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Photographic
The Photographic Division saw strong volume growth during
2004. In constant currency terms, sales were up 23%, including
6% from the acquisition of Multiblitz. This underlying growth
was driven by the continuing launch of new products and the
demand for digital cameras, particularly in the digital SLR
segment. However the fall in the US dollar against the euro
reduced that growth to 12% in £ sterling terms, and also
adversely affected margins.
| |
2004 |
2003 |
| Turnover |
£68.7m |
£61.5m |
| Operating profit* |
£12.3m |
£13.9m |
| Operating margin* |
17.9% |
22.6% |
* before exceptional gain of £0.1 million (2003: £nil)
and goodwill amortisation of £0.2 million (2003: £0.1 million)
The market for accessories for the professional photographer
was stimulated by innovations such as the new joystick head,
whose ergonomically-shaped pistol grip allows the user to
position the camera and activate the shutter with one hand, and
the new 303SPH head which facilitates the composition of
panoramic shots, useful for capturing architectural images.
Manfrotto also has an important position at the lower end of the
video camera support market, catering to a different channel to
our Broadcast brands, where the new 519 Pro-video head
generated a lot of interest. Also in the professional arena, Litec
continued to develop its presence across Europe; its lighting
truss range was augmented with new tower systems to support
the Libera trusses launched last year.
The majority of the growth, however, came as a result of the
boom in affordable digital SLR cameras that are now being
bought by keen amateur photographers. The new Neotec tripod,
which is targeted specifically at this user group, has been selling
well ahead of expectations, and there are other products
planned for this exciting segment.
Improvements in manufacturing operations have also helped
increase volume in 2004. The closure of the small plant at Nove
in Italy early in the year has simplified work flow; the IT systems,
now rolled out to all but one site across the division, have given
greater visibility to suppliers of our needs and, together with
efficiency improvements within the factories, allowed Manfrotto
to cut its lead-time substantially, converting several weeks of
backlog into sales. Manufacturing improvement activities are
now focused more on cost reduction actions and on further
improving the health and safety culture.
Following the disposal of ALU at the end of 2003, the
management structure was changed, with several senior
vacancies being filled from outside the Group. The Campese
offices were renovated, generating sufficient space to centralise
the operations and administration functions previously dispersed
around the other plants. This has already driven improved
coordination and efficiency. In August a representative office
was established in Hong Kong in order to better support our
local third party distributors.
Information correct at 13/04/05