Ré my Cointreau Profit Lifted by Weaker Euro
November 26 2015 - 1:40AM
Dow Jones News
PARIS—French liquor group Ré my Cointreau SA said on Thursday
that first-half profit for its 2016 fiscal year rose 7.1% to €69
million ($73.30 million) because of favorable exchange rates.
Sales for the six-month ending Sept. 30 grew 6.1% to €501
million as sales made outside of Europe were boosted by a lower
euro.
Taking out the effects of exchange rates, profit shrunk by 8%
while sales declined 5.9%.
Similar to other cognac makers, Ré my Martin is still feeling
the effects of falling demand in China, a market that was once
booming earlier this decade. Cognac sales have dropped dramatically
over the past year as China's anti-corruption campaign discourages
people to splurge while the country's economic slowdown has also
hurt consumer confidence.
Sales of Ré my Martin cognac declined 3.1% to €313 million.
While the company said sales in the U.S. were strong, the weak
Chinese market still weighed on overall results.
Despite the fall in profit, the company affirmed its forecast of
"positive growth" in its operating profit "at constant exchange
rates" for the entire fiscal year.
Write to Jason Chow at jason.chow@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
November 26, 2015 02:25 ET (07:25 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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