).
Shareholders’ equity amounts to Euro 1,302.0 million, in line with that as of 31st December 2000, while net liquid assets have decreased by Euro 19.5 million (Euro 398.5 million against Euro 418.0 million as of 31st December 2000).
Net revenues have increased from Euro 376.1 million to Euro 466.4 million, representing a growth of 24.0%; in homogeneous terms the growth is of 9.3%. Italian advertising income shows an increase of 15.6% with respect to the same period of the previous year, against a market growth of 9.5% (source: Nielsen); newspaper distribution is stable for Corriere della Sera (daily average of 720,000 copies against 719,000 copies during the first quarter of 2000) while the Gazzetta dello Sport shows a decrease of 4.5% (daily average of 405,000 copies against 424,000 copies in 2000), a typical phenomenon of alternate years; the sales of the Spanish newspaper El Mundo are growing, as is publishing income; magazines in Italy report an increase in publishing income of 39.1%, while magazines abroad show a decrease, due mainly to the reduction of advertising sales. Revenue from booklets and inserts in Italy and abroad show a decrease due to the reduction in the number of new launches. The turnover of the book sector has grown significantly.
Operating losses have increased from Euro 10.0 million to Euro 27.5 million. This increase is mainly due to the increase of paper prices.
Net indebtedness amounted to Euro 272.5 million, representing an increase with respect to 31st December 2000 (Euro 241.6 million), due to normal seasonal factors.
Net revenues show a decrease of 1.1% with respect to the same period of the previous year, passing from Euro 261.9 million to Euro 259 million; however, in homogeneous terms, taking into account the closing down of certain branches and the sale of Dorotennis, revenues have increased by 4%.
The analysis of revenue per geographical area highlights the growth in sales of 19% in North America and of 10% in the Far East and the rest of the world, against a decrease of 16% in Europe; as regards the product mix, clothing has grown by 5%, while footwear shows a decrease of 8%. Incomes from royalties have increased by 6.5%.
The operating result has passed from a profit of Euro 4.9 million to a loss of Euro 6.8 million. This reduction reflects the decrease in sales and in the relevant margins in the main European countries, only partially offset to by the increase in revenue in the United States (characterised by a lower than average product margin) and in the Far East. Structural costs, despite the additional costs sustained for the development of retail and internet projects, are basically in line with those of the first quarter of the previous year.
We would point out that the operating result of the first quarter of the current financial year does not yet reflect the steps taken from the beginning of the year onwards.
Net indebtedness amounted to Euro 498.1 million, representing an increase with respect to the balance of Euro 427.4 million at the end of December 2000.
Net revenues have fallen from Euro 194 million to Euro 115.9 million. This decrease is basically due to the termination of certain important license contracts.
Valentino’s net revenues show an increase with respect to the first quarter of the previous year, from Euro 21.4 to 37.1 million, due to the net effect, on the one hand, of the commencement of the direct distribution of lines of clothing, of the significant growth in the accessories turnover and of the favourable sales performance of the European boutiques, and, on the other hand, of the significant decrease in royalties income.
