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Kering reports 10 percent rise in H1 earnings

By Prachi Singh

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Business

Kering has posted consolidated revenue for the first half of 2016 of 5,693 million euros (6,308 million dollars), up 3.3 percent on the first six months of 2015 as reported and 5.5 percent based on a comparable Group structure and exchange rates. The company said that exchange rate fluctuations had a negative impact on revenue during the period. Earnings per share amounted to 3.69 euros (4.09 dollars), up 10 percent compared to the first half of 2015.

Elaborating on the first half trading, François-Henri Pinault, Kering's Chairman and Chief Executive Officer, said, "We are pleased with the performances we have delivered in the first half of 2016. In an environment that remains uncertain, we intend to carry out the steadfast implementation of our strategy and maintain a strict operating and financial discipline; together with the commitment of all our teams, this reinforces our confidence that we will progress along the current growth path.”

Comparable revenues rise in H1

Comparable revenue growth was solid in both mature markets led by Western Europe and Japan and emerging markets. Revenue generated outside the eurozone accounted for 78 percent of the consolidated total in the first six months of 2016. The Group's gross margin was 3,602 million euros (3,991 million dollars), up 202 million euros (223.7 million dollars) or 6 percent, over the first-half 2015 level as reported.

Recurring operating income rose 4.9 percent year on year as reported to 811 million euros (898 million dollars) and recurring operating margin amounted to 14.2 percent for the Group as a whole, with the luxury activity posting an increase to 21.7 percent. Recurring operating margin for the sport & lifestyle activity was 2.7 percent.

EBITDA amounted to 1,011 million dollars (1,120 million dollars), up 4 percent and the EBITDA margin widened by 20 basis points on a reported basis to 17.8 percent. Net income, Group share totalled 465 million euros (515 million dollars) versus 423 million euros (468 million dollars) for the first half of 2015.

picture:kering

Kering