Italian fashion and textiles group Marzotto SpA on Wednesday revealed it swung to a first half net loss as it was forced to pay out a slice of revenue to minority shareholders.

The company posted a net loss of nine million euros versus a year-ago profit of 1.7 million euros but said excluding these payments, its profit would have been 7.8 million euros.

Revenue for the six month period rose fouer per cent year-on-year to 876.6 million euros with full year revenue and operating profit seen flat based on orders for July and August.

The owner of fashion houses such as Germany’s Hugo Boss added consolidated net profit for the year is seen down due to a higher tax rate and the absence of one-time gains.