The BoD of Marcolin approves the results of the first nine months of 2009

The Board of Directors of Marcolin S.p.A., which met on 10 November 2009 under the chairmanship of Giovanni Marcolin Coffen, examined and approved the interim management report of the Marcolin Group as at 30 September 2009.

TURNOVER
Net revenues from sales achieved by the Group as at 30 September 2009, were equal to €130.9 million (€141.5 million as at 30 September 2008), posting a reduction of €10.6 million compared to the same period of the previous year. In percentage terms the change was equal to 7.5% (-9.5% at constant exchange rates).

Although trends in turnover recorded a downturn compared to the same period of the previous year, the result should be considered positively given the difficult general economic context in which it was generated as well as the fact that consignments of a number of new lines only began on a large scale from the month of October.

With regard to the trends in turnover by product line, attention is drawn to the excellent performance of the Dsquared2 collection.

OPERATING RESULT
EBITDA was equal to €8.2 million (equal to 6.3% of turnover), compared to €14.9 million (10.5% of turnover) achieved as at 30 September 2008;

EBIT was equal to €4.8 million (€9.8 million as at 30 September 2008) and represents 3.7% of turnover (6.9% as at 30 September 2008);

The reduction in profitability, which was already evident in the first half of the 2009, is mainly attributable to:

the fall in turnover, which generated a lower absorption of fixed structure costs;
the higher incidence of guaranteed minimums on licence contracts;
the investments made, in terms of both structure and sales activities, in order to fully exploit launch of the new brands acquired.

The industrial Gross Result was equal to 55.9% of turnover and has improved compared to the 54% recorded as at 30 September 2008.

NET RESULT
The Group recorded a positive net result of €4.4 million (equal to 3.3% of turnover), compared to a value of €4.8 million (3.4% of turnover) achieved during the first nine months of 2008.

A positive contribution to achievement of this result came from the improvement in financial management compared to the first nine months of 2008 – through reduction of interest expense on loans – and from the recording of prepaid taxes, attributable to the tax losses generated in the previous years by Marcolin USA which, due to its current profitability, are potentially recoverable.

THIRD QUARTER 2009 RESULTS
With regard to the economic results for the third quarter 2009, the following is reported:
•revenues from sales were equal to €30.9 million compared to €33.8 million in the third quarter 2008, posting a reduction of 8.5% (-9.8% at constant exchange rates);
•EBITDA was negative by €2.8 million (negative by €1.3 million in the third quarter 2008) with a percentage incidence on turnover equal to -9% (-4% in the third quarter 2008);
•EBIT was negative by €3.6 million (negative by €2.5 million in the third quarter 2008) with a percentage incidence on turnover equal to -11.5% (-7.4% in the third quarter 2008).

The industrial Gross Result was equal to 54.8% of turnover, in line with forecast profitability, with a sharp improvement compared to the figure recorded in the third quarter of 2008 (47% of turnover).

NET FINANCIAL POSITION
The net financial position records a sharp improvement compared to 31 December 2008, equal to €6.1 million, mainly due to the cash flows generated by operating activity, the values of which have been specifically influenced by the resources arising from sale of inventory and from cash disbursements generated by investment activity.

SIGNIFICANT EVENTS RELATING TO THE THIRD QUARTER 2009 AND BUSINESS OUTLOOK

During October the Group achieved an increase in turnover of approximately 10% compared to the same period of 2008 – an increase which was also recorded in September – confirming the validity of the commercial actions taken by management. Again during the month of October, the Group began to make large-scale consignments of the products of a number of new lines, which were very much appreciated at the time of their presentation to customers.

On 26 October 2009, the Parent Company Marcolin S.p.A., signed a loan agreement with Cassa di Risparmio del Veneto S.p.A. (Intesa San Paolo Group), for an amount of €15 million, expiring on 31 March 2015, in order to support productive investments.

Massimo Saracchi, Managing Director and General Manager of Marcolin S.p.A., commented:
“The Marcolin Group posted positive results in the first nine months of 2009, confirming the good performance already delivered in 2008, despite the difficult international economic context. It is believed that during the last part of the year, the Group may achieve further positive results in terms of turnover as well as profit and hence, the full year 2009 will close with a significant profit and a limited reduction in turnover compared to last year’s levels.”