and is based on the unaudited Interim condensed consolidated financial statements of the Group for the six months ended July 31, 2014, prepared in accordance with IAS 34 and the IFRS as adopted by the European Union. This Financial review must be read together with the 2014 Interim condensed consolidated financial statements.
During the first half of the year the PRADA Group continued to pursue its longterm growth strategy investing in its brands’ equity. Despite a difficult political and macroeconomic environment, and a general unfavorable exchange rate situation, the Group kept strengthening its retail network to further extend its global reach. At the same time, in order to limit margin pressure, several measures to increase efficiency have been taken at all operational levels.
The consolidated net revenues amounted to Euro 1,751.3 million, slightly up by 1.3% million achieved in the same six months period of 2013. At constant exchange rates the growth was 4.5%.
The EBITDA for the six months ended July 31, 2014, totaled Euro 492.8 million, down compared to the EBITDA of Euro 551.1 million achieved in the first half of 2013. The dilution recorded at gross margin level, mainly due to the negative impact of the exchange rate fluctuations, coupled with the higher incidence of the selling expenses following the retail expansion, generated the reduction in the EBITDA margin which went down from 31.9% on net revenues in the six months ended July 31, 2013, to 28.1%.
In this first half of 2014, the Group’s net result amounted to Euro 244.8 million, or 14% as a percentage of net revenues. In the same period of last year, the Group’s net result totaled Euro 308.2 million, 17.8% on revenues.
The capital expenditure for the period amounted to Euro 289.6 million and was mainly focused to enlarge, renovate and strengthen the retail network worldwide, but it also included the significant investment of Euro 61.5 million for the acquisition of the Milan buildings where the Group operates its corporate headquarter.
At July 31, 2014, the Group’s net financial position was slightly negative for Euro PRADA Group Interim Financial Report 2014 - Financial Review 11 Prada Group-Interim Financial Report 6ott 2014.indd 11 06/10/14 09.541.4 million, decreasing from Euro 295.9 million at January 31, 2014, after the capital expenditure for the period and the payment of the dividends to the PRADA spa shareholders for Euro 281.5 million.