Marcolin approves financial statements 2003
The Board of Directors of Marcolin yesterday approved the draft financial statements and the consolidated financial statements for financial year 2003.
At consolidated level, billings were approximately 157,294 thousand euros, a 6% downturn compared to the previous financial year; at constant exchange rates, consolidated sales would have been in line with 2002.
The reduction in consolidated turnover is mainly due to the performance of subsidiary Marcolin Usa, amongst other things caused by the continuing difficult economic situation and the unfavorable effect of exchange rates. According to sector analyses, the eyewear segment did in fact record a 10.3% drop on the Us market for sales of ophthalmic frames, to which is added an average annual depreciation of the dollar against the euro of 19.6%.
The consolidated financial statement of the Belluno-based group showed a loss of 4,152 thousand euros, a result that was negatively influenced by US subsidiary losses. Marcolin Usa's result for the financial year was negative by 9,138 thousand euros. This figure is mainly due to a considerable reduction in turnover linked to lower sales by mass market retailers, the cancellation of some licenses which brought in less income, and significant product returns. From an economic point of view, the start of restructuring activities by the subsidiary incurred considerable direct and indirect extraordinary charges, which came to around 4 million euros in 2003.
Consolidated Ebitda was around 10,046 thousand euros (net of negative Ebitda equal to 6,110 thousand euros for Marcolin Usa), compared to 19,687 thousand euros during the previous financial year, which had a 6.4% effect on turnover (approximately 11.8% at December 31, 2002).
With reference to the results achieved by the group, on the markets other than the United States there has been a tangible increase in turnover (13,987 thousand euros) and substantial overall maintenance of Ebitda, data which have still be evaluated positively bearing in mind the continuing difficult economic situation that characterizes the sector.
Apropos of this, there was a significant increase in sales on the domestic market (approximately +17% compared to 2002) and in other European countries, which have seen an appreciable increase in turnover. As far as the European subsidiaries are concerned, good results in terms of sales by the Spanish subsidiary (around +28%), the German subsidiary (around +30%), the French subsidiary (around +37%) and the Portuguese subsidiary (around +27%).
The consolidated net financial position had a negative variation of approximately 5,172 thousand euros compared to the previous year, passing from -38,736 thousand euros at December 31, 2002, to -43,908 thousand euros at December 31, 2003.
The ratio between net financial position and shareholders' equity for the group is 0.83 compared to 0.61 at December 31, 2002; by applying exchange rates between the euro and foreign currencies at end 2002, the ratio would have been 0.79.
The results achieved by the lead company, Marcolin SpA (negative by 6,148 euros) were also heavily affected by the performance of Marcolin Usa, which brought about the need to proceed with a partial devaluation of stocks for a total of 11,099 thousand euros. In relation to the other operating data, there has been a 19.5% increase in turnover compared to the previous financial and Ebitda went from 10,965 thousand euros to 11,989 thousand euros (+6% approximately). A proposal will be made to carry the loss forward.
During the meeting, the Board of Directors said that it was convinced, where the Marcolin Usa Inc. subsidiary was concerned, about the possibility of obtaining positive Ebitda (compared to -6,110 thousand euros for 2003) and maintaining the good results achieved on the other markets, despite the continuing difficult economic situation and the uncertain international political situation.
The Board of Directors also approved the Organization Model prepared pursuant to Legislative Decree 231/2001 and aimed at forestalling any administrative responsibility at the expense of the company under the abovementioned decree.
