The Benetton Group Annual Report 1996

Consolidated statements of income for the years ended December 31, 1994, 1995 and 1996
Appendix 3
(reclassified for an international format) (in millions of Lire) (Thousands
Revenue
of US $) (1)
1994 1995 1996 1996
Net sales 2,640,752 2,767,585 2,702,685 1,779,253
Other revenues 146,920 171,549 168,423 110,877
Cost of sales
2,787,672 2,939,134 2,871,108 1,890,130
Material and net change in inventories 804,809 872,790 809,982 533,234
Payroll and related cost 160,619 171,687 172,412 113,504
Subcontract work 562,863 549,958 616,189 405,654
Industrial depreciation 54,428 59,226 56,759 37,366
Other manufacturing costs 56,335 67,631 61,231 40,310
1,639,054 1,721,292 1,716,573 1,130,068
Gross margin 1,148,618 1,217,842 1,154,535 760,062
Selling, general and administrative expenses
Payroll and related cost 160,242 165,579 149,216 98,233
Distribution and transport 56,007 56,969 46,797 30,808
Sales commission 107,301 114,994 132,629 87,313
Advertising and promotion 132,803 119,993 101,638 66,911
Depreciation and amortization 41,184 41,763 38,153 25,117
Other expenses 262,341 274,741 284,421 187,242
759,878 774,039 752,854 495,624
Income from operation 388,740 443,803 401,681 264,438
Other (income) expenses
Foreign currency (gain) loss, net 3,194 (45,957) (117,214) (77,165)
Interest income (188,646) (131,422) (142,292) (93,675)
Interest expense 229,449 178,062 154,913 101,983
Other (income) expense, net (13,000) 32,025 49,107 32,329
30,997 32,708 (55,486) (36,528)
Income before taxes and minority interests 357,743 411,095 457,167 300,966
Income taxes 150,554 188,659 206,638 136,036
Income before minority interests 207,189 222,436 250,529 164,930
Minority interests (3,031) 2,181 4,887 3,217
Net income 210,220 220,255 245,642 161,713
(1) Exchange rate: US $ 1 = Lire 1,519 as of December 31, 1996.
The accompanying notes to consolidated financial statements are an integral part of these consolidated statements.