Press Release – Beretta Holding S.p.A.
The general meeting of Shareholders of Beretta Holding has approved the Group Financial Statements for the 2014 FY, showing 40 million Euro net profit (50 million in 2013), after provision for depreciations and amortizations of 36.6 million Euro (26.1 million in 2013) and income taxes of 20 million Euro (33.9 million in 2013).
Net sales were 623.6 million Euro (638.2 million in 2013), a 2.3% decrease of which 1% is attributable to exchange rates fluctuations.
Sales in markets outside Italy further increased, equaling 94% of total; as in the past, sales in North America exceeded 50%.
A major influence on the sales results in year 2014 was a United States demand shortfall for civilian products, which was extraordinarily strong in FY 2013. The substantial stability of turnover was therefore achieved thanks to increased sales in the other main markets where the Group operates, with special reference to central- north Europe and other countries outside of Europe, while sales in Italy showed a further decline.
Following a FY 2013 decrease, law enforcement and defense sales recovered, thus reaching 17% of total sales.
Thanks to the growing weight of the optics division, non-firearms sector sales account today for one fourth of total sales and showed an overall 4% growth, with clothing and accessories category growing by 12%.
It is worth mentioning that 4% of civilian sales were made directly to the end consumer, thanks to the prestigious Beretta Galleries and the growing contribution of own outlets and ecommerce/catalogues.
Profitability was satisfactory even if lower than in year 2013, due to a less favorable product/market mix and higher weight of depreciation as a consequence of machinery revaluation by some Italian subsidiaries.
Capital expenditures grew significantly, reaching 36 million Euro (26.5 in 2013), of which half was made in the Italian facilities; r & d expenses, fully charged to the income statement were 17.5 million Euro , equal 2.8% of net sales ( 2.5% in 2013)
Average headcount for the Group was 3,020 people, slightly growing compared with 2013. Net financial position at year end is positive for 113 million Euro and available for future acquisitions.
As far as business evolution is concerned, the following should be noted:
Besides heavy concerns for the difficult situation in Russia, the outlook in the commercial sector is more favorable thanks to the confirmed vivacity of North-America demand in the hunting and shooting sector, where the wide range of Group products and recent novelties are highly appreciated by the customers.
In the defense/law enforcement sector, orders on hand and ongoing negotiations are promising, but it will be very challenging to repeat the same results as for year 2014.
The current year will be very demanding also internally, with one more season of heavy capital expenditures, among which it is worth mentioning the important project of transferring the manufacturing activity of Beretta USA to the new facility in Tennessee.
Concerning the currency situation, it is worth mentioning that US Dollar/ Euro ratio finally seems steadily heading towards a more favorable rate for the Group.
Cavaliere del Lavoro Ugo Gussalli Beretta, for decades at the head of the Beretta Group, has left the position of President and CEO of the mother company Beretta Holding and of its subsidiary Fabbrica d’Armi Pietro Beretta in coincidence with 2014 financials approval.
He will keep an active role as strategic guide and group coordinator for new products development and defense and law enforcement activity.
For a long time involved with executive positions in the relevant Boards, his son Pietro has been appointed President and CEO of Beretta Holding and his son Franco has been appointed President and CEO of Fabbrica d’Armi Pietro Beretta.