PPR delivers highly satisfactory performance in H1 of 2012

Operating performance

In a lacklustre economic climate, PPR’s consolidated revenue from continuing operations for the first half of 2012 amounted to €6,387 million, up 16.7% on first-half 2011 as reported and 8.2% on a comparable Group structure and exchange rate basis. On a comparable basis, PPR’s consolidated revenue rose 7.9% in the first quarter of 2012 and 8.6% in the second quarter, compared to the respective prior-year periods. On a reported basis, the revenue growth figures were 15.4% and 18.1%, respectively.

The Group’s balance in terms of geographic presence and sales formats makes it more resilient to changes in the economic environment. In line with this, the Group is becoming less reliant on the European economy. Revenue generated outside the eurozone rose 13.2% in the first half of 2012 (based on comparable data) and represented 59.2% of the Group total, versus 56.6% in first-half 2011 (on a comparable basis).

The share of revenue generated outside of France continued to grow in first-half 2012, making up 77.2% of the Group total, versus 75.3% in the corresponding period of 2011 (on a comparable basis).

François-Henri Pinault, Chairman and CEO, noted: "PPR delivered a highly satisfactory performance in the first half of 2012. Our revenue climbed by 17% on a reported basis and the solid growth in our recurring operating income enabled us to post a robust recurring operating margin of nearly 13%. 

“Together, the Luxury and Sport & Lifestyle Divisions recorded a combined revenue increase of more than 25% on a reported basis, propelled by the sales momentum of all our Luxury brands across all regions. 

“The pace of growth in the Sport & Lifestyle Division picked up in the second quarter, and its profitability should be enhanced once the implementation of Puma’s Transformation Programme has been stepped up. Thanks to the power of our brands, the excellence of our products and the drive of our people, we are confident that we will be able to continue growing our revenue in the second half of 2012 and that our full-year financial performance will outstrip that of 2011."

PPR continued to roll out its expansion strategy in emerging markets, which saw a sustained high pace of growth. Revenue generated by the Group’s Luxury and Sport & Lifestyle brands advanced 16.6% on a comparable basis in these markets, which accounted for 37.8% of the brands’ total revenue in first-half 2012. The Asia-Pacific region (excluding Japan) was one of the main contributors to these brands’ sales in first-half 2012, representing 25.4% of the total, up 16.2% on a comparable basis versus the first half of 2011.

In first-half 2012, PPR’s recurring operating income amounted to over €815 million, up 20.4% on the equivalent period of 2011. This performance helped drive up the Group's operating margin by 40 basis points to 12.8%.