Revenue at the French luxury conglomerate in the last three months of 2011 climbed 11.2% or a 7.7% on a comparable basis versus the same period of 2010. The combined revenue figure for the Luxury and Sport & Lifestyle divisions was 17.3%
higher in full-year 2011 than in 2010.
“PPR’s results for 2011 are excellent. They reflect the compelling appeal of our brands, the peerless quality of our products and the unerring commitment of our employees. Thanks to our Group’s unique combination of attributes, we can look to the future with confidence. Our Luxury and Sport & Lifestyle brands command leading positions in the fastest-growing segments of the apparel and accessories market and are well placed to respond to and anticipate new consumer trends in both mature markets and emerging countries. The transformation of PPR into a more cohesive, integrated group will make us stronger and enable us to fully exploit the huge growth potential of each of our brands. In the uncertain economic climate of early 2012, the core strengths underpinning PPR’s robust 2011 results will continue to propel our performance this year. PPR is confident that 2012 will be another year of sustained revenue growth and improvements in our operating and financial performances,” summarized in a statement released on Monday François-Henri Pinault, Chairman and Chief Executive Officer
of the luxury group.
In the fourth quarter of 2011, combined revenue growth for these divisions came in at 16.6% on a comparable basis (23.4% as reported). The main financial indicators for 2011 as a whole reflect "the Group’s highly satisfactory performance during the year," assured the company in a statement. Consolidated revenue from continuing operations amounted to €12,227 million in 2011, up 11.1% on 2010 as reported and 9.3% based on comparable group structure and exchange rates.
PPR’s recurring operating income totalled €1,602 million in 2011, up 16.9% on 2010. This performance helped drive up the group’s operating margin by 70 basis points to 13.1%. At comparable exchange rates, recurring operating income advanced 14.7% year on year and the operating margin improved by 40 basis points.
Gross margin for 2011 amounted to €6,224 million, up €855 million or 15.9% on 2010 as reported and 15.4% based on comparable exchange rates. Operating expenses increased by 15.6% as reported, and by 15.7% based on comparable exchange rates. In particular, payroll expenses rose by 12.2% on a reported basis.
PPR´s earnings before taxes (EBITDA) advanced 15.9% year on year to €1,911 million. This led to an improvement in the EBITDA margin, which rose to 15.6% from 15.0%. At constant exchange rates, EBITDA increased by 14.2% and the EBITDA margin was 40 basis points higher than in 2010.
The revenue generated by international operations rose to 72.6% of the group total during the year versus 69.5% in 2010 on a comparable basis. During the last 12 months, PPR continued its expansion in emerging economies, where in 2011 revenue generated by the group’s Luxury and Sport & Lifestyle divisions advanced 25.2% on a comparable basis and accounted for 36.8% of these divisions’ total revenue in 2011, representing a 230 basis-point increase on 2010 (based on comparable data). The Asia-Pacific region (excluding Japan) was one of the main contributors to these brands’ sales during the year, representing 24.3% versus 22.5% in 2010 (based on comparable data).
