INTERIM FINANCIAL REPORT AT 30 SEPTEMBER 2022 –

Margins were also impacted by a worsening of the product/market mix, as well as inflationary pressures
on the cost of materials, energy and the supply chain, partially offset by price management policies.

The net industrial margin in the 9 months was € 1,015.5 million, down as a
percentage of revenues to 47.7% from 50.2%, as an effect of the increase
in product costs (raw materials, freight, transformation costs) not fully offset
by price increases (equal to € 48 million in the 9 months).

In recent quarters, companies in our sector have had to face increasing
complexities, such as inflationary pressures on product costs, rising interest rates,
growing expectations of an upcoming recession, the volatility of the currency
markets, the increase in the level of stock at retailers and, last but not least, the
challenging comparison with an extremely positive 2021.
Such a scenario required a greater commitment from the Group to support longterm growth – by keeping high investments in media and communication – and
to protect margins by introducing selective price increases.