Marcolin: the BoD approves the first quarter results
Last Tuesday, during the meeting chaired by Giovanni Marcolin Coffen, the Board of Directors of Marcolin S.p.A. examined and approved the 2009 first quarter results of the Marcolin Group.
Revenue amounted to € 52.3 million, down 6.5% on the € 56 million recorded at 31 March 2008. At constant exchange rates, the decrease is equal to 8.5%.
For a better understanding of the performance of the period, the following should be considered:
- the Group has not yet benefited from the sales revenue of the new Tod’s and Hogan lines which will be delivered only starting from the fourth quarter of the year. Moreover, the first deliveries of Dsquared2 products began only in March;
- the 2008 first quarter also included the sales of the residual stock of Cébé helmets and masks. These are not part of 2009 sales following the decision to cease winter products manufacturing and sales activities. Net of this non-recurring effect, Marcolin Group’s revenue for the first quarter of 2009 decreased by 3.8% compared with that at 31 March 2008.
EBITDA amounts to € 6.9 million, representing 13.1% of revenue compared with € 10.8 million (19.2% of revenue) recorded in the first quarter of 2008.
The decrease is mainly due to:
- the adoption of more aggressive commercial policies with respect to discounts granted to Customers in order to satisfy market needs, which are negatively influenced by the fall in demand. Such discounts prevented the Group from benefiting from the savings achieved in product costs;
- the investments made, despite the decrease in revenue, in both the organisation and business activities, aimed at achieving the best production and promotional conditions when the market recovers and fully exploiting the forthcoming launch of the new recently-acquired brands.
Profit for the period is a positive € 4.2 million (representing 8.0% of revenue) compared with € 4.8 million (8.5% of revenue) recorded in the same period of the previous year.
This result was obtained thanks to the improvement in the financial performance with respect to the first quarter of 2008 – through the reduction of interest expense on loans and successful exchange rate management - and the recognition of deferred tax assets arising from the prior year tax losses incurred by Marcolin USA.
Net financial indebtedness amounts to € 38.9 million, down 6.1 million on 31 December 2008. The decrease is mainly due to a rise in working capital as a consequence of the seasonality effect. Indeed, the period-end amount is in line with that of the first quarter of 2008.
Massimo Saracchi, Marcolin S.p.A. Managing Director and CEO, stated: “Despite the difficult economic situation, Marcolin Group performed well, confirming the positive results achieved in 2008. Profit for the first quarter of 2009 is extremely positive and, despite the persistent uncertainties of international markets which make short-term forecasts more risky, the company strongly believes in the strength of the brands already in portfolio and those which will soon be launched. Moreover, it is confident that this will enable it to achieve positive results also in 2009”.
The Manager responsible for Corporate Financial Reporting, Sandro Bartoletti, represents, pursuant to article 154 bis, paragraph 2, of the Consolidated Finance Act, that the accounting information disclosed in this press release is consistent with accounting records, documentary evidence and accounting books.
