Operating performance

In a weaker economic climate, Kering's revenue from continuing operations for the first half of 2013 amounted to €4,678 million, up 1.4% over the first half of 2012 as reported and 4.2% based on a comparable Group structure and exchange rates. Kering recorded revenue growth of 3.3% on a comparable basis in the first quarter of 2013 and 5.2% in the second quarter (1.2% and 1.6% respectively, as reported).

The Group’s balance across regions and distribution formats enhances its resilience to changes in the economic environment. Revenue generated outside the Eurozone rose 6.3% in the first half of 2013 (based on comparable data) and accounted for 79% of the Group total, versus 78% in the first half of 2012 (on a comparable basis). Sales in France represented 5.4% of the Group's total revenue in the first half of 2013.

Kering pursued its strategy of expanding in emerging markets where revenue posted further growth. Revenue generated by the Group’s Luxury and Sport & Lifestyle brands in emerging markets rose 4.5% on a comparable basis, and accounted for 39% of total revenue for the period, representing a 10 basis-point increase over the first-half 2012 level based on comparable data. During the first six months of 2013, the Group's brands also posted a steady rise in revenue in mature markets, up 4.1% year on year (based on comparable data).

In the first six months of 2013, Kering's recurring operating income amounted to €843 million, up 2.3% on the equivalent period of 2012. This performance helped drive up the Group's recurring operating margin by 10 basis points to 18%.

At €983 million, EBITDA for the first six months of 2013 was 2.9% higher than in the first half of 2012 on a reported basis. This led to a 30 basis-point improvement in the EBITDA margin to 21%.

The Group's other non-recurring operating income and expenses consist of unusual items that could distort the assessment of each brand’s economic performance. In the first half of 2013, this item represented a net expense of €25 million and primarily included €8 million in exceptional asset write-downs and €8 million in restructuring costs.

François-Henri Pinault, Chairman and Chief Executive Officer, commented: "Kering delivered a solid performance in the first half of 2013, with revenue up 4% on a comparable basis and further growth in operating margin. The Luxury Division continued to deliver robust growth, gathering momentum in the second quarter and powered by the solid performance in its directly operated stores and its mature markets.

:The contraction in the Sport & Lifestyle Division's sales is in line with our forecasts for the full year. Puma, now under the management of Björn Gulden, is continuing its Transformation Programme. The strength of our brands, their organic growth potential, the good geographic balance of our activities and the commitment of our teams all reinforce our confidence in the Group's ability to further improve its performances in the full year."

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Kering