Italy's largest clothing maker Benetton Group SpA has reported profits of €68 million for the first six months of 2004 - a 32 per cent increase from €50m in the same period last year.

First-half operating profit dropped 14 per cent to €111m, from €130 in the first half of 2003.

Revenue fell 12 per cent to €853m, from €969m.

Benetton says it expects to post net profit of between €125m and €130m for the full year.

It predicts full-year revenue to be approximately €1.75 billion.