PPR Group’s H1 revenues grow by 16.7 percent

PPR Group announced a revenue increase of 16.7 percent

to 6,387 million euros (7.84 billion dollars/Rs 43,468 crores) in the first-half 2012 as compared to same period last year. It reported a growth of 8.2 per cent on a comparable group structure and exchange rate basis. On a comparable basis, PPR’s consolidated revenue rose 7.9 per cent in the first quarter of 2012 and 8.6 per cent in the second quarter, compared to the respective prior-year periods. On a reported basis, the revenue growth figures were 15.4 per cent and 18.1 per cent respectively.

Revenue generated outside the eurozone rose 13.2 per cent in the first half of 2012 (based on comparable data) and represented 59.2 per cent of the Group total, versus 56.6 per cent in first-half 2011 (on a comparable basis). The share of revenue generated outside of France increased by 77.2 per cent of the group total, versus 75.3 per cent in the corresponding period of 2011 (on a comparable basis).

Revenue generated by the group’s luxury and sport & lifestyle brands advanced 16.6 per cent on a comparable basis in these markets, which accounted for 37.8 per cent 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 per cent of the total, up 16.2 per cent on a comparable basis versus the first half of 2011.

In first-half 2012, PPR's recurring operating income amounted to over 815 million euros (1 billion dollars/Rs 5,544 crores), up 20.4 per cent on the equivalent period of 2011. This performance helped drive up the Group's operating margin by 40 basis points to 12.8 per cent. For the first six months of 2012, its EBITDA was up 19.1 per cent on first-half 2011 on a reported basis, coming in nearly 979 million euros (1.20 billion dollars/Rs 6,653 crores). This led to a 30 basis-point improvement in the EBITDA margin, which rose to 15.3 per cent.

Net financial costs totaled nearly 105 million euros (128.90 million dollars/Rs 714 crores) for the first half of 2012. Average outstanding net debt rose by 7 per cent compared with first-half 2011. Net income, group share amounted to 477 million euros (585.56 million dollars/Rs 3,246 crores) for the first six months of 2012, up 5.9 per cent on the first-half 2011 figure of 450 million euros (552.42 million dollars/Rs 3,062 crores).

Earnings per share stood at 3.79 euros (4.65 dollars/Rs 257.8), up 6.5 per cent on the first-half 2011 figure of 3.56 euros (4.37 dollars/Rs 242.2). Excluding non-recurring items, earnings per share from continuing operations amounted to 4.30 euros (5.28 dollars/Rs 292.7), 25.4 per cent higher than the 3.43 euros (4.21 dollars/Rs 233.4) reported in the first half of 2011. In first-half 2012, free cash flow from operations totaled 64 million euros (78.57 million dollars/Rs 435 crores) compared with 163 million euros (200.10 million dollars/Rs 1,109 crores) in the first six months of 2011. PPR's net debt stood at 4,484 million euros (5.50 billion dollars/Rs 30,494 crores) as of June 30, 2012.

PPR is a French multinational holding company which develops a worldwide brand portfolio (luxury, sport & lifestyle divisions and retail brands) distributed in 120 countries.