(Reuters) - French planemaker Dassault Aviation reported on Tuesday first half adjusted net sales of 2.54 billion euros ($2.76 billion), up from 2.30 billion euros over the same period last year.

The increase was driven by the delivery of 12 Falcon business jets and six Rafale France, slightly recovering from last year's slump caused by supply chain issues, although the French group did not completely overcome the bottlenecks.

"There are many shortages in our production lines due to supplier inefficiencies in some cases, especially in the aerostructure sector," it said.

The French group reaffirmed its forecasts for the year.

WHY IT IS IMPORTANT

France has emerged as the second-largest arms exporter in the world, outpaced only by the U.S., according to a study published in March by leading conflict think-tank SIPRI. France's surge up the rankings comes thanks to major deals for Dassault Aviation's Rafale fighter jet, signed with Qatar, Egypt and India, which opted for French-made aircrafts over Russian ones.

KEY QUOTE

"In France, the President of the Republic, as head of the armed forces, wrote to defense manufacturers urging them to step up their efforts in the context of a war economy. In response to this call, I instructed Dassault Aviation employees to prioritize Rafale production, for both France and for Export," Chief Executive Officer Éric Trappier said in a statement.

CONTEXT

Defence companies have seen a surge in business as Western governments beef up their military in response to Russia's invasion of Ukraine.

BY THE NUMBERS

Dassault's order backlog stood at 41.16 billion euros at the end of June and included 223 Rafale warplanes and 83 Falcon business jets, the group said.

The French group said its adjusted operating income for the January-June period rose to 170 million euros from 151 million euros a year earlier.

($1 = 0.9212 euros)