IFRS 8 requires segment disclosures to provide management with an effective basis for administration and decision-making, and to supply financial investors with representative and meaningful information about company performance. The Group's activities have been divided into two segments on the basis of the internal reports that are regularly reviewed by management for the purposes of allocating resources to the different segments and assessing their performance.
These operating segments are:
-apparel, represented by the brands of United Colors of Benetton Adult and Children, Undercolors, Sisley, Sisley Young, Playlife and Killer Loop. This segment also includes the results of the Group's real estate companies;
-textile, consisting of production and sales activities for raw materials (fabrics, yarns and labels), semi-finished products and industrial services.
Segment results for 2009 and 2008 are shown below, adopting the classification criteria described above.
Segment results – 2009
|
(millions of Euro)
|
Apparel
|
Textile
|
Eliminations
|
Consolidated
|
|
Revenues from third parties
|
1,947
|
102
|
-
|
2,049
|
|
Inter-segment revenues
|
3
|
105
|
(108)
|
-
|
|
Total revenues
|
1,950
|
207
|
(108)
|
2,049
|
|
Cost of sales
|
1,027
|
188
|
(109)
|
1,106
|
|
Gross operating profit
|
923
|
19
|
1
|
943
|
|
Selling costs
|
143
|
7
|
-
|
150
|
|
Contribution margin
|
780
|
12
|
1
|
793
|
|
General and operating expenses
|
572
|
15
|
-
|
587
|
|
- of which non-recurring expenses/(income)
|
20
|
3
|
-
|
23
|
|
Operating profit
|
208
|
(3)
|
1
|
206
|
|
|
|
|
|
|
|
Depreciation and amortization
|
94
|
9
|
-
|
103
|
|
Other non-monetary costs (net impairment/(reversals))
|
21
|
-
|
-
|
21
|
|
EBITDA
|
323
|
6
|
1
|
330
|
Segment results – 2008
|
(millions of Euro)
|
Apparel
|
Textile
|
Eliminations
|
Consolidated
|
|
Revenues from third parties
|
2,034
|
94
|
-
|
2,128
|
|
Inter-segment revenues
|
2
|
136
|
(138)
|
-
|
|
Total revenues
|
2,036
|
230
|
(138)
|
2,128
|
|
Cost of sales
|
1,071
|
211
|
(136)
|
1,146
|
|
Gross operating profit
|
965
|
19
|
(2)
|
982
|
|
Selling costs
|
148
|
8
|
(1)
|
155
|
|
Contribution margin
|
817
|
11
|
(1)
|
827
|
|
General and operating expenses
|
565
|
8
|
-
|
573
|
|
- of which non-recurring expenses/(income)
|
1
|
(2)
|
-
|
(1)
|
|
Operating profit
|
252
|
3
|
(1)
|
254
|
|
|
|
|
|
|
|
Depreciation and amortization
|
89
|
11
|
-
|
100
|
|
Other non-monetary costs (net impairment/(reversals))
|
-
|
-
|
-
|
-
|
|
EBITDA
|
341
|
14
|
(1)
|
354
|
Apparel segment result
|
(millions of Euro)
|
2009
|
%
|
2008
|
%
|
Change
|
%
|
|
Revenues from third parties
|
1,947
|
|
2,034
|
|
(87)
|
(4.2)
|
|
Inter-segment revenues
|
3
|
|
2
|
|
1
|
15.1
|
|
Total revenues
|
1,950
|
100.0
|
2,036
|
100.0
|
(86)
|
(4.2)
|
|
Cost of sales
|
1,027
|
52.6
|
1,071
|
52.6
|
(44)
|
(4.2)
|
|
Gross operating profit
|
923
|
47.4
|
965
|
47.4
|
(42)
|
(4.3)
|
|
Selling costs
|
143
|
7.4
|
148
|
7.3
|
(5)
|
(2.5)
|
|
Contribution margin
|
780
|
40.0
|
817
|
40.1
|
(37)
|
(4.6)
|
|
General and operating expenses
|
572
|
29.3
|
565
|
27.7
|
7
|
1.1
|
|
- of which non-recurring expenses/(income)
|
20
|
1.0
|
1
|
0.1
|
19
|
n.s.
|
|
Operating profit
|
208
|
10.7
|
252
|
12.4
|
(44)
|
(17.4)
|
Textile segment results
|
(millions of Euro)
|
2009
|
%
|
2008
|
%
|
Change
|
%
|
|
Revenues from third parties
|
102
|
|
94
|
|
8
|
8.2
|
|
Inter-segment revenues
|
105
|
|
136
|
|
(31)
|
(22.6)
|
|
Total revenues
|
207
|
100.0
|
230
|
100.0
|
(23)
|
(10.0)
|
|
Cost of sales
|
188
|
90.6
|
211
|
91.6
|
(23)
|
(11.0)
|
|
Gross operating profit
|
19
|
9.4
|
19
|
8.4
|
-
|
0.6
|
|
Selling costs
|
7
|
3.5
|
8
|
3.7
|
(1)
|
(13.8)
|
|
Contribution margin
|
12
|
5.9
|
11
|
4.7
|
1
|
11.8
|
|
General and operating expenses
|
15
|
7.5
|
8
|
3.4
|
7
|
96.9
|
|
- of which non-recurring expenses/(income)
|
3
|
1.5
|
(2)
|
(1.0)
|
5
|
n.s.
|
|
Operating profit
|
(3)
|
(1.6)
|
3
|
1.3
|
(6)
|
n.s.
|